Open:FactSet Forum

Uncovering the Rippling Effect of Sanctions

Combing FactSet’s Global Sanctions and Supply Chain Relationships DataFeeds let’s you perform the proper due diligence to not only identify entities directly involved with sanctions but also pinpoint other companies within their supply chain, such as customers, that will be affected. Let’s examine the recent sanctions placed on Huawei, which effectively banned US companies from selling to Huawei, to do just that.

FactSet’s Global Sanctions feed provides access to over 75 global sanctions lists, including the dates the individual or entity first appeared and last appeared on the list. Supply Chain Relationships allows for analysis of 13 key relationship types (e.g. customer, supplier, manufacturing partner, distribution partner) between companies through time.

By leveraging Sanctions, we are able to uncover all entities under Huawei’s ultimate parent: Huawei Investment & Holding Co. Ltd. From there, we can perform a lookup of those entities to understand which were directly listed on the US sanctions list:
image

SQL Query

SELECT se1.entity_proper_name,
sl.factset_entity_id,
se2.entity_proper_name AS ‘ultimate_parent_name’,
es.factset_ult_parent_entity_id,
lm.list_desc AS ‘sanctions_list’,
sl.inception_date,
sl.termination_date
FROM sanc_v1.sanc_ent_structure AS es
JOIN sanc_v1.sanc_lists AS sl
ON sl.factset_entity_id = es.factset_entity_id
JOIN sym_V1.sym_entity AS se1
ON se1.factset_entity_id = sl.factset_entity_id
JOIN sym_V1.sym_entity AS se2
ON se2.factset_entity_id = es.factset_ult_parent_entity_id
JOIN ref_V2.list_map AS lm
ON sl.list_id = lm.list_id
WHERE factset_ult_parent_entity_id = ‘0BLWSQ-E’;

With our list of sanctioned entities identified, we can now query the Supply Chain Relationships feed to bring back customers of those entities. Supply chain not only provides those relationships, and the dates in which they were active, it also includes a revenue percentage when disclosed. In our results below, the revenue_pct represents percent of revenue the customer receives from Huawei. We can see four entities that have disclosed that over 10% of their revenue comes from their customer-to-supplier relationship with Huawei.

image

SQL Query

SELECT se1.entity_proper_name AS ‘supplier_name’,
sc.supplier_factset_entity_id,
se2.entity_proper_name AS ‘customer_name’,
sc.customer_factset_entity_id,
sc.revenue_pct,
sc.start_date,
sc.end_date
FROM ent_v1.ent_entity_structure AS es
JOIN ent_V1.ent_scr_supply_chain AS sc
ON sc.customer_factset_entity_id = es.factset_entity_id
JOIN sym_V1.sym_entity AS se1
ON se1.factset_entity_id = sc.supplier_factset_entity_id
JOIN sym_V1.sym_entity AS se2
ON se2.factset_entity_id = sc.customer_factset_entity_id
WHERE factset_ultimate_parent_entity_id = ‘0BLWSQ-E’
AND end_date IS NULL
AND se1.iso_country = ‘US’
ORDER BY revenue_pct DESC;

4 Likes

Hi Christian, can you also share stats on how many public companies sit in the Global Sanctions datafeed and how many private companies in the Global Sanctions list have been named in a relationship within our Supply-Chain data. Thanks.

2 Likes

Hi Manoj,

Great question, there are roughly 50 public entities in the Global Sanctions DataFeed. In terms of private companies that are sanctioned and have been named in a relationship within Supply-Chain data, I was able to run some stats and found the following:

image

The relationship count indicates the number of unique relationships that those entities are involved in. The relationship could be any of those 13 relationship types contained within the feed. The Data Dictionary found on the Open:FactSet Marketplace card for Supply Chain does a great job providing details on each.