Usman, it is possibly correct that standard ESG research cannot see such risks coming since it relies on public corporate information.

However, 'primary research' based ESG can see such risks coming. We have been practicing exactly this over last 8 years. And every time we have been asked by clients to apply this primary ESG research to look at specific stocks, we have been able to see risks in advance.

Examples - $20 Bill Petrobras scandal in 2012, $45 Bill OGX bankruptcy in 2012, 25% drop in share price in GSK since 2013 etc etc.

Here is a link, describing how primary ESG research delivered alpha in above stocks, ahead of time:
https://www.youtube.com/playlist?list=PLbeNaMYwn5kccHD16XPrJ4b_X_BHP3kSR

One caveat though - we have not been asked to do this on 3000+ index stocks that the market mostly tracks. Clearly it is more time consuming and expensive than off-the-shelf secondary research that is easily available.

Can everyone do this? Definitely. We have freely shared our approach in the webinar link above. Only research needs to give up its focus on quantity and go deep-dive on individual stocks to stand any chance to see risks in advance.