For both investors and companies, awareness of the risks which can arise out of environmental and social developments is an important prerequisite for the formulation and evaluation of their strategies and measures. oekom research’s risk handbooks help investors and managers to identify relevant risks. The handbooks document and evaluate the risks specific to each sector, broken down into six risk categories:
market price risks
oekom research gives the risk exposure of individual sectors based on a specific index for each sector comprising values on a scale from 1 (low risk exposure) to 5 (very high risk exposure). The two indices can also be used for evaluating the risk exposure of existing portfolios. The following handbooks have been published to date:
oekom biodiversity risks handbook
If the world’s 3,000 largest companies were charged for the damage they cause to the environment and to species, it would cost them more than 50 per cent of their profits or a good seven per cent of their turnover. The figures vividly illustrate why there is growing interest in this issue on the financial markets. Particularly in sectors whose business relies heavily on species diversity and available ecosystem services (e.g. clean water), such as the food, pharmaceutical and tourism sectors, such damage could give rise to risks to business success which then also affect investors and lenders. In its biodiversity risks handbook, oekom research documents the sector-specific risks facing the 15 most severely affected sectors and evaluates these on the basis of its oekom Industry Biodiversity Risk Index (IBRI©).
Rolf D. Häßler
Director, Head of Corporate Communications