Environmental, social and governance (ESG) standards have become crucial metrics for corporate performance, reputation and risk mitigation in recent years. Successful implementation of an ESG program not only affects a company's social and community profile, but also can positively influence its potential financial performance. Beyond well-known ESG issues covering carbon emissions, human capital development, responsible investing and business ethics, privacy and cybersecurity are fast becoming important topics for companies to address in their ESG programs and disclosures.

Recent analysis of public Form 8-K and Form 10-K filings over the past five years by Bloomberg Law confirms there has been a significant uptick in companies considering data privacy a noteworthy topic in their ESG-related statements. Likewise, in a 2021 survey of institutional investors by RBS Global Asset Management, cybersecurity was ranked as the second highest ranked ESG issue about which investors were most concerned, behind anti-corruption. Notably, MSCI, a leader in ESG ratings, includes privacy and data security as one of a few dozen key issues—among mainstays like climate change vulnerability, renewable energy, supply chain labor standards and community relations—in its ESG ratings framework.