Construction and Engineering
With many Western markets stagnant, the huge opportunity for construction and engineering
firms often lies in emerging markets where rising incomes, rapid urbanisation and ambitious infrastructure
projects promise impressive returns. However, working in such jurisdictions can also leave companies exposed
to a wide array of risks. These can include those
stemming from changing legal and regulatory
environments, workforce labour rights, health
and safety issues, poor service provision and
natural hazards, and problems relating to
corruption and non-payment on the part of
public and private sector counter-parties.
In this context, Maplecroft has developed a range of products and services to enable construction and engineering firms to identify, monitor and manage such risks throughout their projects’ RIBA work stages, from initial appraisal and bidding, through execution to completion and handover. These include 200 risk indices and interactive maps covering issues, such as corruption, security, regime stability, water stress, labour rights and natural hazards; in-depth reports and analysis covering country risks, company risk, labour rights, commodities and corruption; due diligence services; ethical supply chain management and customised risk calculators.
01Analysing and mapping social risks for a multinational engineering company
Maplecroft currently provides a range of services to a well-known global engineering firm, which is currently developing market-leading risk management and sustainability policies.
- Producing bespoke sector-relevant country risk reports and key region briefings. E.g. customised social risks and labour standards reports for new operating markets, particularly for the Persian Gulf and post-Arab Spring North African states, where local labour practices pose substantial reputational challenges.
- Conducting specially formulated pre-bid social risk assessments for all proposed EPCM projects in countries where the firm does not yet have a substantial footprint.
- Developing GIS-derived maps to help the firm understand a wide range of project-level issues, such as local land use, energy, labour, economic activity and infrastructure provision.
- Helping the firm develop a global human rights and sustainability policy framework, including stakeholder engagement and gap analysis, production of self-assessment questionnaires, development of auditing toolkits and in-house training programmes.
- Production of the company’s award-winning integrated annual report and guidance to help it meet the entry criteria for the FTSE4Good Index.
02Pinpointing natural hazards risk exposures for a global construction firm
A multinational construction company, looking to invest in countries that are highly vulnerable to the impacts of natural hazards, contracted Maplecroft to produce an in-depth report to pinpoint risk exposures to potential investments.
- Maplecroft’s environmental analysts undertook extensive research to provide in-depth analysis of risks to the company’s potential investments stemming from tropical cyclones, flooding, drought and earthquakes.
- The report utilises quantitative data from Maplecroft’s Natural Hazards Risk Atlas to provide scorecards of individual natural hazard risks at subnational levels, throughout a range of countries, to enable the comparison of risk between potential investments.
- The locations of potential investments, as well as country infrastructure, were overlaid on Maplecroft’s subnational maps of tropical cyclones, flooding, drought and earthquakes to enable further, highly visual comparisons, which were used to communicate the levels of risk to different internal audiences.
- Subnational mapping and country level data from Maplecroft’s Climate Change Vulnerability Index used to forecast potential risk exposures to investments over the next 30 years.
The report’s findings helped the company identify locations with varying vulnerability to natural hazards and were used to inform its investment decisions.
03Assessing operational risks in frontier markets across Sub-Saharan Africa
Maplecroft produces a suite of reports for a leading engineering firm working on large infrastructure projects across high risk environments in Sub-Saharan Africa
- Producing in-depth country reports analysing key security risks, logistics issues, resource availability and existing infrastructure, Maplecroft’s work enables the company to assess the viability of projects and the safety to employees and assets.
- Comprehensive assessments of the human rights situation are included to help the firm identify potential reputational risks stemming from complicity with security forces used in the protection of operations and assets.
- The reports incorporate Maplecroft’s sub-national mapping of terrorism, conflict and political violence, human security and human rights to enable the company to pinpoint hotspots of risk.
- The reports are supplemented by in-field assessments from Maplecroft’s highly experienced advisory services team to provide expert risk assessments at site-level.