Methodology
Strategy&'s digital intelligence methodology captures ESG market and online investor conversations from over 150 million global public data sources. These sources include a diverse range of channels ranging from newspapers, magazines, radio, and TV to social media platforms like YouTube and X. We use advanced analytics, natural language processing, machine learning and artificial intelligence, combined with data and ESG experts. With our ESG experts we have defined the following nine key ESG topics, which we will assess each quarter.
ESG topics that we assess
Exploring how waste minimisation, resource efficiency, and sustainable consumption are transforming industries, thereby creating new investment opportunities.
Tracking efforts in wildlife preservation, ecological restoration, and the protection of endangered species, which are critical for maintaining ecological balance and identifying investment trends.
Evaluating the impact of social justice, civil rights, and equal access to fundamental freedoms on investment strategies.
Assessing the role of inclusive practices and diverse representation in driving investment. This includes evaluating pay and gender gaps, promoting board diversity, and advocating for equal employment opportunities to attract socially conscious investors.
Monitoring corporate governance, ethical practices, and transparency to ensure accountability and trustworthiness in investments. This includes corporate social responsibility (CSR), transparent reporting, financial disclosures, and adherence to ethical standards.
Investigating sustainable use of ocean resources, marine conservation, and the economic benefits of preserving our oceans, related to investments.
Analysing the shift towards renewable energy, carbon reduction strategies, and the path to net-zero emissions. This involves implementing the Paris Agreement, promoting clean energy, carbon taxation, achieving net-zero emissions, and supporting carbon offset initiatives.
Identifying and mitigating the risks of deceptive environmental claims to maintain the integrity of sustainable investments.
Keeping ahead of evolving ESG regulations, policies, and frameworks that guide responsible investment practices. This includes TCFD, double materiality assessment, and adherence to principles like the Global Reporting Initiative and the EU Taxonomy.
Glossary
- Mentions: Articles, retweets, shares, or posts that include one or more of the query keywords (e.g., circular economy) at least once in the text. These keywords help track how often and in what context certain subjects are being discussed online.
- Engagement: The likes, comments, retweets, and shares received on a mention. The higher the engagement the more “popular” and visible a mention was.
- Query: Text-mining query using natural language processing to identify relevant mentions (e.g. renewables or energy transition)
