Our solutions allow financial professionals to assess the financial and reputational risks resulting from clients or investments linked to breaches of international standards, such as severe environmental degradation or the violation of human rights and labor standards.

Examples:

• Environmental risk procedures for several business lines within commercial and investment banks (for example, corporate lending, export finance, trade finance, private banking, M&A, and underwriting). Depending on the client segment, the procedures cover financial risk (e.g. related to site contamination, asbestos, natural hazards) and reputational risk (e.g. related to controversial clients).
• Review of environmental risk procedures in Europe, the United States and Asia-Pacific (focus on reputational risks in investment banking, corporate lending and private banking).
• Design and development of RepRisk®, a web-based tool to assess risks related to controversial companies and projects. As of September 2010, RepRisk® covered more than 15,400 companies and 3,200 projects. RepRisk® is used in commercial banking, investment banking and asset management, among others by Credit Suisse, Commerzbank, Deutsche Bank, Goldman Sachs, J.P.Morgan, UBS, and UniCredit Group. In 2010 RepRisk reached a size and financial stability that allowed for a stand-alone business; ECOFACT remains a distribution partner. For more information, please visit www.reprisk.com.
• ESAT, an environmental and social assessment tool, for IFC, the private-sector arm of the World Bank Group. ESAT is designed for SME financing in emerging markets.
• Environmental risk management tool for IIC, the private-sector arm of the Inter-American Development Bank. The tool is used by IIC's clients in Latin America and the Caribbean.
• Screening tool for SIFEM, the Swiss Investment Fund for Emerging Markets. The tool is used by SIFEM when screening private equity investments in emerging markets.

2. Policies and guidelines

We support our clients in drafting documents that provide financial professionals with clear guidance for day-to-day business decisions.

Examples

• Sector-specific policies, guidelines and screening tools for international commercial and investment banks. Sectors recently covered include biofuels, defense, forestry, gambling, metals and mining, nuclear power, oil and gas.
• Environmental and social risk framework covering all financial and reputational risk categories.
• Reputational risk management framework to address Basel II requirements. We also conducted a survey on best practices in reputational risk governance for a leading European bank.
• Support for leading international banks in revising their group sustainability policies.

3. Training and capacity-building

We provide business, risk management and risk control functions with the expertise they need.

Examples:

• Training for bankers to support them in implementing new procedures. Attendees included client advisors, risk officers, M&A specialists, recovery managers, trade and export finance specialists.
• Modular training kit on sustainable finance, including training modules and case studies for IFC, the private-sector arm of the World Bank Group. The material can be used to organize workshops that last from half a day up to 5 full days.
• Several case studies for commercial banks and investment banks.
• Workshops on sustainable finance for financial sector specialists from the private sector, from multilateral development banks, and from governmental authorities.