Company type | Private |
---|---|
Industry | Investment research, ESG risk analytics |
Founded | 1998 [1] |
Headquarters | Zurich, Switzerland [1] |
Number of locations | 4 |
Key people | Dr. Philipp Aeby (CEO) |
Website | http://www.reprisk.com |
RepRisk AG is an environmental, social, and corporate governance (ESG) data science company based in Zurich, Switzerland, specializing in ESG and business-conduct risk research, and quantitative solutions. [2] [3] [4]
The company runs an online due-diligence database that allows clients to monitor and assess the risk exposure of companies, infrastructure projects, sectors, and countries related to 28 ESG issues. [5] [6] [7] The issues are mapped to the 10 principles of the UN Global Compact, [8] the Sustainability Accounting Standards Board (SASB) Materiality Map, [9] and the United Nations Sustainable Development Goals (SDGs). [10]
On a daily basis, RepRisk assesses ESG risks such as environmental degradation, human rights abuses, child labor, forced labor, fraud, and corruption that can impact an organization's reputation, financial profitability, or lead to compliance issues. [3] [4] [11] [12] [13] [14] [15] Financial institutions and corporations use RepRisk to prevent and mitigate ESG and business conduct risks related to their operations, business relationships, and investments. [16]
The RepRisk database systematically identifies ESG risks by analyzing over 100,000 sources per day [17] in 20 major business languages. [18] [19] As of July 2020, the database covered more than 150,000 public and private companies, [20] and over 40,000 infrastructure projects [21] reported to have links to ESG risks, [22] as well as ESG risks related to all countries and 34 different sectors. [23] It also includes data on ESG issues and topics, over 20,000 NGOs, and over 15,000 governmental bodies. [24]
RepRisk was formed in 1998 [1] as ECOFACT, [25] 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 UBS, and in 2010, RepRisk split from the consultancy and became an independent company. [22]
RepRisk screens, on a daily basis, over 100,000 public sources and external stakeholders, including international and local print and online media, news websites, newsletters, NGOs, governmental bodies, think tanks, blogs and Twitter, [11] in 20 major business languages. [24] [19] This screening identifies companies and projects linked to ESG-related risk. RepRisk monitors 28 ESG issues (for example local pollution, child labor or tax evasion) and 67 topic tags, [26] or "hot topics" (such as palm oil, arctic drilling, indigenous people, coal, or water scarcity). [4] [27] [28] The research scope is defined in accordance with international standards and norms, such as the ten principles of the United Nations Global Compact (UNGC) [4] [29] [30] and Sustainability Accounting Standards Board (SASB). [9] [26]
To achieve consistent data over time, RepRisk's database uses strict, rules-based processes that incorporate both artificial intelligence and machine learning with human intelligence. [26] [31] The following steps outline the high level RepRisk screening process: [22]
The RepRisk Index (RRI) is a proprietary algorithm that dynamically captures and quantifies the reputational exposure to ESG and business conduct risks. [33] The RRI is a quantitative measure ranging from 1 (lowest) to 100 (highest). [34]
Companies that have been exposed to higher levels of criticism in the past are less sensitive to new adverse events and 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. [35] [36]
A current RRI value indicates the current media and stakeholder exposure. The Peak RRI is an overall risk exposure indicator that indicates the highest level of criticism over the past two years. [37]
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. [38]
The RepRisk Rating (RRR) is a letter rating (AAA to D) and is similar to a credit rating. [25] It facilitates benchmarking and ESG integration. Available only to companies, it combines a company’s own ESG risk exposure with the ESG risk exposure of the countries and sectors in which the company has been exposed to risks. Both the Rating and the RRI are updated daily for all companies in the database. [23] [36] [39]
This indicator identifies companies with a high potential risk of violating one or more of the ten UNGC Principles. The flag allows users to see if the UNGC violations are primarily linked to the operations or to the supply chain of a company. [40] [41]
This article needs additional citations for verification .(July 2019) |
RepRisk data is available in various formats and products and is searchable online: [79]
Since 2013, RepRisk releases a yearly ranking of the top ten most controversial companies in the world, related to ESG issues. [80] [81] The ranking is based on the companies that have the highest RRI over a particular year. [82]
Since 2013, RepRisk releases a yearly ranking of the top ten most controversial projects in the world, related to ESG issues. [80] The ranking is based on the projects that have the highest RRI over a particular year. [93]
Rank | 2013 | 2014 [94] | 2015 [95] | 2016 [96] | 2017 [97] | 2018 [98] |
---|---|---|---|---|---|---|
1 | Rana Plaza | Kunshan Zhongrong Metmmigration Factory | Rajput Polyester Factory | Fengcheng Power Plant Phase 3 | Grenfell Tower | Winter Cherry Trade and Leisure Center |
2 | Pegasus Pipeline | Buenavista del Cobre Mine (Cananea Mine) | Valenzuela Slipper Factory | Hong’ao Landfill (Hong Ao Landfill; Hongao Construction Waste Dump) | Ctrip Day Care Center | Sanchi Tanker |
3 | Big Gossan Mine | Soma Komur Isletmeleri Mine | Vostochnyi Spaceport (Vostochny Kosmodrom) | ETP Crude Pipeline Project (Bakken pipeline; Dakota Access Pipeline) | Fu Yuan Lu Leng 999 Vessel | Craon Celia Factory |
4 | Four Rivers Refurbishment Project | Abbot Point Port Expansion | Tia Mia Gold Mining Project | Aliso Canyon Natural Gas Storage Facility | Brook House Immigration Removal Centre | Polokwane Factory |
5 | Fukushima Daiichi Nuclear Power Plant | Mauna Ocean Resort | Angra 3 Nuclear Reactor | Sports Direct Shirebrook Warehouse | Nord Stream 2 gas pipeline | One Belt One Road Initiative |
6 | Foxconn Zhengzhou Technology Park | 2022 FIFA World Cup | Hpakant Gyi Jade Mine / Carmichael Coal Mine / Rail Project (Galilee Basin Project) | Petroquimica Mexicana de Vinilo (PMV) Plant | JalabiyaCement Works | Patel Dam |
7 | Gyama Polymetallic Mine | Mount Polley Mine | Ilha Pura Olympic Village | Agua Zarca Hydroelectric Project | OPL 245 Oil Block | Hyde County Farm |
8 | Mtwara Dar es Salaam Pipeline | Qingdao Port | Long Lake Oil Sands Project | Tongi Packaging Plant (Tampaco Foils) | Changwon Jinhae Shipyard | Tuticorin Copper Smelter Plant |
9 | Rustenburg Chrome Mine | Moscow Metro | Formosa Fun Coast Water Park | Angra dos Reis Nuclear Complex (Almirante Alvaro Alberto Nuclear Complex) / Jinshangou Coal Mine | Guangzhou No 7 Thermal Power Plant | Ituango Hydroelectric Power Project |
10 | San Jose del Progreso Gold and Silver | Dan River Steam Station | Grand Mosque Expansion Project | Imperial Pacific Resort Hotel | Barcarena Alumina Refinery |
Selected RepRisk partner list. [114]
Antea Group [114] | Carbon Disclosure Project (CDP) [115] | Crux Informatics [75] | J.P. Morgan [116] | Word Resources Institute (WRI) [117] |
Apex [118] | Corporate Excellence [115] | FTSE Russell [119] | The Japan Research Institute [115] | Wharton Research Data Services (WRDS) [120] research platform at the Wharton School. |
AWS Data Exchange [121] | Corporate Knights [115] | FactSet [122] | Sustainability Accounting Standards Board [119] | |
Battlefin [123] | CQI | IRCA [115] | GEC Risk Advisory [115] | S&P Dow Jones Indices [119] | |
Bureau Van Dijk [124] | Colrporate Human Rights Benchmark [125] | ICE Data Services [126] | UN's Principles for Responsible Investment Initiative [115] |
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