Verisk Maplecroft has launched a new Commodity Risk Service to help responsible sourcing, procurement and CSR professionals cut beneath Tier 1 suppliers and gain a transparent view of global sourcing risks at the farm or mine level.
Risk analytics covering 50+ commodities across 20 environmental, social and governance (ESG) issues enable companies to generate instant and actionable risk profiles for suppliers of raw materials in the lower reaches of their supply chain. The analytics are complemented by concise analysis of the key issues impacting the production of each commodity across a range of producing countries to further help the benchmarking of risk.
By quantifying 20 commodity-specific risk issues, the service allows users to pinpoint the risk issues which are the most relevant to their supply chains, including corruption, land grabs, certified sustainable production, modern slavery, child labour or water stress.
The new service provides access to data sets and risk profiles for 56 individual commodities. Notably, each individual data point is supported by underlying qualitative analysis, allowing users to quickly understand the reason for each score. This helps support internal reporting requirements and supplier engagement strategies.
By blending company specific data with Maplecroft’s commodity scores, clients can segment suppliers by category, spend, and materiality, while custom-weighting the indices means users can focus in on specific issues that align with their code of conduct.
“We’ve seen leading companies take big steps to tackle risks in their supply chains while NGOs and regulators continue to pile on the pressure,” says Stefan Sabo-Walsh, Commodity Risk Product Manager at Verisk Maplecroft. “The up-to-date data and analysis included in our new Commodity Risk Service is already being used to strengthen existing responsible sourcing programmes and as a starting point for new corporate risk mitigation activities.”
A growing body of investors utilising ESG data to inform responsible investment decisions can also utilise Verisk Maplecroft’s data to assess the exposure of companies to a range of risks associated with the sourcing raw materials, including cocoa, palm oil and the 3TG conflict minerals.
More information on Verisk Maplecroft’s Commodity Risk Service