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RepRisk AG

Service Providers Framework 2020

You are in Research and Data Provision » Research/process level

Research/process level

RDP 02. Sources for research and/or rating

02.1. Indicate the types of sources you use for research and/or ratings of companies/sectors/geographies or similar. Tick all that apply.

02.2. Indicate how ESG factors are incorporated into your research and/or rating methodology

02.3. Describe how you define materiality and how this is captured in your research and/or rating methodology as well as final product.

          RepRisk’s methodology is issues- and event-driven, rather than company-driven – i.e. RepRisk screens sources and stakeholders for ESG risk incidents, in accordance with the RepRisk research scope, not a defined list of companies. This means that RepRisk offers universal coverage – i.e. RepRisk captures any company exposed to ESG risks, regardless of the company’s size, sector, country of headquarters or operations, or whether the company is listed or non-listed.

RepRisk’s core research scope is comprised of 28 ESG Issues that are broad, comprehensive, and mutually-exclusive. The 28 Issues drive the entire research process, as every risk incident in RepRisk’s ESG Risk Platform is linked to at least one of these Issues. When RepRisk screens the sources and stakeholders, it screens for any company or project linked to these Issues. The Issues were selected and defined in accordance with the key international standards related to ESG issues and business conduct, such as the World Bank Group Environmental, Health, and Safety Guidelines, the IFC Performance Standards, the Equator Principles, the OECD Guidelines for Multinational Enterprises, the ILO Conventions, and more. In addition, the Ten principles of the UN Global Compact can be specifically mapped to RepRisk’s 28 Issues.
Furthermore, RepRisk covers 58 Topic Tags, ESG “hot topics” and themes that are an extension of RepRisk’s core research scope of 28 ESG Issues. Topic Tags are specific and thematic, and one Topic Tag can be linked to multiple ESG Issues. They are a dynamic concept, with the list expanding over time in response to client feedback and emerging trends.
        

02.4. Additional information. [OPTIONAL]

RepRisk screens, on a daily basis, over 90,000 public sources and stakeholders in 20 languages. These include print media, online media, social media including Twitter and blogs, government bodies, regulators, think tanks, newsletters, and other online sources. These sources range from the international to the regional, national, and local level.

RepRisk believes it is important to look at performance, not just policies. Therefore, RepRisk takes an outside-in approach to assessing a company: Its research captures and analyzes information from media, stakeholders, and other public sources external to a company. This perspective helps to assess whether a company’s policies and processes are translating into actual performance on the ground. In essence, RepRisk acts as a “reality check” of a company’s business conduct. For example, a company may have a human rights policy, but what do stakeholders and sources at the local level report about how this company is handling human rights issues?


RDP 03. Stakeholder input

03.1. Describe how you actively include input and information, wherever possible, from relevant stakeholders or interested parties, in the research process or in reaching assessment conclusions.

          Born out of credit risk management, the purpose of RepRisk’s dataset is not to provide ESG ratings, but to systematically identify and assess material ESG risks. We have always taken an outside-in approach to ESG risks, by analyzing information from public sources and stakeholders and intentionally excluding company self-disclosures. It is now well-accepted that self-reported information is not reliable data – especially when it comes to risks. RepRisk screens, on a daily basis, over 90,000 public sources and stakeholders in 20 languages. These include print media, online media, social media including Twitter and blogs, government bodies, regulators, think tanks, newsletters, and other online sources. These sources range from the international to the regional, national, and local level. The data is further curated by a team of human analysts and according to RepRisk's rules-based methodolgoy.
        

03.2. Additional information. [OPTIONAL]


RDP 04. Up-to-date assessment and ratings

04.1. Indicate how you ensure that your ESG assessment of companies/ sectors/ geographies or similar is up-to-date and that new information is incorporated or new assessments are conducted at reasonable intervals.

04.2. Additional information. [OPTIONAL]

RepRisk screens its sources on a daily basis. Using an event- and issues-driven research approach, RepRisk captures and analyzes new risk information every day, allowing risk metrics and ESG analysis to update and recalculate whenever new information is published. The company also issues alerts to clients in case companies of their interest are involved in any sort of risk incident or criticism related to ESG.


RDP 05. Balanced research and assessment

05.1. Indicate how you typically ensure a balanced approach to your research methodology and assessing/rating of companies/sectors/geographies or similar. Tick all that apply and explain your approach to each option.

Type of indicators
          RepRisk research scope is based on 28 ESG Issues, derived from key international standards.
        

Explain your approach

          Our research focuses on analyzing data external to a company. All companies are being assessed following the same methodology and cannot influence their ratings. RepRisk follows a strict, rules-based research process that helps ensure consistent data over time.
        

05.2. Additional information. [OPTIONAL]

For more information, please visit https://www.reprisk.com/approach.


RDP 06. Consistency and comparability

06.1. Describe the control processes in place to ensure quality of research.

          Quality is of the utmost importance to RepRisk and there are multiple systems and processes in place to ensure our high-quality standards. Quality assurance has the highest impact on the service delivered to RepRisk clients in two key areas: (1) RepRisk Operations and Research and (2) RepRisk Product Development and Information Technology. These quality measures in place for both areas is further outlined below. In addition, RepRisk plans to achieve ISO 9001 certification of its quality management system.

RepRisk Operations and Research assures consistency and accuracy of the entered news items through three main measures:

Proprietary, rule-based research process
Comprehensive and continously improved Analyst Manual
Quality of the RepRisk analyst team
Quality in Product Development and Information Technology refers to two important aspects: firstly, providing RepRisk’s external and internal clients with services and tools which are reliable, efficient, secure, and maintainable, and secondly, assuring the stable operations of the underlying technology platform with minimum downtime or service degradation.

RepRisk Product Development and Information Technology assures high quality standards with four key measures:

Standard software development process with strict quality gates
Stable IT operations including automated monitoring solutions
Documentation of all standard procedures and regular risk assessments
Sound data and IT security setup
        

06.2. Additional information. [OPTIONAL]


RDP 07. Emerging ESG issues and trends (Private)


RDP 08. Client use of outputs (Private)


RDP 09.


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