Headquarters Zürich, Switzerland Type of business Private | Founded 1998 Key person Philipp Aeby | |
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Reprisk esg risk platform
RepRisk AG is an environmental, social and corporate governance (ESG) research provider headquartered in Zurich, Switzerland.
Contents
- Reprisk esg risk platform
- Reprisk intro movie
- History
- Research scope and process
- RepRisk Index RRI
- Data products and services
- Annual Most Controversial Companies Report
- Annual Most Controversial Projects Report
- Additional reports
- Research
- Partners
- Awards
- References
The company runs an online searchable database on the risk exposure of companies, projects, sectors and countries related to ESG issues. It methodically assesses on a daily basis the risks, allegations, and criticism related to issues such as environmental degradation, human rights abuses and corruption that can impact an organization's reputation, financial profitability or lead to compliance issues. The database is used by financial institutions and corporations as a risk research and monitoring tool.
The database includes as of November 2015 over 60,000 companies and 15,000 projects reported to have links to ESG risks. The database also analyzes ESG risks related to sectors and countries. It also includes data on ESG issues and topics, over 10,000 NGOs, and over 8,000 governmental bodies.
Reprisk intro movie
History
RepRisk was formed in 1998 as ECOFACT, a Zurich-based environmental and social risk consultancy focused on the financial sector. In 2006, its ESG risk database was created at the request of a banking client. In 2010, RepRisk split from the consultancy and became an independent company.
Research scope and process
RepRisk screens on a daily basis about 80,000 third-party sources and external stakeholders, including print and online media, news websites, newsletters, NGOs, governmental bodies, think tanks, blogs and Twitter, in 15 languages. his screening is done to identify companies and projects that have been linked to ESG-related risk events. RepRisk monitors 28 ESG issues (for example local pollution, child labor or tax evasion) and 39 topic tags, or "hot topics" (such as palm oil, Arctic drilling, indigenous people, coal, or water scarcity). The research scope is defined in accordance with international standards and norms, such as the ten principles of the United Nations Global Compact (UNGC).
The analysis process has five steps. After the screening of the sources, the relevant items are identified and filtered. An analyst then studies the news to define the severity and novelty of the event, and the source of the information. The relevant entities such as companies, projects, sectors, and countries, are linked to the risk event and a summary is written. After that, the news undergo a quality check. The final step is the quantification of the risk event before the data is added to the database, the RepRisk ESG Risk Platform. The quantification is done through the RepRisk Index (RRI) (see next section).
RepRisk Index (RRI)
The RepRisk Index (RRI) is a proprietary algorithm that quantifies a company's exposure to ESG risks. The RRI does not measure reputation, but is an indicator of reputational risk related to ESG issues.
A company's RRI score can range from zero (lowest) to 100 (highest) and the higher the value of the score, the higher the risk exposure. Companies that have been exposed to higher levels of criticism in the past are less sensitive to new allegations, in comparison to a company that experiences a first-time incident. If a company does not experience new criticism, their score will eventually drop to zero over a maximum period of two years.
A Current RRI value indicates the current media and stakeholder exposure of a company, project, sector or country, whereas a Peak RRI is an overall risk exposure indicator that indicates the highest level of criticism over the past two years.
The RRI score is calculated based on a number of factors, including the influence of the source of the information, the frequency and timing of criticisms, and the novelty and severity of the criticism.
Data products and services
RepRisk data is available in various formats and products. The ESG Risk Platform is RepRisk's online searchable database for ESG risks related to companies, projects, sectors, and countries. The database is used by financial institutions and corporations as a risk research and monitoring tool. As of November 2015, the database includes over 60,000 publicly traded and privately held companies and 15,000 projects reported to have links to ESG risks. The database also analyzes ESG risks related to sectors and countries. It also includes data on ESG issues and topics, over 10,000 NGOs, and over 8,000 governmental bodies.
It is also possible to access RepRisk data via data feeds, exports of quantitative data which can be tailored and which are integrated into other systems and processes. These are used to screen and monitor large sets of data in areas such as banking, underwriting, asset management, and supply chain.
RepRisk Company Reports are PDF reports that outline the ESG and reputational risks for a single company. They are available for purchase via an online shop.
Supplier Monitoring Reports and Portfolio Monitoring Reports are also available. These are PDF reports provided on a monthly or quarterly basis that identify companies in a supplier list or investment portfolio that are most exposed to ESG risks and are most likely to violate internal policies, ethical guidelines, or international standards.
Annual Most Controversial Companies Report
RepRisk releases a yearly ranking of the top ten most controversial companies in the world, related to ESG issues. The ranking is based on the companies that have the highest RRI over a particular year.
Annual Most Controversial Projects Report
Since 2013, RepRisk releases a yearly ranking of the top ten most controversial projects in the world, related to ESG issues. The ranking is based on the projects that have the highest RRI over a particular year.
Additional reports
Research
Partners
In September 2015, it was announced that RepRisk entered into a strategic partnership with Institutional Shareholder Services (ISS) in order to serve asset managers and asset owners.
In October 2015, it was announced that RepRisk's data had been made available for research purposes to universities through a partnership with the Wharton Research Data Services (WRDS) research platform at the Wharton School.
RepRisk data is in part available through financial data distribution providers such as FactSet, Interactive Data Corporation, SIX Financial Information, and SunGard.