RepRisk provides UBS with data at offices worldwide to help systematically identify environmental and social risks and manage due diligence processes
Zurich, January 24, 2012 – RepRisk has today announced that it is providing environmental, social and corporate governance (ESG) data to be used by UBS to enhance risk management and control in onboarding and transaction due diligence.
The UBS compliance database will now also incorporate RepRisk’s comprehensive environmental and social risk information on controversial companies. The bank will use the information on a global scale for client vetting within all divisions, including Wealth Management and Swiss Bank, Global Asset Management and the Investment Bank. RepRisk data will be used in the onboarding process to screen potential new clients and suppliers, as well as for periodic client review processes and to check on risks related to transactions.
This stemmed in part from UBS’ decision in 2010 to further strengthen its environmental and social risk management (including human rights) by identifying controversial areas in which it will not do business, or where it will conduct limited business only under strict pre-established guidelines. The bank has committed to ensuring it will not knowingly provide financial services, nor source from suppliers where the primary commercial activities or their proceeds may involve risks related to key environmental and social issues. This includes activities that pose severe environmental risks such as illegal logging and palm oil production, as well as social risks such as harm to indigenous communities or forced labor.
“RepRisk has been a trusted business intelligence partner of UBS for 5 years. The integration of this data into our existing compliance and risk processes is a key component in the systematic implementation of UBS' environmental and social risk standards and will help ensure that our due diligence processes are comprehensive and standardized at a global level,” said Liselotte Arni, Head of Environmental and Social Risk at UBS.
RepRisk draws from thousands of third party sources including print media, government sites, NGOs, think tanks, as well as other independent websites, newsletters and blogs. On a daily basis, it detects environmental, social and corporate governance criticism about companies and projects in 13 languages.
Commenting on the announcement, Philipp Aeby, CEO of RepRisk said: “We are pleased to be an integral part of this positive new step for UBS. UBS has recognized the importance of our ESG data for the purposes of reducing exposure to reputational, ethical and financial risks in their business relationships and financing decisions. This change in delivery, integrating our data seamlessly into UBS’ existing workflows and processes provides critical ESG intelligence for improved decision-making and compliance. In integrating RepRisk’s highly current information across its global departments, UBS has brought the concept of risk and compliance tools within banks to a new level.”
Media Contact:
Alessandra Oglino
RepRisk AG
+41 43 300 54 48
oglino@reprisk.com
About RepRisk:
RepRisk is the leading provider of dynamic business intelligence on environmental, social and governance risks. Our analysts focus on monitoring issues meaning that RepRisk’s business intelligence allows you to identify and assess the environmental, social and governance issues which may present financial, reputational, and ethical risks across an unlimited universe of companies and projects.
It can be used by Boards of Companies, Chief Executive Officers, Chief Risk Officers, Chief Investment Officers, Heads of Legal and Directors of Marketing for strategic risk management. Tactically, it can be used by investment professionals, financial institutions, public policy communications teams, supply chain managers, and compliance managers to manage and mitigate risk in their daily operations. The RepRisk application includes a variety of features enabling clients to monitor risk trends over time, create customized watch lists, tailor alert services, and more. The RepRisk tool plays an integral role in financial risk management, enterprise reputation risk management and compliance with internal and international standards.
RepRisk covers all major business languages and its database currently includes over 22,000 companies, 5,000 projects, 3,900 NGOs and 3,400 governmental bodies. It is updated continuously and the number of entities is growing daily.
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