Building a Scalable ESG Risk Assessment Framework
Building on the in-depth assessments delivered in Phase 1, a GCC sovereign investor needed to extend consistent ESG risk management across its full portfolio. dss+ developed a scalable framework and Excel-based tool combining industry-specific risks, a baseline assessment and company survey, enabling comparable oversight, targeted engagement and repeatable monitoring as the portfolio grows.
The challenge
The assessments delivered the depth the fund needed, but each was conducted on a company-by-company basis, making the process resource-intensive and difficult to scale as the portfolio grew.
Leadership recognised that scaling meant putting a practical tool in the hands of the portfolio companies themselves, on a common method that still gave the fund comparable oversight.
The approach
dss+ built an ESG risk assessment framework with an Excel-based tool combining a baseline risk assessment with a company survey:
- Populated industry-specific ESG risks, drawn from global standards, such as ESRS and ISSB, to identify and assess material ESG risks
- Captured financial and operational impacts, mitigation actions, and associated costs to support ongoing risk assessment
- Embedded KPIs to support prioritisation and targeted engagement with portfolio companies
- Included a survey on commitments, risk management, and disclosure practices for consistent interpretation of results
Impact on the ground
| 100% portfolio coverage one toolkit gave comparable ESG risk visibility at scale |
60+ industry-specific ESG risk topics helped portfolio companies assess material risk exposures |
3-tiered risk prioritisation gave the investment team a cadence for ongoing monitoring and engagement |
Focused ESG Oversight
“One framework gives the fund a comparable view of ESG risk across its entire portfolio, owned by the companies closest to the risk, and prioritised so the investment team knows exactly where to focus. It turns ESG oversight into a repeatable capability that scales with the portfolio.”
- Ahmad Al-Honjol, Director, dss+