The 2022 FM Global Resilience Index has been released and updated with 15 economic, risk quality, and supply chain measures that offer insights into the vulnerabilities of a country’s business environment and its resilience.
The interactive web tool has been enhanced with climate risks and environmental, social and governance (ESG) filters to enable better understanding of country-inherent risks linked to corporate board practices.
It offers two new index measures, climate risk exposure and climate risk quality, which will help businesses intensify their focus on emerging environmental perils, according to the commercial property insurer.
The former measure reflects such threats as severe floods and wind storms, while the latter reflects building codes, code enforcement, and facilities improvements.
FM Global noted this online tool enables decision makers to ‘find, slice, dice, and compare’ objective data about 130 countries and territories to inform strategic decisions as they site new facilities, evaluate their supply chains, assess their business risk around the world, and perform due diligence for mergers and acquisitions.
Pentti Tofte, staff senior vice president, data analytics, FM Global commented: “The 2022 FM Global Resilience Index is designed to support senior executives with preparing for – and adapting to – a dynamic risk landscape and to building business resilience responsibly.”
With stakeholder demands on companies increasing, the 2022 Resilience Index now includes country filters that present specific index data related directly to businesses’ climate risk and ESG interests, as organisations strive to become more transparent in their commitments and values.
The two filters will enable index users to focus exclusively on the climate risk- and ESG-related measures within the Resilience Index to better understand inherent country risks and identify opportunities through these lenses.
Additionally, in recognition of the impact of pandemic risk, the 2022 Resilience Index includes two new measures: health expenditure and supply chain timeliness.
Also, due to the availability of better-quality data, the Resilience Index now contains improved measures for cyber risk and energy intensity, a more comprehensive measure for 2022, broadened from fossil fuels to now include renewable and clean energy sources.
Tofte said: “Building resilience to achieve long-term sustainable outcomes is critical to business success, whether adjusting to war, navigating a pandemic, dealing with the threat of a changing climate, or meeting ESG demands.”