RepRisk, a global technology firm specializing in business conduct and ESG risk transparency, has introduced its latest data solution: Due Diligence Scores. These scores represent the next generation of ESG risk management by evaluating specific risk factors, such as biodiversity and human rights, on a scale from 0 (low risk) to 100 (high risk). This allows for a swift and precise assessment of a company’s risk profile. The disaggregated scores enable decision-makers to identify areas of high and low exposure, facilitating targeted risk management. These industry-first thematic scores are now accessible to all RepRisk Data Feed clients.
Clients can choose from various pre-packaged options or customize their own from over 200 individual scores to match their specific risk priorities. These scores cover individual ESG pillars (environmental, social, or governance), frameworks and regulations such as SDG, SASB, SFDR, the German Supply Chain Act and Modern Slavery acts, and specific issues including human rights, biodiversity, climate, and greenwashing.
A recent RepRisk report on the S&P 500® reveals that companies exhibit different levels of risk across ESG pillars, with higher risks often concentrated in a specific area rather than evenly distributed across all three pillars. In light of increasing regulatory requirements, such as the EU’s Corporate Sustainability Due Diligence Directive (CSDDD), investors and companies are relying more on detailed and timely data to ensure compliance. These regulations mandate due diligence and risk management processes, pushing companies to move beyond annual sustainability disclosures towards proactive management of sustainability issues and risks. By adopting this proactive approach, investors and companies not only achieve regulatory compliance but also safeguard value for shareholders, stakeholders, the environment, and society at large.
