The client wanted to better understand the market perception of their portfolio companies in terms of their ESG (Environmental, Social, and Governance) initiatives and practices. With the recent increase in non-financial reporting and increasing consumer awareness of sustainable brands, our clients had been steadfast in publishing disclosures, in integrating a robust ESG programme into their core strategy, and in implementing initiatives to make their portfolio companies more sustainable. However, they lacked any real-time clarity around if/ how the market perceived these efforts and how they were perceived compared to their competition. They were looking to develop target KPIs based on consumer and market data and to build an ESG market perception index to assess and track the strength of their ESG image in real time.
Our Digital Intelligence team, working together with ESG and Asset Management experts, were able to design a unique ESG market perception index and tracker, based on digital data and consumer sentiment. We captured all online mentions of the portfolio companies and their competitors across all media types: news, blogs, forums, and social sites. Segmenting all the results into those related to one of the three pillars of ESG (Environment, Social, Governance), we extracted key metrics such as sentiment direction, total number of results, total unique authors, and engagement and integrated them into our custom scoring algorithm to produce composite indicators of ESG perception strength.
Visualising and benchmarking these scores in a dashboard enabled the clients to better understand current market sentiment as well as their current position within the market. It can also help the client to easily pinpoint any issues in the perception of its brand’s ESG as well as key strengths of their competitors, potentially impacting strategic business and investment decisions.
Director, PwC Luxembourg
Tel: +352 49 48 48 6102