BISA Seminar: “Firm-level ESG Risk Assessment: Identifying and quantifying how companies take into account and manage material ESG risks”

Abstract

Under increasing regulatory and market pressure worldwide, assessing firm-related ESG and climate risk management practices requires consistent and comparable metrics. Despite rapid growth in available underlying data, limitations continue to impact company coverage, reported data quality, assessment consistency, and infrequent updates.

In this conference we’ll present complementary methodologies for quantifying ESG risks and opportunities for large corporations and SMEs. ESG risk assessment can be assigned through direct in-depth company evaluation. However, when company information is missing quantitative models can be used to predict ESG risks.

We will address the following topics:

• Adequate methodologies for different types of companies to ensure full portfolio coverage
• Firm-level performance across geographies, sectors and company types and its evolution
• Case studies to analyse the value of the proposed approach, helping identify pockets of risk exposures across diversified portfolios

The findings can be leveraged for credit decisioning and monitoring, supply-chain risk assessment, investment allocation and overall ESG strategies and risk appetite.