Comprehensive and Customisable ESG Risk Assessment
ESG Intelligence can provide comprehensive and customisable ESG risk assessment reports. These reports can be extremely useful for investment managers, who are looking to integrate ESG research into their invesment strategy. At the same time, corporations will find these reports useful in understanding the risk exposure of their critical suppliers and partners.
How do we ensure comprehensiveness?
Our risk assessment reports are different from the other ESG rating providers, because we focus on risk and not the rating. This means that we evaluate the performance of the company on each indicator with an objective of understanding the risk implications. To achieve this, we go beyond comparing the company reported information with a standardised set of questions. We have introduced two additional steps which differentiate our assessments and bring additional value for our clients.
- Peer-comparison on each risk indicator: For each indicator, we compare the performance of the company with its closest peers and conduct a gap analysis. For every company we assess, we atleast select two peers to benchmark the performance, however, clients can choose up to two more peers to make the comparison more comprehensive.
- Setting the context, or the ‘so what’ analysis: At the same time, we also research third-party sources to deliver a comprehensive analysis of the performance on those indicators. These third-party sources can include industry and thematic reports, whitepapers, interviews and surveys of senior managements and researchers, among others.
Example: While assessing board independence of the company, we will check whether the company has adequate percentage of independent directors and whether the directors meet the requirements stipulated by regulators. However, we will also two steps further, to bring our additional value for our clients. We will look at the board independence percentages and quality of directors at atleast two peers of the company, and present a comparative analysis. We will also conduct an open search on what consulting firms, academic institutions and other investors have been saying about the board independence standards in that country and industry, to give a deeper perspective to our clients.
How can you customise your assessment reports?
Another differentiator for our ESG risk assessment reports is that they are entirely customisable. We have divided the company’s risk exposure into 20 risk areas which comprehensively address 360 degree risk-exposure of the company. We prepare a separate assessment report for each of these risk areas, so that the clients can easily consume that research.
Clients have an option of choosing any number of risk areas to be included in their assessments for each company. We can also prioritize the delivery of risk area assessments according the client’s preference.
The delivery of research is done through our platform, where we maintain a dashboard of each company. All the risk area assessments for a company can be accessed by the client anytime from that dashboard, which also gives the summary of risk exposure and key considerations to the client.
- Environmental management framework
- GHG emission management
- Energy and water conservation
- Waste and biodiversity management
- Product and supply-chain management
- Employee rights and practices
- Employee benefits and training
- Employee engagement, health and safety
- Supplier engagement and responsibility
- Customer and CSR management
- Ethical and compliance framework
- Information security and business continuity
- Transparency and shareholder engagement
- Corporate governance framework
- Board structure and effectiveness
- Financial ratio analysis
- Revenue and cost analysis
- Executive management analysis
- Macroeconomic risk analysis
- Regulatory risk analysis