Verisk Maplecroft launches investor solution mapping global risk exposure of public companies across 4M+ corporate assets

Rhea-AI Summary

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.

Positive

• 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

Negative

• None.

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

What is Verisk Maplecroft's new Asset Risk Exposure Analytics (AREA) solution?

AREA is a data solution launched by Verisk Maplecroft (VRSK) that assesses location-specific risks to assets of over 50,000 publicly traded companies, combining 4 million+ corporate asset locations with geospatial risk data across 85 individual risk issues.

How many risk categories does Verisk Maplecroft's AREA cover?

AREA covers 85 individual risk issues across four main categories: 18 political risks, 30 human rights issues, 18 climate hazards, and 19 environmental risks.

When did Verisk Maplecroft (VRSK) launch the AREA solution?

Verisk Maplecroft (VRSK) launched the Asset Risk Exposure Analytics (AREA) solution on July 25, 2024.

How can investors access Verisk Maplecroft's AREA data?

Investors can access Verisk Maplecroft's AREA data through an API (Application Programming Interface).