September 27, 2022, Zurich, Switzerland and New York, USA
RepRisk & K2 Integrity announce partnership to help investment managers combat greenwashing
# Under the new partnership, RepRisk will provide K2 Integrity with access to its independent ESG risk data to leverage in its new ESG Certification solution
RepRisk, a leading ESG data science firm combining machine learning and human intelligence to identify ESG risks, and K2 Integrity, a leading compliance and risk advisory firm, today announced they have entered into a new partnership to bolster K2 Integrity’s ESG advisory offering. Through the new partnership, RepRisk will provide K2 Integrity with access to its independent ESG risk data to incorporate into the process and analysis used in K2 Integrity’s new, first-of-its-kind ESG fund Certification solution, which analyzes whether managers and funds are compliant with ESG regulations.
“When we look at our data, one of every five climate-related ESG incidents over the past two years was also linked to misleading communication (greenwashing). This presents a challenge for investors when it comes to separating empty promises from meaningful action, and a challenge for funds in proving their credentials,” said Alexandra Mihailescu Cichon, Executive Vice President at RepRisk. “We are excited to partner with K2 Integrity to help tackle this challenge by making our unique ESG risk data part of their certification process. Together, we can help bring greater transparency and accountability to the market – while also supporting investment firms in their efforts towards more sustainable investment.”
K2 Integrity’s new solution aims to support investment firms and their managers as they encounter increasing ESG regulations, including those from the Securities and Exchange Commission in the U.S. and the recent Sustainable Finance Disclosure Regulation (SFDR) in Europe. The solution provides managers with independent, rigorous analyses of their products to certify they are compliant with local ESG regulations and deliver on their ESG targets as advertised, to help address the industry-wide issue of greenwashing. RepRisk’s leading ESG risk data will help to further strengthen the analysis process of K2 Integrity’s new offering.
Andrew Rabinowitz, Co-CEO of K2 Integrity added: “About a year ago, I came to K2 Integrity to build an ESG business and partnered with some fantastic people and firms internally and externally, including, but not limited to, Neelam Sharma, Marcel Herbst, and of course, RepRisk. We believe that there is increased demand for transparency from stakeholders, regulators and the investment community to address important issues such as diversity, equity and inclusion, sustainability, and strong governance, and combat accusations of greenwashing. Our partnership with RepRisk will enable us to leverage both of our strengths to provide managers with an unrivalled solution to verify to the marketplace, limited partners and regulators that they do what they say they are doing.”
RepRisk takes an outside-in approach to ESG by looking at a broad range of public, media, and reputable stakeholder sources in order to identify ESG risks. It intentionally excludes company self-disclosures to provide clear, transparent, and impartial insights on a company’s ESG risks and business conduct across its operations. AI and machine learning empower the speed and size of RepRisk’s dataset, while human intelligence adds depth and relevance.
Founded in 1998 and headquartered in Switzerland, RepRisk is a pioneer in ESG data science that leverages the combination of AI and machine learning with human intelligence to systematically analyze public information and identify material ESG risks. RepRisk’s flagship product, the RepRisk ESG Risk Platform, is the world’s largest and most comprehensive due diligence database on ESG and business conduct risks, with expertise in 23 languages and coverage of 210,000+ public and private companies and 55,000+ infrastructure projects. For more than a decade, the world’s leading financial institutions and corporations have trusted RepRisk for due diligence and risk management across their operations, business relationships, and investments. Find out more on reprisk.com.
About K2 Integrity
K2 Integrity is the leading risk and financial crimes advisory firm helping clients understand and manage their risk so they can lead with confidence. With some of the most knowledgeable practitioners in the industry, K2 brings together deep subject matter expertise with proprietary technology and digital offerings to help clients creatively solve today’s issues while also planning for the future. With offices in New York, Washington, D.C., London, and Abu Dhabi, and more than 400 employees globally, K2 has deep knowledge and experience working in every region and numerous jurisdictions around the world. To learn more about how K2 Integrity is revolutionizing the management of risk, visit www.k2integrity.com, or follow us on Twitter or LinkedIn.