Reprisk the Leading Research Tool to Help You Flag, Assess, and Monitor ESG Risks in Your Business
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An introduction to RepRisk The leading research tool to help you flag, assess, and monitor ESG risks in your business RepRisk AG Zurich, Switzerland February 2018 RepRisk AG, Zurich, Switzerland | www.reprisk.com | RepRisk® is a registered trademark. RepRisk delivers leading research solutions to mitigate ESG and business conduct risks § RepRisk is a pioneer in ESG and business conduct risk research and business intelligence § 1998: Founded as a risk consultancy serving the financial sector § 2006: Launch of the RepRisk Platform as a due diligence solution to help firms identify, assess, and monitor risks and violations of international standards in their business § Today: Runs the world’s most comprehensive database on ESG risks, serving 200+ clients globally – and the only provider to cover private companies and projects in developed, emerging and frontier markets. § Headquarters in Zurich, with offices in Berlin, Manila, and Toronto 2 RepRisk serves clients worldwide – helping them prevent and mitigate ESG risks in their business PRIVILEGED 3 Our framework: ESG risks can materially impact a firm’s social license to operate and its bottom line Business conduct risks Environmental Social Governance Pollution, waste, Human rights abuses, Corruption, bribery, climate change labor, discrimination tax evasion, fraud Compliance risks Reputational risks Financial risks PRIVILEGED 4 Our research approach: It’s not enough to look at policies – you must look at performance There are two sources of information used to assess a company: RepRisk: Outside-in perspective Other providers: Inside-out focus § Focuses on performance § Focuses on intention § Based on media, stakeholders, § Based on a company’s own self- and public sources reporting, such as: external to a company § Sustainability or CSR Reports § Provides a timely and § effective “reality check” Company website about what is happening on-the- § Company Code of Conduct ground, i.e. how a company and policies conducts its business where it operates around the world § Management systems and certifications (e.g. ISO 14001) PRIVILEGED 5 Our research input: A daily screening of big data to systematically identify and assess ESG risks Big data: Daily screening of +80,000 sources and stakeholders NGOs News sites Research Gov’t firms agencies Newsletters Twitter Think Regulators tanks Blogs Print media Identify, curate, assess, and quantify ESG risks PRIVILEGED 6 Our language coverage: Research in 16 languages supports the early identification of risks § Risks often appear earlier at the local level in local languages § Research in 16 major business languages supports the early identification of risks Arabic English Italian Portuguese Chinese Finnish Japanese Russian Danish French Korean Spanish Dutch German Norwegian Swedish PRIVILEGED 7 Our research scope: Comprises 28 ESG Issues in line with key international standards ENVIRONMENT SOCIAL GOVERNANCE Environmental Footprint Community Relations Employee Relations Corporate Governance Global pollution (Climate Human rights abuses and Forced labor Corruption, bribery, change and GHG emissions) corporate complicity extortion, money laundering Local pollution Impacts on communities Child labor Executive compensation issues Impacts on ecosystems and Local participation issues Freedom of association and Misleading communication landscapes collective bargaining Overuse and wasting of Social discrimination Discrimination in Fraud resources employment Waste issues Occupational health and Tax evasion safety issues Animal mistreatment Poor employment conditions Tax optimization Anti-competitive practices Cross-cutting Issues Controversial products and services Products (health and environmental issues) Supply chain issues Violation of national legislation Violation of international standards Note: The 28 RepRisk ESG Issues map the Ten principles of the UN Global Compact PRIVILEGED 8 Our research scope: Also covers 45 Topic Tags – ESG “hot topics” that are specific and thematic Agricultural commodity Abusive/Illegal fishing Alcohol Animal transportation Arctic drilling speculation Automatic and semi- Asbestos Cluster munitions Coal-fired power plants Conflict minerals automatic weapons Depleted uranium Coral reefs Deep sea drilling Diamonds Drones munitions Genetically modified Endangered species Forest burning Fracking Gambling organisms (GMOs) Genocide/Ethnic High conservation Human trafficking Hydropower (dams) Illegal logging cleansing value forests Involuntary Indigenous people Land grabbing Land mines Migrant labor resettlement Mountaintop removal Monocultures Negligence Nuclear power Oil sands mining Palm oil Pornography Predatory lending Privacy violations Protected areas Rare earths Sea-bed mining Soy Tobacco Water scarcity PRIVILEGED 9 Our issue-driven methodology: Systematically captures any company exposed to risks, globally Criteria for selection into the RepRisk database ESG or Risk LINKED: Linked to a (adverse incident, Sector business Country company or criticism, Issue conduct allegation, Topic project accident, NGO issue Case scandal, etc.) PRIVILEGED 10 Artificial and human intelligence translates big data into a powerful due diligence tool Artificial Intelligence Human Intelligence Due Diligence Tool Aggregator Admin RepRisk Platform Risk Big data: incidents Curated 500k news are curated, risk screened and analyzed, research, pre-processed and given a metrics, per day severity and score and analytics summary >>> Daily updates >>> PRIVILEGED 11 Our research output: RepRisk runs the world’s most comprehensive database on ESG risks Global Developed, analysis emerging, frontier Figures grow All sectors and +100,000 +25,000 daily industries companies projects +30-50 per day +10-20 per day Listed, non-listed, Factories, mines, pipelines, state-owned plantations, dams, ports, etc. PRIVILEGED 12 The RepRisk difference: Daily-updated, curated, comprehensive business intelligence Other ESG research providers Outside-in analysis Company-provided info Daily updates Annually, quarterly Listed companies Non-listed companies Little or no coverage Emerging, frontier markets Little or no coverage Project data No Languages 16 languages Few, usually around 5 10+ years of data history No Consistent methodology Often changed over time PRIVILEGED 13 RepRisk selects and defines its ESG research scope in line with key international standards United Nations Global Compact (UNGC) UN Guiding Principles on Human Rights World Bank Group (IFC) Performance Standards World Bank Group Environmental, Health and Safety Guidelines OECD Guidelines for Multinational Enterprises The Equator Principles ILO Conventions United Nations Principles for Responsible Investment (UN PRI) UN Convention Against Corruption Universal Declaration of Human Rights PRIVILEGED 14 Zurich Headquarters RepRisk AG Phone +41 43 300 54 40 Stampfenbachstrasse 42 Fax +41 43 300 54 46 8006 Zurich Switzerland EMEA Hub RepRisk Germany GmbH Rosenthaler Strasse 23 10119 Berlin Germany Americas Hub RepRisk North America Inc. 545 King Street West Toronto ON M5V 1M1 Canada Asia Pacific Hub RepRisk Philippines Inc. Unit 15-02B, 15th Floor Accralaw Tower 30th Street corner 2nd Avenue, Bonifacio Global City Taguig City, Philippines 1630 Email [email protected] Website www.reprisk.com Follow us RepRisk AG, Zurich, Switzerland | www.reprisk.com | RepRisk® is a registered trademark. 15.