Above the surface, ESG seems like a lot of red tape that can be avoided by publishing a buzzword-filled report at the end of the year; however, below the surface, ESG has a greater impact. Failure to comply with ESG directives can lead to investment risk, supply, chain risk, reputation risk, and more. Recomentor helps mitigate risk by having all the relevant ESG data you need in one place and mapping your activities to unknown risks while also helping you spot new opportunities.
In this blog, we’ll explore how Recomentor uses Risk and Opportunity Indicators to guide your ESG strategy and identify levels of impact.
What is it?
These indicators identify mentions of pre-set risks and opportunities in Recomentor within your ESG report. It also gauges how significant those mentions are. Recomentor scans your ESG report for specific keywords and contexts that describe potential challenges (risks) or positive developments (opportunities) in its database. It then evaluates how prominently these topics are discussed (low, medium, high strength), giving you a clear snapshot of where your organization faces the biggest challenges or has the greatest potential for ESG gains.
Benchmark
- Number of Risks (integer)
- Number of Opportunities (integer)
- Aggregated Risk Indicator (real number)
- Aggregated Opportunity Indicator (real number)
Why does the Risk and Opportunity Indicator matter?
- Spotlights report issues: Quickly highlights the most pressing ESG risks you need to address.
- Gives you new insights: Shows whether you’re adequately exploring potential benefits or new projects that align with sustainability.
- Measures competition: Helps compare how your risk profile stacks up against industry peers or best performers.
- Shapes your strategy: Guides strategic decision-making on where to focus resources for both risk mitigation and opportunity leverage.
Four Guiding Questions
- Companies & Sustainability Departments: “What ESG risks are most urgent for our business, and are we capitalizing on clear opportunities?”
- ESG Consulting Firms: “Which client risks need immediate attention, and where can they gain competitive advantage through ESG?”
- Financial Institutions: “How do the risks and opportunities of a potential investment align with our broader ESG portfolio strategy?”
- Investor Relations Departments: “Are we clearly communicating our risk management and growth opportunities to investors?”
By using this indicator, you can protect yourself from unknown risks and stay secure. Do you have a need for this in your company? Check out our platform page to learn more and book a demo call.