November 16, 2022
In late 2020, Splunk Inc was the target of an investor-led lawsuit alleging securities fraud. In the aftermath of the scandal, the company valuation dropped significantly. Our news-based ESG Controversy Scoring Framework captured the various dimensions of this scandal.
On December 3rd, 2020, the American software company Splunk Inc was the target of a class-action lawsuit alleging securities fraud.
In the fiscal quarter of 2020, the plaintiffs claimed that Splunk Inc. failed to close deals with its largest customers and that the company was not meeting its previously stated financial targets. They also claimed that the management had made misleading statements and failed to disclose financially relevant information.
The company lost up to 45% of its value in the weeks following the scandal.
Our news-based ESG Controversy Framework captured the various dimensions of the Splunk scandal as follows:
It's often difficult to follow all the news to build a complete ESG picture about a company, particularly when events are less reported. Leveraging local and global newswire coverage, the RavenPack ESG controversy framework allows investors to identify companies involved in controversial events before the information reaches the mainstream media. Beyond controversies, RavenPack’s decades-long news archive is a unique source of sustainability signals.
Check out other ESG controversy case studies, to further learn how the RavenPack ESG Scoring Framework works. Or explore the tool and see for yourself how it can help you stay on top of ESG controversies impacting your brands or portfolios.
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RavenPack’s ESG Controversy Scoring Framework is based on real-time detections of events across 40,000+ news sources in 13 different languages.
It follows an event-based approach that can help assess the extent of a firm’s ESG controversy exposure through time by monitoring real-time news coverage.
Sustainability factors can severely impact the financial performance of companies, and investors should account for ESG risks in their portfolio construction process. We analyze the relationship between ESG controversy events detected in RavenPack Edge, and share prices of listed equities.
Two Boeing 737-MAX aircraft crashed in 2018 and 2019. Investigations revealed that the fatalities were caused by the Boeing-developed MCAS and a lack of pilot training.
The September 2015 dieselgate scandal has cost Volkswagen AG more than $34 billion in fines and settlements. The various dimensions of this scandal were captured by our news-based ESG Controversy Scoring Framework.
Our news-based ESG Controversy Scoring Framework captured the different dimensions of the 2010 environmental scandal for BP, as well as other subsequent events, like an industrial fire at a BP refinery in 2012.
Last summer, Activision Blizzard was accused of covering up allegations of workplace abuse, harassment, and discrimination, which led to employee walkouts and protests. Our ESG Controversy Scoring Framework detected it.
Tracking the ESG events surrounding companies, products or individuals associated to
your brand, portfolio or supply chain can help you manage corporate and investment risk.