(The Financial Times) – “I told you so” is never pleasant to hear, particularly not if it is with respect to a company that has lost half its value after an accident has left it spewing oil all over the Gulf of Mexico.

But few are in a position to gloat, as analysts largely failed to predict the risk of such a catastrophic event and its potential impact on BP’s share price. The risk management of workplace safety and environmental damage is little represented in the figures reported by companies and rarely included in the spreadsheet models many investment analysts and managers rely on.

One exception is Philipp Aeby, managing partner of Ecofact, a Swiss consultancy that runs an equities data service called RepRisk. RepRisk monitors global press and other publications for criticism of companies relating to their environmental, social and governance (ESG) performance. This, Ecofact claims, is a useful indicator of the risks to a company.

For more on The Financial Times article, visit: http://www.ft.com/cms/s/0/f8ab92c8-7581-11df-86c4-00144feabdc0.html

[ASrIA note: Responsible Research Pte Ltd, an ASrIA member, is the exclusive research and distribution partner in Asia of RepRisk.]