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Value chain / supply chain risk

Increasingly stringent international laws, such as the Dodd-Frank Act, now put the onus on global businesses to be transparent about what risks are associated with creating a product, and how those risks are being managed.

UNGC Self-Assessment & Learning Tool
Quickly and anonymously check company supply chain sustainability strategy against suggested global guidance – identifies strengths and areas for improvement
Verisk Maplecroft Self-Assessment Tool
Helps companies evaluate: the type of content to include in a supplier self-assessment tool for responsible sourcing; how your business might score when answering similar questions sent by a customer

Responsible sourcing

Verisk Maplecroft works with some of the world’s leading organisations to structure and inform their approaches to responsible sourcing. We advise on all stages of the process, from pre-screening and conducting risk based due-diligence on new suppliers, understanding the risks and opportunities associated with doing business in different locations, and mitigating, managing and monitoring risks across the supply chain.

Read more about Verisk Maplecroft’s Responsible Sourcing management services and tools:

  • Risk indices
  • Supplier mapping and Strategic Sourcing Tool
  • Risk calculators
  • Screening/pre-screening self-assessment tool
  • Audit service for high risk suppliers

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Partnering with Sedex to create ethical supply chain management tools

Sedex is a not for profit membership organisation for businesses committed to the continuous improvement of ethical and responsible supply chain practices. Verisk Maplecroft worked with Sedex to develop its Supplier Assessment Questionnaire (SAQ) and risk assessment tools. Both are benchmarked against best practice standards including SA 8000©, ISO 14001, OHSAS 18001, as well as the Ethical Trading Initiative and other standards relevant to the retail, food and garment sectors. The risk assessment tool leverages a limited selection of Verisk Maplecroft country risk indices – with further in-depth information and root cause analysis available via our products and services.

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Strategic sourcing

The location of a company’s suppliers has the potential to pose a major risk to business continuity. For example, suppliers of a specific raw material might be clustered in a region affected by water stress, susceptible to natural hazards or severely impacted by an outbreak of political instability – creating the risk of future disruptions. A more strategic approach to sourcing requires companies and investors to understand and compare the full range of potential issues impacting suppliers by location.

Commodity insight

The complex risks associated with the extraction/production of a commodity, right the way back to its source, are now a key source of concern for companies. This is partly due to new legislation in this area – such as the US Dodd-Frank Act, consumer scandals around the contamination of food value-chains, and stakeholder campaigns focusing on issues, such as the human rights, labour standards and environmental impacts of a range of commodities.

The lengthy nature of some supply chains – as well as the consolidation of commodities – means risks can be hidden from view and transparent reporting can be challenging. Verisk Maplecroft helps organisations understand and quantify these risks through rigorous qualitative and quantitative analysis of the key issues affecting commodities production, including:

  • Commodity indices, produced for all commodities, including agro-commodities and raw materials. Drawing on Verisk Maplecroft’s products and services, these rate producing countries on relevant inherent risks (aggregated or focused on risks of concern)
  • Commodity reports, analysing the risks that impact the production of a specific commodity in one or more geographies, or across a selection of producers and value-chain participants

Armed with this detailed insight into the true conditions of production, companies can have more focused conversations with brokers and other partners across their supply chain and give them assurance that they are doing everything they can to address any relevant risks. Our tools in this area are endorsed and used by Sedex.

Business continuity/political risk

Terrorism, conflict, regime change, or natural hazards have the potential to swiftly and severely disrupt business operations. Verisk Maplecroft helps companies evaluate and manage these risks through in-depth reports and briefings, human rights and political monitoring services, and same-day analysis.

Company/supplier rating

Over the past five years we have developed a highly refined methodology to rate and weight a company’s sustainability performance, covering a full range of issues, including human rights, labour standards, climate change and environmental challenges, as well as corruption and related governance risks.

Our rating tools evaluate how well a company is performing in managing and mitigating risks, as well as adapting and improving its working practices. Companies are scored using the information they disclose, documented actions they have taken, and third-party analysis.

Rating takes place using well-established and transparent methodologies, utilising tools such as electronic surveys and scorecards. The tools and methodologies can be licensed and incorporated within a company’s own products to benchmark existing funds or to develop tradable indices.

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