Alternative ESG

We create tangible value from ESG intangible assets of the companies

Innovative and integrated services aimed to boost value from companies intangible assets related to sustainability.
We measure and bridge the gap between what the company writes in the sustainability report and communicates and the external sentiment.

Dedicated to ESG Management, Investor Relations, Asset Management, Credit & Risk Management

The importance of intangible assets.

Intangible assets are responsible for 87% of the S&P 500 market value.

Companies are now aware that being leaders in sustainability issues is going to impact in corporate evaluation. Corporate sustainability is built by its intangible assets, and ESG – environmental, social and governance – factors are the main criteria to measure them.

ESG performance and value creation.

A recent study* revealed that companies with a high ESG rating performed better in terms of budgetary outcomes and stock returns. As a consequence, there is a need for new models of ESG performance analysis, which could help companies to manage risks and opportunities and to increase profit and value on the long term.

*Banor SIM in partnership with the Politecnico di Milano; data refer to 882 stocks comprised in the Stoxx Europe 600 Index in the period 2010-2017.

External Alternative Data as measuring factor.

Measuring ESG performance only through in-bound information (data published by the company itself) could lead to an incomplete assessment, as data is partial and the nature of such disclosure is strictly connected to the particular reporting framework chosen by the company.

Therefore integrating such assessment with the analysis of great amounts of external Alternative Data – by adopting an AI-based approach – provides a more complete view of which are the corporate opportunities in terms of performance increasement associated to specific strategies and more efficient activities.

Why reporting on sustainability

  • Increasing corporate performance
  • Increasing transparency towards stakeholders
  • Favouring profitability on medium-long term
  • Acting in a view of shared value creation
  • Improving corporate reputation
  • Increasing customers and stakeholders’ loyalty
  • Favouring the relationship with local communities and administrations

To learn more about the use of Alternative Data for companies’ ESG assessment, become a free member of  this LinkedIn group.

Main challenges

Evaluating sustainability:

companies should have tools to assess their sustainability performance based on updated data coming both from inside and outside their organization

Planning sustainability:

companies should be able to plan a sustainability strategy suitable to their business model (by identifying specific areas for improvement)

Communicating sustainability:

the dialogue with stakeholders should go through an accurate and effective communication

Monitoring sustainability:

planning a credible sustainability strategy is not enough, as it is necessary to identify performance indicators to measure the state of achievement of planned objectives

FinScience ESG offering

An integrated and innovative service, aimed to identify and increase corporate sustainability-related intangible assets to increase profitability and value.

Sustainability assessment based on internal and external data.

Output
a.

SDG digital matrix to measure the positioning of the company with respect to ISO26000 categories and the 17 Sustainable Development Goals through the analysis of internal data, the importance of the SDG issue for the company sector, the level of “digital popularity” of the issue in relation to the company, the digital “sentiment” relating to the SDG issue with reference to the company)

b.

Action plan prioritising planned activities, and identifying strategic KPIs to improve corporate positioning on ESG criteria.

Definition with the client of a strategic communication plan based on specific goals

Output
a.

Communication on strengths/improvements in respect to negative perception (preventive action)

b.

Ongoing activity of external communication of main results

c.

Diversification of communication activities in order to enhance all internal channels (newsletter, social networks, website)

d.

Organization of events on specific topics for the valorization of some sustainability issues that are strictly connected to the main company objectives

Constantly tracking the impact of performed actions based on identified KPIs and compared with peers

Output
a.

Ongoing monitoring through dashboard on sustainability issues and the digital corporate perception by different stakeholders

b.

Monitoring of direct and indirect competitors through a dedicated dashboard

c.

Communication of results

To learn more about the use of Alternative Data for companies’ ESG assessment, become a free member of  this LinkedIn group.

Benefits from our integrated and modular approach

  1. Scalability
  2. Activities and results in a short time
  3. Analysis of external  ESG corporate data
  4. Prioritization of actions to be performed
  5. Minimization of internal effort

The added-value of Alternative Data for ESG assessment

Find out more about FinScience’s services and solutions most suited to your business.