Now that digital transformation is becoming a central pillar of business strategies, ESG (Environmental Social and Governance) approaches are becoming increasingly important. The “G” pillar – Governance, which includes internal processes, control mechanisms and risk management – deserves special attention.
As Kristián Alakša, CEO of GAMO, underlines, this aspect forms the basis of the integrity and responsibility of any modern company: ‘ESG governance is about ensuring effective, ethical and consistent decision-making. Although it is often overshadowed by environmental and social issues, its importance is crucial in the digital era – especially in light of cyber risks, which represent one of the biggest challenges.”
Cybersecurity naturally becomes a key “G” element in ESG. Businesses that implement robust security strategies into their governance not only protect their digital assets, but also increase stakeholder trust and comply with legislative requirements. Such an approach ensures compliance with regulations such as GDPR or the Cybersecurity Act 2024, which protect data, products and services. It also strengthens data protection and reputation by minimising the impact of data leaks and breaches. Companies that have systems in place to address cyber incidents are also demonstrating their ability to respond to unforeseen events and increasing the resilience of their business. “Cybersecurity implementation within ESG is directly related to the maturity of management processes. Transparent reporting of these indicators not only increases investor and customer confidence, but also offers a clear picture of a company’s ability to protect its digital assets,” emphasises Kristián Alakša.
One of the key steps towards including cybersecurity in ESG reporting is the transparent reporting of indicators and actions taken. In GAMO’s experience, companies can disclose in ESG reports methodologies to identify and mitigate cyber risks, training programs for employees to manage digital threats, or the implementation of advanced technologies to protect against evolving threats. ESG reports conceived in this way become not only a tool for showcasing corporate responsibility, but also an important indicator of a company’s maturity.
Although the cost of implementing cybersecurity measures is significant, companies that implement this area gain a competitive advantage. “Incorporating cybersecurity into management is an investment in trust, continuity and sustainability. Companies that underestimate this aspect risk not only regulatory sanctions, but also a weakened reputation,” explains GAMO CEO Alakša of the risks.
At a time when digital threats are becoming an integral part of business, ESG without an emphasis on governance and cyber security is losing its full potential. Companies embarking on a path of proactive protection of their digital assets and transparent reporting will not only meet legislative requirements, but also gain the long-term trust of investors, customers and employees. The path to future competitiveness therefore leads through security, trust and resilience.
