ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. data science company RepRisk announced today the launch of Due Diligence Scores, a new solution aimed at enabling investors and businesses to pinpoint specific company ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. risks across a broad range of themes.
According to RepRisk, the new solution comes as investors and companies are facing an expanded set of regulatory requirements to implement sustainability-related due diligence and risk management processes, such as the EU’s recently adopted Corporate Sustainability Due Diligence Directive (CSDDD), requiring increasingly granular and timely data to ensure compliance.
The new solution aims to address this need by providing disaggregated ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. scores, assessing specific risk factors such as biodiversity and human rights, recognizing that companies may have low exposure in some areas while facing higher exposure in others.
The new scores measure companies’ compliance risk related to ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. issues across a broad range of factors, assessing risk for each on a 0-100 scale. The solution quantifies risk by considering factors including the observed frequency and magnitude of incidents. The new scores are informed by RepRisk’s ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. risk database, which covers more than 260,000 companies globally, with data created through a combination of AI and human curation, and powered by a daily screening of more than 2,000,000 documents from over 100,000 sources in 23 languages
The Due Diligence Scores enable users to select from a range of ready-to-use packages or customize their own set from more than 200 individual scores to align with their specific risk priorities, with scores comprising individual E, S, and G pillars, specific frameworks and regulations such as SDG, SASB, SFDR, the German Supply Chain Act and Modern Slavery acts, as well as and specific issues, ranging from human rights and biodiversity to climate and greenwashing.
Alexandra Mihailescu Cichon, Chief Commercial Officer at RepRisk, said:
“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. 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.”