Enhancing ESG Risk Analysis: The Role of Adverse Media in Supply Chain Monitoring
In our recent blog, Why Traditional ESG Scores Fall Short in Today’s Regulatory Landscape, we discussed the challenges of depending solely on ESG scores for supply chain monitoring. In this follow-up, we explore how adding an “outside-in” approach with adverse media monitoring can elevate your ESG risk analysis to the next level.
What Is Adverse Media Monitoring?
To understand adverse media monitoring in the context of ESG, let’s first define what it entails. At Owlin, we describe adverse media monitoring as the monitoring of organizations for negative coverage across official and unofficial online sources. For ESG purposes, adverse media signals could include:
- Negative reviews from customers about a company’s environmental or social practices.
- News articles accusing a company’s executives of unethical behavior or governance failures.
- Reports of a company facing significant environmental or social controversies.
- Claims that a company is not adhering to fair labor practices or sustainable sourcing.
Challenges of Manual Adverse Media Monitoring
However, manually checking for adverse media—for example, by conducting daily Google searches—can be time-consuming, labor-intensive, and prone to costly errors. This is especially true when teams search for risk signals in different languages and many companies are monitored (the supply chain). Moreover, in an ideal situation, adverse media monitoring is not a one-time process but an ongoing activity.
Leveraging Technology for Adverse Media Monitoring
Therefore, companies that want to monitor their supply chains effectively should consider implementing innovative technology tools in their ESG monitoring practices. Automating adverse media monitoring processes allows for more efficient checks, surpassing the capabilities of manual methods.
By leveraging technological advancements, particularly AI-based tools like Natural Language Processing, teams can analyze large amounts of data from around the world. This enables them to quickly identify potential ESG violations in real time, regardless of the entity’s size or location.
How Owlin Enhances ESG Monitoring with Adverse Media
To optimize supply chain monitoring, companies should incorporate alternative data sources, such as adverse media, to enhance their intelligence capabilities. Owlin’s platform is particularly effective for providing this outside-in view, as it analyzes millions of sources in 17+ languages in near real-time, offering comprehensive global coverage.
Customizable, Scalable Solutions for Effective Supply Chain Monitoring
Owlin enables businesses to make well-informed decisions and proactively manage ESG violations in their supply chains by doing so. Users can customize filters to receive the most relevant information tailored to their needs and be alerted when a breach is detected. The platform seamlessly integrates into existing workflow systems, offering flexibility and scalability for a comprehensive ESG monitoring solution.
Schedule a demo today
Curious about how Owlin can help you quickly capture and evaluate adverse media, ensuring that potential issues don’t slip through the cracks between periodic reviews or make their way into financial statements? Schedule a personalized demo today to see how our platform can enhance your ESG monitoring.