Wipro’s ESG Challenges: Navigating Compliance, Reputation, and Strategic Risks

Wipro Limited (WIT) has disclosed a new risk, in the Manufacturing category.

Wipro Limited faces significant business risks if it fails to meet its Environmental, Social, and Governance (ESG) standards or achieve its ESG goals, which are increasingly scrutinized by stakeholders. The company’s alignment with global climate initiatives, such as the Paris Agreement, is crucial, as non-compliance could lead to market access limitations and reputational damage. With the introduction of stringent regulations like the EU’s Corporate Sustainability Reporting Directive and California’s climate change disclosure requirements, Wipro may encounter increased compliance costs and legal challenges. Additionally, failure in governance or strategy execution could undermine client relationships, access to capital, and talent acquisition, while conflicting stakeholder views on ESG could further complicate its strategic positioning.

Overall, Wall Street has a Strong Sell consensus rating on WIT stock based on 3 Sells.

To learn more about Wipro Limited’s risk factors, click here.