Agro-commodities firms, especially those working in emerging economies, face a broad range of risks ranging from labour and human rights issues, to operational challenges from political risks, weak infrastructure capacity, climate change, water stress and natural hazards.
In response, Maplecroft has developed a range of multi-award-winning products and services that are used by companies in the agro-commodities sector, whether they are farming crops directly, sourcing products like palm-oil, cocoa and rubber in their supply-chains, or working in export finance. These include: country risk reports and briefings, commodity–specific reports, supply chain integrity briefings, reports on key emerging producers, custom indices and commodity scoring, strategic resourcing and ethical supply chain tools and risk calculators.
Maplecroft’s full-spectrum risk assessment service helps these companies identify, monitor and manage risk throughout their operations, supply chains and distribution networks.
With over 160+ risk indices and interactive maps, Maplecroft analyses the most pressing issues impacting the agro-commodities sector down to site specific levels. Indices and maps include: climate change vulnerability; natural hazards; water stress; food security; corruption; legal and regulatory risks; political risks; poverty and development; and reputational threats arising from complicity with labour rights and human rights violations in the supply chain.
Maplecroft’s indices and interactive maps are available individually or can be accessed through seven thematic risk atlases, which aggregate key issues.
Maplecroft’s Atlases are updated annually and provide maps, indices and scorecards for up to 197 countries, as well as analysis of the key issues, methodologies and data sources.
Global Risks Atlas
Assesses the strategic risks that impact the global value chains of business, as well as the ability of national institutions to mitigate them. Includes 36 risk indices and interactive maps assessing macroeconomics; security; resource security; climate change; and pandemics; governance risks and societal resilience.
Political Risk Atlas
Appraisal of traditional political risks including: conflict, terrorism, rule of law and the regulatory and business environment; as well as structural challenges affecting political stability such as resource security, climate change and human rights. Includes 50 political risk indices, maps and scorecards for 197 countries.
Legal and Regulatory Environment Risk Atlas
An ideal tool to help organisations identify and monitor legal and regulatory risks, such as corruption, corporate governance, regulatory framework, respect for property rights. Includes 21 indices and maps, scorecards for 173 countries, in addition to an assessment of the implementation of ten key legal instruments.
Human Rights Risk Atlas
Analyses 31 different human rights violation categories – including seven composite indices covering human security, labour rights and protection, civil and political rights, access to remedy, complicity and lack of rule of law, reporting environment, and overall human rights protection – across 197 countries.
Climate Change and Environmental Risk Atlas
Provides comprehensive analysis of the key risks to business in the areas of climate change vulnerability and adaption; emissions and energy use; environmental regulation; and ecosystem services. It includes 23 interactive maps and indices, which have been developed to identify, evaluate and compare climate change and environmental risks down to 25km2 worldwide and provide insight into current and emerging trends.
Natural Hazards Risk Atlas
Evaluates the risks and resilience to the occurrence of natural hazard events in 197 countries. Includes indices and interactive subnational maps of 12 natural hazard risks, as well as scorecards for all countries. The Atlas also measures overall economic exposure and socio-economic resilience to natural hazards.
Growth Markets Atlas
Provides an evaluation of economic performance, investment conduciveness, recent structural reforms and projected future demographic trends, including growth of middle class consumers. Maplecroft divides its scoring across the three indices evaluating Growth Performance, Growth Environment and Growth Potential. The Atlas includes 17 indices and scorecards for 173 countries.
Maplecroft’s briefings and in-depth reports help organisations in the agro-commodities sector to monitor and manage a wide variety
of operational and reputational risks. These empower firms to understand the full spectrum of extra-financial risks associated with
investing in, or sourcing from, a country or sub-national region.
Maplecroft monitoring and reporting system
- Baseline in-depth reports (25+ pages): Produced at the outset of the year or at an agreed alternate annual date to provide substantive background analysis and due diligence review of key issues and risks (the governance framework; political risk and violence; the economy; the regulatory and business environment; human rights and society; and natural hazards, environment and climate change). In addition the reports integrate GIS derived, sub-national maps and provide stakeholder viewpoints on risk and key recent events.
- Weekly, Monthly, Quarterly Monitors (1 page scorecards for key watch countries): Offering quantitative country risk scores and trends of increasing, unchanged or decreasing risk across key risk areas and qualitative analysis of significant recent events and outlooks across the core risk areas. Developed to focus on issues driving changes to risk scores and our forecast for the next quarter including implications for sectors.
- Trigger briefings (2-4 pages): Concise analysis and forecasts that are activated when the risk within a country changes significantly, as shown in the monitor. These focus on the issues driving changes to risk scores and the implications for business.
- In-depth update reports or tailored specific reports (25+ pages): Produced when more in-depth analysis is required on the back of the trigger briefing and pertaining to sectors or business specific
Issue specific reports
- Commodity–specific reports: These assess the key risks associated with producing or purchasing specific agro-commodities or products from a country or a range of countries, including appropriate analysis of key suppliers and producers. For example, such reports have covered palm-oil in key West African producers.
- Supply chain integrity briefings: These analyse operational and reputational risks to companies sourcing from or outsourcing to key countries. Topics covered include: labour rights and protection, environmental protections and anti-corruption compliance.
- Reports on key emerging producers (countries and companies): These analyse a range of risks facing comapnies (traders, intermediaries and providers) working in a variety of agricultural sub-sectors in emerging and potentially high-risk countries. This includes mapping and analysis of key-landowners and stakeholders and analysis of company performance.
- Company reports: Maplecroft’s in-depth bespoke company reports provide vital insights into a company’s environmental, social, governance (ESG) risk exposures and management proficiency. These empower clients to conduct remote due diligence of existing and potential entities in their supply chain, joint venture partners or possible acquisition targets.
Other issue specific products include: labour standards reports, corruption risk briefings, election monitors and quarterly monitors for political risk and human rights.
Custom country / sovereign risk calculators enable agro-commodities companies to select and compare risk indices to create scorecards that quantify risk for all countries. The Interactive dashboard also allows them to combine their own compliance and country risk data with Maplecroft’s indices in a central repository where they can create bespoke indices, maps and risk scorecards using a proprietary online interface.
Maplecroft’s products are available for all countries and issues and can be tailored to client specifications. For more details visit Maplecroft’s Global Risks Portfolio.
Custom indices and commodity scoring
Maplecroft’s commodity adjusted indices assess key environmental and social risks associated with a specific agro-commodity or produce up to point of purchase. Indices have also been developed to align with IFC Performance Standards, for instance on environmental protection, child labour, and biodiversity.
Maplecroft’s supply chain management tools and services allow companies to comprehensively assess their supply chain risk across all countries and industries, from a national and subnational level down to individual suppliers.
Key tools and services include:
- Ability to weight different indices according to client’s priorities (e.g. human rights, child labour, and corruption) and produce custom risk assessments that reflects corporate codes of conduct, etc.
- Pre-screening or risk assessment that leverages Maplecroft issue, country, sector, product and commodity risk data along with a client’s own knowledge of strategic significance and spend etc. for each supplier
- A self-assessment questionnaire completed by suppliers / producers that helps firms to gain a company-level risk assessment
- An in-depth and targeted audit of suppliers flagged as high risk during the previous two stages. Maplecroft can design audit protocols or assist / support your own employees as they evaluate suppliers
- Training resources (slides, maps, brochures) as well as in-company workshops with your buying and responsible sourcing teams
Mapping platforms for strategic sourcing
These online tools enable users to upload and visualise company and supplier locations within our existing interactive maps. Detailed information can be aligned with the coordinates, e.g. name, crop, attribute e.g. Fairtrade, UTZ, F2F indicators, etc. Our maps and customised risk scorecards for supplier are used to inform and evaluate strategic sourcing decisions.
To assist agro-commodities firms, risk assessments and indices have been aligned with IFC Performance Standards and can incorporate other international standards and guidelines.
01Commodity-specific reports for a global development bank
Maplecroft has produced a series of country risk reports on key international sugar producers for a well-known global development bank. Each report focused on one country and provided:
- Analysis of the status of the sugar sector, including area cultivated, key producers/processors, etc.
- Assessments of key E&S issues associated with the sector, including sub-national variations.
- In-depth reviews of identified producers/suppliers.
For some countries of additional interest, these reports were then expanded to cover additional agro-commodities requested by the client (coffee, cocoa, palm oil, copra, livestock, fisheries and forestry) and then to cover selected non-agricultural sectors (mining, O&G, ICT, transport, tourism and power). The final phase of the project provided the client with in-depth analysis of associated State Owned Enterprises and key landowner groups. These reports minimised the bank’s risk exposure by identifying the markets and suppliers with the least risk exposure.
02Supplier benchmarking for a food manufacturer
Maplecroft has undertaken a benchmarking exercise for a well-known food manufacturer that sources agro-commodities, such as cocoa, coffee, palm oil, and sugar.
The benchmarking exercise included:
- Rating of 26 companies in the food and beverage sector for the company’s responsible sourcing programme, using Maplecroft’s bespoke company assessment tool.
- Production of scorecards with company performance and ranking for each company.
- In-depth analysis, including identification of best practice within the sector and gaps within the company’s current programme.
Through this peer comparison, it was possible to highlight the areas that require further improvements for the company to retain its position as sector best.
03Development of a strategic-sourcing tool for a leading supermarket
Maplecroft has developed an online tool allowing a global supermarket chain to evaluate multiple risks across supplier sites worldwide.
Using supplier coordinates provided by the supermarket, Maplecroft’s tool maps thousands of supplier sites, allowing them to refine results by country, supplier relationships and supplier roles.
- The tool was customised for the supermarket to enable them to select key themes of concern, from Maplecroft’s unique bank of over 160 risk indices, to focus on issues including: labour rights, political violence and conflict and natural hazards risks.
- Selected sites are compared against key themes of interest, with the tool providing analytics both at country and site-specific levels.