Social and Environmental Performance Risk Assessment (OI9106)

This metric is intended to capture whether the organization systematically assesses risks to social and environmental performance. Examples of social risks to footnote, if relevant, include: mission drift, reputational risk, incidents resulting in harm to clients, client exit, employee dissatisfaction, incentives that can lead to negative behaviors among employees, lack of transparency, negative environmental impacts, gender inequalities and/or discrimination, and lack of implementation of policies, among others.

Examples of environmental risks to footnote, if relevant, include: license to operate, reputational risk, incidents resulting in harm to client or the environment (e.g., hazardous waste spills), negative social risks, risks to supply chain sustainability and security, regulatory risk, and climate risk, among others.

Organizations are also encouraged to footnote the frequency with which they assess social and environmental performance risks and whether their risk management procedures reflect social and environmental risk criteria.

Organizations can refer to the Smart Campaign's Client Protection Principles (www.smartcampaign.org) and the indicators in the Green Module of the SPI4 (http://cerise-spi4.squarespace.com/) for further guidance.

Organizations are encouraged to report this metric in conjunction with Social and Environmental Performance Reporting (OI4732) and Social and Environmental Targets (OD4091).