In an era of growing regulatory pressure and public scrutiny, staying ahead of ESG-related risks is more important than ever. That’s why we’re introducing UNGC Violation Screening, a powerful new capability that automatically flags ESG controversies potentially breaching the United Nations Global Compact (UNGC) Principles.
Built with compliance and transparency in mind, this feature enables you to:
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- Stay ahead of reputational and compliance risks
- Evaluate global norm breaches with a standardized lens
- Focus your attention on the events that matter most
Powered by advanced AI and large language models, SESAMm classifies millions of ESG events in real time, helping you prioritize reputational and compliance risks at scale.
Why UNGC Violation Screening Matters
Whether you're tracking supply chain risks or screening investments for SFDR alignment, SESAMm’s new feature offers a standardized approach to evaluating potential UNGC breaches. It helps you:
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- Stay compliant: Built to align with the 10 UNGC Principles and SFDR PAI 10, this feature supports streamlined compliance workflows and helps ensure you're meeting disclosure and due diligence obligations.
- Surface critical risks fast: Quickly detect ESG controversies tied to UNGC violations, without relying solely on manual review.
- Quickly prioritize critical ESG issues: Standardized risk scoring cuts through irrelevant noise.
Three Levels of Risk Classification
Each ESG controversy is categorized by severity:
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- Violator: Clear and explicit breaches of the UNGC Principles, backed by evidence such as official sanctions, public admissions, or substantial regulatory fines.
- Watchlist: Potential serious violations where evidence is partial or inconclusive. These events suggest possible misconduct but fall short of confirming a clear breach.
- Low Risk: Events that raise concerns but lack evidence of a UNGC violation. While no breach is confirmed, these cases still merit monitoring.
Each classification includes a justification, offering full transparency into the rationale behind the label. For example:
"Shein’s acknowledgment of child labor practices within its supply chain raises serious concerns regarding human rights violations and labor standards. The company’s prior actions [...] indicate a high-risk breach of multiple UNGC principles.”
A Closer Look: Rio Tinto
Consider the case of Rio Tinto, which agreed to pay a $15 million fine following foreign bribery charges. The company was accused of making improper payments to a consultant linked to a former Guinean official to secure mining rights in Guinea. Since then, Rio Tinto has cooperated with the investigation, improved its internal controls, and terminated employees involved in the misconduct, while maintaining its commitment to ethical business practices.
While serious, SESAMm’s UNGC Violation Screening labeled this incident not as a full violation, but rather Watchlist level. Why? Because investigators acknowledged that the company:
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- Cooperated with authorities
- Was unaware of the employee’s misconduct
- Took disciplinary action and corrective steps
This demonstrates the power of SESAMm’s nuanced approach: balancing evidence and context to provide actionable, explainable insights.
UNGC Screening: Designed for Today’s Compliance Landscape
As expectations rise, investors, sustainability teams, and risk managers need tools that go beyond checkbox compliance. SESAMm’s UNGC Violation Screening delivers speed, clarity, and global coverage, helping you meet your due diligence goals and protect against reputational fallout.
Ready to integrate UNGC breach detection into your workflow? Contact us to learn more or request a demo.
SESAMm’s AI Technology Reveals ESG Insights
Discover unparalleled insights into ESG controversies, risks, and opportunities across industries. Learn more about how SESAMm can help you analyze millions of private and public companies using AI-powered text analysis tools.