RepRisk’s core research process focuses on 28 specific “Issues” tied to ESG themes and is incident focus rather than company specific. By screening news from 80,000 public sources & stakeholders in 16 languages, RepRisk is able to identify incidents as they occur and tie them back to any company that may be involved.
I thought it would be interesting to take a look at the Russell 3000 and identify the 10 companies with the most incidents so far this year.
The query below allows a user to start with a Mutual Fund or ETF ticker and view any issues associated with the companies in that fund.
SELECT scov.proper_name, ri.*, rim.repr_issue_category FROM sdfdemo.sym_v1.sym_ticker_region AS tr JOIN sdfdemo.sym_v1.sym_coverage AS cov ON cov.fsym_id = tr.fsym_id JOIN sdfdemo.own_v5.own_ent_fund_identifiers AS f_i ON f_i.fund_identifier = cov.fsym_security_id JOIN sdfdemo.own_v5.own_fund_detail AS f_d ON f_i.factset_fund_id = f_d.factset_fund_id JOIN ( SELECT factset_fund_id, MAX(report_date) AS max_date FROM sdfdemo.own_v5.own_fund_detail GROUP BY factset_fund_id) AS df ON df.max_date = f_d.report_date AND f_d.factset_fund_id = df.factset_fund_id JOIN sdfdemo.sym_v1.sym_coverage AS scov ON f_d.fsym_id = scov.fsym_id JOIN repr_v1.repr_factset_id_map AS id ON f_d.fsym_id = id.factset_id AND report_date >= id_start_date AND report_date < ISNULL(id_end_date,GETDATE()) JOIN repr_v1.repr_issues AS ri ON id.provider_id = ri.repr_company_id JOIN repr_v1.repr_issues_map AS rim ON ri.repr_issue = rim.repr_issue WHERE tr.ticker_region = 'VTI-US' AND repr_timeslot_date > '1-1-2018'
I took the results and did some quick visualizations in Tableau. Amazon takes the notorious “top spot” with the most number of violations at 166, followed closely by Apple, Walmart, and Facebook.
From an incident standpoint, Violation of National Legislation was the most commonly occurring issue type by a substantial margin, while somewhat surprisingly Environment specific issues were the least common occurring category, with Chevron and Exxon Mobil responsible for the vast majority of the roughly 100 environmental incidents in 2018.
In addition to the Issues data, RepRisk includes Topic Tags that can be used to filter companies based on business-line involvement. Finally, they also provide the Current RRI, Peak RRI, and RRI Trend scores which are calculated based off the reach, severity, and novelty of each incident related to a company. These are incredibly useful tools to judge a company’s overall Reputational Risk from ESG related incidents.