Companies are increasingly sensitive to risks associated with wildlife and other environmental crimes. Clients want to work with businesses that act responsibly to safeguard the environment and may avoid working with companies associated with wildlife crime, even unwittingly. ESG factors are increasingly important to investors. Reputational risks are difficult to avoid as social media can quickly spread information on purported or actual misdeeds by a company.

At the same time, legal risks are increasing as organised crime groups engaged in wildlife trafficking extend their range and reach across the globe, lengthening and complicating supply chains and the movement of money and products. Financial institutions and transport companies in particular face significant legal risk at all points of the supply chain if found to be involved in the movement of wildlife in contravention of national or international laws. Animal-based businesses, including zoos, medical research facilities and pet stores, can be held criminally liable for trafficking wildlife.

The vast amounts of money moving through the financial system to fund wildlife trafficking can lead to serious economic losses for financial institutions, and should be accounted for when determining financial risk tolerance.

Moreover, wildlife trafficking represents a serious security threat to companies, particularly in the transport and logistics sectors. Companies that do not know what their vehicles are transporting may be at risk of transporting explosives or other dangerous goods. Corrupt or criminal insiders pose an internal security threat, particularly if they are able to bypass security procedures.

For more insights into private sector risks in relation to IWT, see Wannenwetsch (2019), Wannenwetsch & Aiolfi (2019) and Wittig (2020).