Strategic Focus: The Role Of Sentiment Monitoring Technologies For ESG & Sustainability

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Executive Summary

ESG risks have taken centre stage in many organizations due to increasing pressures from stakeholders, customers, investors, shareholders and suppliers. Failure to effectively manage these risks can result in significant financial costs and reputational damage. Digital tools for sentiment monitoring allow investors and ESG decision-makers to track stakeholders’ attitudes towards ESG issues, allowing a better understanding of how different factors and events may impact a firm's ESG performance. This report will explore the benefits, limitations and use cases of sentiment monitoring tools to guide corporates and investors in making informed ESG-aligned decisions.

Table of contents

Sentiment monitoring solutions contribute to ESG and sustainability performance management
Five use cases of sentiment monitoring tools for ESG and sustainability

Organizations must be aware of sentiment monitoring limitations
Firms should consider sentiment monitoring tools to improve ESG risk management

Table of figures

Figure 1. Data architecture and use cases of sentiment monitoring analysis
Figure 2. Five use cases of sentiment monitoring analysis

About the authors

Elisa Molero

Industry Analyst
Elisa Molero is an Industry Analyst in the Verdantix ESG & Sustainability practice. Her current research agenda focuses on emerging solutions and global market trends around supply chain sustainability. Her background is in Economics, Leadership and Governance (BSc, University of Navarra). Prior to joining Verdantix, Elisa worked as a research analyst at the Centre For Economic Performance at the London School of Economics, where she completed a Master’s degree in Global Politics, with Distinction.

Kim Knickle

Research Director, ESG & Sustainability
Kimberly Knickle is Research Director of the ESG & Sustainability practice at Verdantix. Her research areas encompass ESG regulations and reporting, ESG risk, supply chain sustainability, circular economy, social impact, and sustainable finance. Kim has worked for more than 20 years in the IT industry, providing research and analysis to help companies invest wisely in new technologies. Before joining the analyst industry, she held various roles in IT services, engineering and product safety testing, beginning her career at Underwriters Laboratories, Inc. Kim holds an MBA from Boston University and a BS in Electrical Engineering from Cornell.

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