Verisk Maplecroft launches investor solution mapping global risk exposure of public companies across 4M+ corporate assets
Verisk Maplecroft (Nasdaq: VRSK) has launched Asset Risk Exposure Analytics (AREA), a new data solution assessing location-specific risks to assets of over 50,000 publicly traded companies. AREA combines locations of 4 million+ corporate assets with geospatial risk data, featuring 85 individual risk issues mapped to subnational levels. The solution covers 18 political risks, 30 human rights issues, 18 climate hazards, and 19 environmental risks.
AREA aims to reveal hidden vulnerabilities and strengths in global operations of publicly listed firms, providing investors with a comprehensive view of corporate exposure to global climate, environmental, human rights, and political risks. The data is available through an API and is applicable to all equity investing, including sustainable and impact finance.
Verisk Maplecroft (Nasdaq: VRSK) ha lanciato Asset Risk Exposure Analytics (AREA), una nuova soluzione dati che valuta i rischi specifici per localizzazione degli asset di oltre 50.000 aziende quotate in borsa. AREA combina le posizioni di oltre 4 milioni di asset aziendali con dati di rischio geospaziale, presentando 85 problematiche di rischio individuali mappate a livelli subnazionali. La soluzione copre 18 rischi politici, 30 questioni sui diritti umani, 18 pericoli climatici, e 19 rischi ambientali.
AREA ha lo scopo di rivelare vulnerabilità e punti di forza nascosti nelle operazioni globali delle aziende quotate, fornendo agli investitori una visione complessiva dell'esposizione aziendale ai rischi globali climatici, ambientali, per i diritti umani e politici. I dati sono disponibili tramite un'API e sono applicabili a tutti gli investimenti azionari, inclusi quelli sostenibili e di impatto.
Verisk Maplecroft (Nasdaq: VRSK) ha lanzado Asset Risk Exposure Analytics (AREA), una nueva solución de datos que evalúa los riesgos específicos de ubicación para los activos de más de 50,000 empresas que cotizan en bolsa. AREA combina las ubicaciones de más de 4 millones de activos corporativos con datos de riesgo geoespacial, presentando 85 cuestiones de riesgo individuales mapeadas a niveles subnacionales. La solución cubre 18 riesgos políticos, 30 problemas de derechos humanos, 18 peligros climáticos y 19 riesgos ambientales.
AREA tiene como objetivo revelar vulnerabilidades y fortalezas ocultas en las operaciones globales de las empresas cotizadas, proporcionando a los inversores una visión completa de la exposición corporativa a los riesgos climáticos, ambientales, de derechos humanos y políticos globales. Los datos están disponibles a través de una API y son aplicables a todas las inversiones de capital, incluidas las finanzas sostenibles y de impacto.
Verisk Maplecroft (Nasdaq: VRSK)는 자산 리스크 노출 분석(AREA)을 출시했습니다. 이 새로운 데이터 솔루션은 50,000개 이상의 상장 회사 자산에 대한 특정 위치의 리스크를 평가합니다. AREA는 400만 개 이상의 기업 자산의 위치와 지리적 리스크 데이터를 결합하여, 85개의 개별 리스크 이슈를 지방 수준까지 매핑합니다. 이 솔루션은 18 가지 정치적 리스크, 30 가지 인권 문제, 18 가지 기후 위험, 19 가지 환경 위험을 포함합니다.
AREA는 상장 기업의 글로벌 운영에서 숨겨진 취약성과 강점을 드러내어 투자자에게 기후, 환경, 인권 및 정치적 리스크에 대한 종합적인 기업 노출 정보를 제공합니다. 데이터는 API를 통해 이용 가능하며 지속 가능한 금융 및 임팩트 금융을 포함한 모든 주식 투자에 적용 가능합니다.
Verisk Maplecroft (Nasdaq: VRSK) a lancé Asset Risk Exposure Analytics (AREA), une nouvelle solution de données évaluant les risques spécifiques à une localisation pour les actifs de plus de 50 000 entreprises cotées en bourse. AREA combine les emplacements de plus de 4 millions d'actifs d'entreprise avec des données de risque géospatial, présentant 85 enjeux de risque individuels cartographiés à des niveaux subnationaux. La solution couvre 18 risques politiques, 30 problématiques de droits humains, 18 dangers climatiques et 19 risques environnementaux.
AREA vise à révéler les vulnérabilités et les forces cachées dans les opérations mondiales des entreprises cotées, offrant aux investisseurs une vue d'ensemble de l'exposition des entreprises aux risques climatiques, environnementaux, des droits humains et politiques à l'échelle mondiale. Les données sont disponibles via une API et sont applicables à tous les investissements en actions, y compris les finances durables et d'impact.
Verisk Maplecroft (Nasdaq: VRSK) hat Asset Risk Exposure Analytics (AREA) eingeführt, eine neue Datenlösung, die standortspezifische Risiken für die Vermögenswerte von über 50.000 börsennotierten Unternehmen bewertet. AREA kombiniert die Standorte von über 4 Millionen Unternehmensvermögen mit geospatialen Risikodaten und bietet 85 individuelle Risikoaspekte, die auf subnationalen Ebenen abgebildet sind. Die Lösung deckt 18 politische Risiken, 30 Menschenrechtsfragen, 18 Klimarisiken und 19 Umweltrisiken ab.
AREA zielt darauf ab, verborgene Verwundbarkeiten und Stärken in den globalen Operationen börsennotierter Unternehmen aufzudecken und Investoren einen umfassenden Überblick über die Exposition der Unternehmen gegenüber globalen Klima-, Umwelt-, Menschenrechts- und politischen Risiken zu bieten. Die Daten sind über eine API verfügbar und auf alle Aktieninvestitionen anwendbar, einschließlich nachhaltiger und Impact-Finanzierungen.
- Launch of comprehensive risk assessment tool covering 50,000+ public companies
- Mapping of 4 million+ corporate assets to 85 individual risk issues
- Potential for enhanced risk analysis and portfolio construction for investors
- Applicability to sustainable and impact finance
- API availability for easy integration
- None.
Insights
Verisk Maplecroft's launch of Asset Risk Exposure Analytics (AREA) marks a significant advancement in risk intelligence for investors. As a market research analyst, I see this as a game-changer in how we evaluate corporate risk exposure.
The key strengths of AREA lie in its comprehensive coverage and granularity:
- Over 50,000 publicly traded companies and 4 million+ corporate assets analyzed
- 85 individual risk issues mapped to subnational levels
- Diverse risk categories including political, human rights, climate and environmental factors
This level of detail allows for a more nuanced understanding of a company's risk profile, going beyond traditional headquarter-level assessments. For investors, this means better-informed decision-making and more effective risk management strategies.
The inclusion of sector-specific risk weightings for 50 out of 85 risk issues adds another layer of sophistication, recognizing that different industries face varying levels of exposure to specific risks.
However, it's worth noting that while AREA provides a wealth of data, the true value will lie in how investors interpret and act on this information. The sheer volume of data could be overwhelming without proper analysis tools and expertise.
Overall, AREA represents a significant step forward in risk intelligence, potentially reshaping how investors approach portfolio construction and stewardship in an increasingly complex global business environment.
From a financial perspective, Verisk Maplecroft's AREA solution presents a compelling value proposition for investors and could potentially impact Verisk's (Nasdaq: VRSK) financial performance positively.
Key financial implications include:
- Revenue Growth Potential: By addressing a critical need in the investment community, AREA could drive significant revenue growth for Verisk's Maplecroft division.
- Market Differentiation: The comprehensive nature of AREA (85 risk factors across 50,000+ companies) sets it apart from competitors, potentially commanding premium pricing.
- Scalability: With an API-based delivery model, AREA can be easily integrated into existing investment platforms, facilitating rapid adoption and scalability.
- Cross-selling Opportunities: AREA complements Verisk's existing offerings, potentially driving sales across its product portfolio.
However, investors should consider potential challenges:
- Development Costs: Creating and maintaining such a comprehensive database likely requires significant ongoing investment.
- Market Education: Adoption may require extensive market education, potentially leading to a longer sales cycle.
- Competitive Response: Success could prompt rapid competitive responses, potentially pressuring margins over time.
While specific financial projections aren't provided, AREA's launch could be a significant growth driver for Verisk, particularly in the expanding ESG and risk intelligence markets. Investors should monitor adoption rates and any impact on Verisk's financial results in coming quarters.
AREA represents a significant leap forward in ESG data integration and analysis. Its comprehensive approach addresses several key challenges in current ESG investing practices:
- Granularity: By mapping risks to specific assets, AREA provides unprecedented detail in ESG risk assessment, moving beyond broad company-level ratings.
- Objectivity: The use of geospatial data and location-specific risk assessments reduces reliance on self-reported company data, enhancing objectivity.
- Forward-looking Analysis: Inclusion of climate scenarios and different time horizons allows for more robust future risk assessment.
- Holistic View: The integration of 85 risk factors across multiple categories provides a more comprehensive view of sustainability risks.
AREA's potential impact on ESG investing practices is substantial:
- Enhanced Due Diligence: Investors can conduct more thorough ESG due diligence, identifying risks that may be overlooked in traditional analyses.
- Improved Engagement: Asset managers can use AREA data to drive more targeted and impactful corporate engagement strategies.
- Portfolio Construction: The granular data allows for more sophisticated ESG integration in portfolio construction and risk management.
However, the effectiveness of AREA will depend on how investors interpret and act on the data. There's a risk of information overload and investors will need to develop new analytical frameworks to fully leverage this wealth of information.
Overall, AREA has the potential to significantly advance the field of ESG investing, providing investors with tools to make more informed, sustainability-focused investment decisions.
LONDON, July 25, 2024 (GLOBE NEWSWIRE) -- Risk intelligence company Verisk Maplecroft (Nasdaq: VRSK) has today launched a new data solution assessing location-specific risks to the assets of over 50,000 publicly traded companies. It provides investors with one of the most comprehensive views available of corporate exposure to global climate, environmental, human rights and political risks.
Combining the locations of 4 million+ corporate assets with industry-leading geospatial risk data, Verisk Maplecroft’s Asset Risk Exposure Analytics (AREA) features 85 individual risk issues that are mapped down to subnational levels. The solution has been developed to help reveal hidden vulnerabilities and strengths in the global operations of publicly listed firms worldwide and provides investors with a new perspective on companies’ risk and sustainability profiles.
“AREA helps address investor blind spots by delivering a bird’s eye view of a company’s assets, mapping these to the systematic risks that shape both its financial performance and its effects on the world around it,” says Verisk Maplecroft’s Head of Markets, James Lockhart Smith. “Manufacturing hubs in areas of rising civil unrest, data centres exposed to intensifying climate hazards, mines located in human rights hotspots – the data provides a granular, real-world counterpoint to headquarter-level assessments of risk and sustainability.”
The launch of AREA builds on Verisk Maplecroft’s 20-year standing as a premium provider of geospatial country risk and sustainability data. It also marks its ambition to further enhance its risk solutions for the financial community following the release of its Sovereign ESG offering in 2022, which won recognition at the ESG Investing Awards in the same year.
What sets AREA apart is the breadth, depth, quality and transparency of the data, which features:
- 18 political risks, such as civil unrest, conflict intensity, corruption and democratic governance
- 30 human rights issues across all civil, political and labour rights and human security risks
- 18 climate hazards and issues, which encompass different time horizons and emissions pathways
- 19 environmental risks, including natural hazards, pollution, biodiversity and deforestation
One key advantage of Verisk Maplecroft’s approach is investors can assess companies of all sizes, industries, and geographies against a substantial range of risks in one place using a consistent scoring framework. The 85 risk issues have been selected as among the most critical to investors, but we anticipate adding more of Verisk Maplecroft’s portfolio of 190+ risk indices into the solution over time. To help provide an extra layer of granularity, 50 of the risk issues covered in AREA also draw on Verisk Maplecroft’s Industry Risk Dataset to provide a weighted, sector-by-sector view of risk. All the data in AREA will be available through an API.
The solution is applicable to all equity investing, including sustainable and impact finance. Using AREA, portfolio managers and analysts can assess systematic political risks more easily and rigorously across their portfolios, so they can better optimise investment decisions and strategies. Responsible investment practitioners, on the other hand, can use AREA to better understand company exposure to key issues, including climate, nature and human rights at the asset level, which are rarely captured in traditional company-level sustainability data. AREA can therefore facilitate better risk analysis and portfolio construction, as well as much more targeted and impactful stewardship and engagement.
“If there’s one thing climate change has taught investors about risk it’s that location counts,” adds Principal Markets Analyst, Franca Wolf, who led on the development of AREA for Verisk Maplecroft. “In a time of heightened global uncertainty, AREA’s ‘big picture’ risk intelligence offers investors enhanced visibility of the world’s most pressing current and future threats and how they may interconnect with their portfolios.”
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About Verisk Maplecroft
Verisk Maplecroft, a Verisk business (Nasdaq: VRSK), is a leading geospatial risk analytics company specialising in global sustainability and political risk intelligence for institutional investors and multinational corporations. The company combines the world’s most comprehensive portfolio of global risk data with expert analysis to deliver an integrated approach to risk, which enables clients to enhance the sustainability and resilience of their investments and operations. Among investment fund managers and asset owners, the company is a trusted, independent source of analytics and research for the incorporation of climate change, natural capital, human rights, political risk and other issues across multiple asset classes. For more information visit: www.maplecroft.com
About Verisk
Verisk (Nasdaq: VRSK) is a leading strategic data analytics and technology partner to the global insurance industry. It empowers clients to strengthen operating efficiency, improve underwriting and claims outcomes, combat fraud and make informed decisions about global risks, including climate change, extreme events, sustainability and political issues. Through advanced data analytics, software, scientific research and deep industry knowledge, Verisk helps build global resilience for individuals, communities and businesses. With teams across more than 20 countries, Verisk consistently earns certification by Great Place to Work and fosters an inclusive culture where all team members feel they belong. For more, visit Verisk.com and the Verisk Newsroom.
FAQ
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