ESG assessment

Peer-bench-marked ESG assessments on financial, technology and sustainability parameters that can disrupt long-term sustainability of your portfolio companies, critical suppliers and strategic partners

Risk assessment reports is our flagship research product. In order to ensure in-depth and well rounded assessement of various risks, we assess each company with its peer group on several parameters. These parameters include financial, corporate governance, social responsibility, environmental performance, response to emerging technology, and geopolitical and macroeconomic risks. The outcome of our assessments is delivered in the form of crisp, easy to understand, and peer-benchmarked reports that are appreciated by our clients.

The two differentiating factors that qualify our reports ahead of the other ESG rating or risk assessment providers are:

Integrated peer bench-marking

Comparing apples with oranges does not make a lot of sense. Similarly, comparing ESG performance of a tire manufacturer with that of a wind-shield manufacturer will not make any sense, just because both of them are auto-component manufacturers. To avoid such a scenario, we assess small and comparable groups of companies in tandem. This makes it easier for us to compare and highlight the specific and relative risks that companies within that group face.

A bottom-up approach to ESG assessment

We do not claim to provide ESG ratings on thousands of companies. This is because unlike financial reporting, extra-financial indicators lack standardization both in terms of reporting as well as their impact on different companies. Therefore, we believe that any standardized assessment model aimed at generating a rating for companies across industries and geographies will be self-contradicting. We therefore adopt a bottom-up approach in our assessments. Through this approach, we identify the key risk indicators impacting the peer group, based on the prevailing industry dynamics.

These two factors combine to give a fair and realistic assessment and eliminate exceptions. We use our proprietary CoWaQS (Comparable weight-adjusted quartile scores) methodology to rate these companies within the peer group. The consolidated risk rating is given to each company based on its absolute risk exposure on a particular indicator as well as its performance against peers on that indicator.

We are currently offering risk assessment reports for the following companies:

 

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