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RepRisk Introduces Industry-First Thematic Due Diligence Scores for Enhanced Risk Monitoring

RepRisk Introduces Industry-First Thematic Due Diligence Scores for Enhanced Risk Monitoring

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Pioneering technology company becomes first data provider to offer full suite of transparent and off-the-shelf risk scores for due diligence as businesses prepare for regulation

RepRisk, a global technology company that provides transparency on business conduct and ESG risks, announced the newest addition to its suite of data solutions: Due Diligence Scores. Ushering in the next generation of ESG risk management, the scores assess specific risk factors such as biodiversity and human rights on a 0 (low risk) to 100 (high risk) scale, empowering a fast and focused assessment of a company’s risk profile. Recognizing that companies may have low exposure in some areas while facing higher exposure in others, disaggregated scores empower decision-makers to pinpoint risk where it matters. These industry-first thematic scores are now available to all RepRisk Data Feed clients1.

For a long time, banks, investors, and businesses have been searching for readily deployable thematic risk metrics to streamline their due diligence processes when making financing or investment decisions, engaging new suppliers, or expanding operations,” commented Alexandra Mihailescu Cichon, Chief Commercial Officer at RepRisk. “With RepRisk Due Diligence Scores, organizations of all sizes and scopes now have easy access to transparent, off-the-shelf metrics that allow for targeted assessment of risk factors that are material to them.

Clients can select from a range of ready-to-use packages or customize their own set from 200+ individual scores to align with their specific risk priorities. The scores comprise individual ESG pillars (environmental, social, or governance), frameworks, and regulations such as SDG, SASB, SFDR, the German Supply Chain Act and Modern Slavery acts, and specific issues, ranging from human rights and biodiversity to climate and greenwashing.

Within the S&P 500®, a recent report by RepRisk shows, companies have varying degrees of risk across different ESG pillars, as illustrated in the graphic below. Higher levels of risk are typically concentrated in one specific area rather than across all three pillars.

The 100 most risk-exposed companies in the S&P 500 experience varying levels of risk exposure across the E, S, and G pillars. Each stripe represents a single company. The companies have been grouped by sector.

Related Article: Diligent Reports Over 75% of U.S. Companies Recognize Climate Change as a Material Risk

With the tailwind of expanding regulatory requirements, most recently EU’s Corporate Sustainability Due Diligence Directive (CSDDD), investors and companies rely increasingly on granular and timely data2 to ensure compliance. Regulations increasingly require companies to implement due diligence and risk management processes – moving beyond annual disclosures of sustainability data, towards proactive management of sustainability issues and risks. Investors and companies that take a proactive approach to this paradigm shift not only benefit by ensuring regulatory compliance but also preserve value for their shareholders and stakeholders, as well as the environment and society at large.

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