RepRisk, a tech firm that provides transparency on business conduct and ESG risks, launched its newest product: Due Diligence Scores.
RepRisk, known for its advanced data solutions in assessing ESG risks, aims to revolutionise the way companies monitor and manage their risk profiles.
The introduction of Due Diligence Scores comes as a response to the growing demand from banks, investors, and businesses for accessible and efficient thematic risk metrics. These scores are designed to streamline due diligence processes, aiding in financing or investment decisions, supplier engagement, and operational expansion.
RepRisk specialises in providing data-driven insights into ESG risks, helping organisations understand and mitigate potential issues related to environmental, social, and governance factors. Their solutions are integral to businesses seeking to uphold ethical standards and ensure compliance with various regulatory frameworks.
The newly launched Due Diligence Scores assess specific risk factors, such as biodiversity and human rights, on a 0 (low risk) to 100 (high risk) scale. This targeted approach enables a swift and focused evaluation of a company’s risk profile, allowing decision-makers to identify and address areas of high exposure.
In addition to the standardised packages available, clients have the flexibility to customise their own set of scores from over 200 individual metrics. These metrics align with various ESG pillars, frameworks, and regulations, including SDG, SASB, SFDR, the German Supply Chain Act, and Modern Slavery acts. This comprehensive coverage ensures that organisations can tailor their risk assessment to their specific priorities and regulatory requirements.
A recent report by RepRisk highlights that within the S&P 500®, companies exhibit varying levels of risk across different ESG pillars, with higher risks often concentrated in specific areas rather than uniformly distributed across all three pillars. This insight underscores the importance of targeted risk assessment tools like the Due Diligence Scores.
“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,” commented Alexandra Mihailescu Cichon, Chief Commercial Officer at RepRisk. “With RepRisk Due Diligence Scores, organisations 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.”
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