ESG risks in emerging economies are particularly difficult to get a handle on through traditional methods. There is always an assurance gap.
N I M B U S cost-effectively reduces the ESG assurance gap by monitoring corporate exposures on the web. It keeps track of thousands of companies and executives, 365 days a year, routinely scanning hundreds of web sites for news reports, allegations and negative opinion. These risk alerts are logged and available to subscribers via our web database or offline reports.
NIMBUS can support you at various stages of your business through the whole cycle of market analysis, due diligence and monitoring.
Our researchers assess and categorise web-scan outputs before posting corporate risk alerts on the NIMBUS web database and reporting directly to subscribers. Thousands of alerts are now available for analysis, to support sourcing, investment and lending decisions, as well as assurance monitoring of portfolios and supply chains.
Supply chains can create value, but they are also carry risks. How do you maintain the right balance? It's not only consumer brands and retailers these days whose reputations can be damaged by ethical allegations in their supply chains. ESG issues can have reputational, legal and financial impacts on major manufacturing, engineering, construction, mining and service companies too.
Supplier codes and audit programmes are good to have, but they can be costly and only ever deliver a snapshot view. N I M B U S Portfolio Monitoring can keep track of thousands of suppliers via the web for a fraction of the cost of typical factory audits. Negative reports or allegations are rated on a risk scale of 1-4 to help you prioritise - keep watch, research, investigate or engage. This provides a very cost-effective way to compliment compliance audits, allowing you to target your resources more effectively and deliver more comprehensive assurance.
With private investors and banks playing an ever growing role in emerging economy development, increased consideration of environmental, social and other governance (ESG) risks is inevitable in financing decisions. These are core business risks, even if you don't formally subscribe to SRI (Socially Responsible Investing). However, most banks, pension funds and other equity investors have little experience, capability or appetite to run monitoring and assurance programmes in this area.
N I M B U S Portfolio Monitoring can provide you with a solid basis to an assurance programme. By delivering regular risk alert reports to your head office, we can provide you with a checklist for cross-referencing against regional customers and investees who may be causing unacceptable environmental or community impacts or are involved in ethical allegations. This allows you to maintain an ethical risk radar and deal with potential problems earlier, before they become a crisis.
Consideration of environmental, health and safety risks and liabilities has long been accepted practice as part of due diligence for mergers and acquisitions. In recent years, particularly in supply chains, pre-contract assessments have widened to include labour issues, community relations and other aspects of responsible business and sustainability.
This invariably depends initially on a self-assessment.
As part of the due diligence process, a N I M B U S Company Check can reveal aspects of past performance which may not otherwise be identified and should be investigated further. N I M B U S Company Check can be expanded with deeper investigations via our regional research networks.
Market analysis has long moved on from consideration of core economic, social and political factors. Sustainability and ethical aspects are now firmly part of the risk profile. This presents a huge challenge in emerging markets, noted for corruption, lack of transparency and poor enforcement of regulations.
N I M B U S Trends Analysis can provide you with a range of outputs to feed into your assessment. These can show trends of ESG risk alerts for sectors and/or countries, identifying what types of ESG issues are most prevalent, with associated risk profiles. Standard analysis of our database can be undertaken online. Alternatively, we can undertake customised offline analyses for you.