what marks us out
risk assessmentsoekom commodities esg screening (OCES)
Raw materials are a fundamental component of important value chains within our economy. Investors also use commodities as an important asset. Companies and investors concerned about sustainability face the challenge of avoiding risks to their reputation which they might incur by procuring raw materials from dubious sources or with a poor sustainability record: the extraction of raw materials is frequently associated with large-scale interventions in the environment and often with infringements of fundamental labour rights. Phrases like “blood diamonds” and “resource curse” exemplify and graphically describe the enormous problems which are associated with the extraction of raw materials.
oekom’s Commodities ESG Screening (OCES) provides a well-founded basis for assessing and selecting raw materials in a way that takes social and environmental aspects into account. The OCES screening process firstly evaluates the companies which mine or produce the raw materials concerned and secondly analyses the social and environmental situation in the principal countries of origin of the raw material concerned. This analysis examines in detail the distinctive national aspects of production of the raw materials concerned. The corporate and country analysis is complemented by background information on the specific social and environmental challenges faced in extracting the raw materials.
OCES is attractive both for investors and for companies wishing to take sustainability aspects into account when purchasing the raw materials they need and to minimise reputational risks.
On request, we will send you the sample commodity profile on gold. If you are interested in an evaluation of other commodities, for example aluminium, copper or timber, please contact us.
Contact:
Rolf D. Häßler, Director Product & Market Development
rolf.haessler@oekom-research.com
