Companies are increasingly scrutinized on how they manage environmental, social and governance (ESG) risks. These could be external risks such as land disputes with indigenous groups, or internal factors such as how well they take care of their employees. Research by Wharton management professor Witold Henisz shows that ESG risks do affect a company’s bottom line. He shared some of his findings on the Dollars and Change show on Wharton Business Radio, which airs on SiriusXM channel 132. He spoke with Wharton management professor Katherine Klein, who is vice dean of the Wharton Social Impact Initiative (WSII), and Sherryl Kuhlman, its managing director. (This interview is included in a special report by Knowledge at Wharton and WSII titled, “ Innovative Business Approaches to Social Impact .”) Following is an edited transcript of the conversation. Katherine Klein: How would you describe the focus of your work? Is it sustainable investing? Is it ESG investing? Is it ESG metrics?…