@Risk

Human rights and labor standards risks for companies and investors are increasing on a global scale, according to a new study from the risk analysis and mapping company Maplecroft.

The fifth annual Human Rights Risk Atlas (HRRA) found that nearly half (48 percent) of the 197 countries studied now pose ‘extreme’ or ‘high’ risks of corporate complicity in rights violations. All told, citizens in 95 countries are now exposed to human rights violations by states –that’s a 6 percent increase in countries posing ‘extreme’ or ‘high’ risks to business and investors since 2010.

What’s the reason behind the increase in human rights and labor standards risk? Maplecroft cites three main factors:

• the violent crackdown on protesters by security forces during the Arab Spring uprisings,
• an emerging set of resource scarcity challenges for business, linked to large scale ‘land grabs’ in developing countries by foreign investors, aimed at increasing food, water and energy security at home, and
• the global economic recession continued to challenge the rights of workers and has resulted in a trend for the trafficking of migrant workers for forced labor in countries such as Malaysia, Russia, South Africa and UAE.

Here is Maplecroft’s ranking of the ten countries where there’s the most extreme risk for human rights violations: (more…)

Water is one of our most important natural resources, and it is quickly becoming a significant business growth and development risk. Climate change, population growth and increasing living standards are the culprits, each contributing to rising pressure on already scarce water resources.

Investors are beginning to take note, as it becomes more and more clear that sustainable water management is needed to mitigate business risks and help ensure access to sufficient quality and quantity of water supplies.

A new report by WWF and German development bank DEG contains some sobering news. According to DEG and WWF, 191 out of 319 companies studied as part of the report showed high potential business risks related to freshwater. These risks break down into three broad, inter-related categories: (more…)

Companies throughout the world are becoming increasingly concerned about the quality and quantity of the water resources that support their business processes. So, it’s no surprise that we are starting to hear more and more about ways that organizations are working to mitigate water risks in their supply chains.

Just last week, San Francisco-based Climate Earth launched what it calls “the first cradle-to-gate solution for managing direct and indirect water usage.” According to the company, this environmental business intelligence system provides: (more…)

Changing weather patterns are becoming increasingly relevant to corporate risk assessments, and yet a newly released study found that the current availability of, and access to, climate change information remains insufficient, both in format and quality.

The report, sponsored by the German Federal Ministry of Education and Research, presents the results of an international survey undertaken by the Climate Change Working Group (CCWG) of the United Nations Environment Programme Finance Initiative (UNEP FI) and the Sustainable Business Institute (SBI), Germany. All told, 60 institutions –from both developed and developing countries across six continents –were polled.

The survey focused on financial service providers because these institutions have expressed a need for more and better climate change information so that they can enhance risk management within their industry. In addition, financial service providers also play a key role in accelerating the implementation of adaptation measures by the private sector more broadly.

Only one-third of those polled felt “sufficiently informed” about climate change, and more than 80 percent said what they need most is interpretation of the quality of climate predictions.

According to SBI, the gaps in the availability of information that were identified in the survey can be closed by: (more…)

Even though the federal government has failed to pass meaningful climate change and energy legislation, “greening the supply chain” remains a priority for many companies. Businesses are turning to their supply chains to eliminate waste, reduce their environmental impact and diminish risks associated with climate change and resource depletion.

Now, more than ever before, a wide range of stakeholders, including commercial customers, consumers, investors, analysts and others, is demanding transparent information about the lifecycle of products and services.

To help you get your arms around these environmental concerns, Ernst & Young LLP has identified five specific climate change and sustainability risks to supply chain operations. This list includes: (more…)