WEBRANKING BY COMPREND

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1 WEBRANKING BY COMPREND FT EUROPE th EDITION April 2016 TRANSPARENCY STRESS TEST Webranking helps companies understand how to meet the growing demands of stakeholders in terms of transparency and dialogue through digital channels. Europe s leading survey of corporate websites and the only global ranking based on stakeholder demands

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3 60% 50% 40% 30% 20% 10% Spotlight on European companies : The key findings 3 Surveys 9 Seen through the lens of Europe s 500 largest companies by market capitalisation, evaluates a company s ability to distinguish itself in an increasingly competitive and challenging business environment. Being able to articulate the company s position on corporate issues via digital channels, translates into an ability to respond to potential crises and also generates consistent opportunities to build engagement with key stakeholders. Contents 2 3 Spotlight on Europe s largest multinationals 2015: The key findings from this year s research Key figures is Europe s leading survey of digital corporate communications 19 th international edition 497 largest companies ranked in Europe 802 companies ranked globally 100 maximum number of points from the protocol that cover all aspects of corporate communication 460+ responses to the two questionnaires dedicated to the financial community (Capital Market Survey) and to jobseekers (Careers Survey) Europeans giving little love to information CSR is here to stay Careers: attracting the best talent User experience takes a hit How we conducted the research What stakeholders want Jobseeker: in search of personalisation and ease of use Digital manager: strategy and analytics top the agenda 2015 Europe 500 The Webranking research helps companies understand how to improve their communication to better meet the needs of stakeholders, by comparing themselves to their international peers. It is the only research which, by annually investigating the needs of different stakeholders, gives a voice to website users. For further information about the research and to order the report contact: helena.wennergren@comprend.com 1

4 Spotlight on Europe s largest multinationals as they face the communications stress test Based on the demands of stakeholders, Webranking works as a stress test in that it measures the fundamentals of online corporate communications and digital dialogue. To measure how effectively companies are responding to market demands, the latest edition of the research has increased the weight of core information, i.e. information that stakeholders consider to be most important. According to this year s results, the largest multinationals in Europe have improved their communication activities. As the criteria in the survey is based on the needs and expectations of stakeholders obtained through annual surveys of investors, journalists and jobseekers half of the maximum score (50 points out of 100) is considered the threshold at which companies respond adequately to capital demands. European companies improving This year, 127 European companies pass the test (scoring above 50 points), up from 92 in 2014 and 79 in This improvement is confirmed by the average rising by 2.8 points to 41.9 points out of 100, meaning 25% of companies pass the stress test, up from 18% last year. Most improved are Polish basic resources company, KGHM; Swiss telecoms company Swisscom; and Italian insurance company Generali, which each improved by more than 17 points respectively. The failure rate, or those companies at the bottom of the ranking which do not meet the minimum content required by the market, decreased significantly from 29% to 16% this year. Despite this improvement, well over half of companies (59%) still achieve between points (finding themselves in the held back category), meaning that 3 out of 4 companies are not passing the test. Low scores were predominantly found in areas related to investor relations, a worrying trend given that listed companies should primarily be serving investors. While it is great to see European companies improving their digital communication, the low scores achieved by companies in the investor relations sector is deeply worrying. Staffan Lindgren, Managing Partner, Comprend More weight given to stakeholder priorities The protocol is revised annually, and this year the protocol evolved even further giving more weight to what stakeholders expect. It increased the weight given to core information (which is the information most highly requested by stakeholders, such as strategy, growth drivers, market position, geographical data and sustainability). In this way, Webranking becomes an important stress test regarding the effectiveness of digital corporate communications. Webranking Europe European companies evaluated 100 maximum number of points (protocol based on stakeholders needs) +2.8 improved average score since % 16% Europe 25% Passed (50 points or more) Held back (between 30 and 50 points) Failed (less than 30 points) Top 10 Eni 89.1 points Telecom Italia 86.6 points Snam 85.9 points Wärtsilä 84.5 points Skanska 80.3 points Generali 79.5 points Fortum 79.1 points Swedish Match 77.2 points SCA 75.4 points Bayer 73.2 points 2

5 2015 The key findings from this year s research European companies are competing on a global scale and communicating to a worldwide audience. With this comes the increasing importance of reaching a diverse set of stakeholders (investors, journalists and jobseekers) in significant ways. With 3 out of 4 companies failing the stress test, most companies are not serving investor needs. Tangible information to back up strategy missing A company s business strategy is an important piece of information for stakeholders and customers alike, as it illustrates the company s future vision and growth. European companies are generally good at outlining their business strategy, but fail to satisfy capital market needs when it comes to presenting tangible information to back this up. Items which should be provided include megatrends, financial outlook and risk management. Read more on p. 4 Sustainability reporting numbers up Investing in and communicating about sustainability is becoming increasingly important. Reporting numbers in Europe may be increasing, but there is an interpretation issue between what sustainability and CSR mean for stakeholders, what the GRI guideline definition is, and what companies are actually reporting on. Read more on p. 5 The war for talent is on When it comes to recruiting future talent, European companies are competing on a global scale. It is therefore important to invest in this area to stand out and attract the best future talent. Researching future talent also signals the ability and willingness of the company to look towards the future. European companies are getting better at communicating with jobseekers, though areas of weakness remain. While 68% present information about the company on the careers page, only 5% present a personal HR contact, a number unchanged from last year. Read more on p. 6 Responsive sites surge, but user experience suffers An increasing number of European companies invest in responsive websites (the ability to adapt to different devices, from mobile to tablet). However, slow loading sites, especially on on mobile platforms, negatively affects user experience. Read more on p. 7 Mind the gap: how Europe s largest companies are responding to stakeholder needs On the following pages, we look at how companies meet the expectations of key users, namely consumers, future talent looking for work, the capital market and the media. FT Europe 500 performance by section compared with top 127 passing companies Social media and search Start page and functions 70% 60% About us 50% 40% Careers 30% 20% Press 10% CSR Reporting 127 passing companies EU 500 average Governance Investor relations The share Source: Webranking by Comprend

6 Europeans giving little love to information deemed crucial by investors and journalists Being transparent online is crucial in building trust with customers and stakeholders. Less than a third of European companies, however, are meeting capital market needs when it comes to presenting clear cut information on investor relations. Whether the capital market considers a company a trustworthy investment is partly in the hands of the organisation itself. Companies can insure effective communication and work towards building a good reputation. Compared to last year, the Investor Relations section improved slightly (30% vs. 25%). Despite this, the Webranking research shows a significant gap between stakeholder expectations and what European companies actually present on corporate websites. This difference is outlined in the graph below. The five areas considered are drawn from annual surveys, which ask stakeholders to define what information they deem most important. The results show that European companies are lagging behind market expectations in four out of the five areas identified. In fact, European multinationals only come close to meeting stakeholder expectations on strategy, with 75% of European companies providing this information, up from 65% last year. Less than a third of European companies meet market needs Simply providing an outline of the strategy is not the same as providing concrete actions as to how a company plans to achieve its business goals. Being open about the goals a company sets for itself, while outlining responsibilities such as debt repayments and the procedures to confront possible risks, provides a more holistic picture of the company s potential and growth. Further to this, explaining market influences, such as future trends and challenges in the market, shows that the company is aware of its position. It also gives stakeholders that may be unaware of the sector in which the company operates in a better picture of the company. Disappointingly, 75% of European companies do not provide this information, despite well over half of stakeholders deeming its importance. The data clearly shows that European companies are reluctant to present the nitty-gritty data expected by the capital market. Information such as risk management, debt, financial information and megatrends are being ignored from the largest multinationals across Europe which is problematic, given how important these topics are to stakeholders. Helena Wennergren, Head of Marketing, Comprend Adding value by focusing on tailored content The annual report is a document legally required in the public domain and nearly all European companies (97%) present a PDF of the annual report on their corporate website. An increasing number of companies publish an online annual report (40%) and although the HTML report is still not the norm, this number has almost doubled since 2014 (where 25% of companies offered a fully digital report). A trend we see is that more European companies are abandoning exact replicas of the PDF online annual report. Instead, companies are focusing on diversifying content and highlighting areas by adding animations, video and interactivity. Some opt to do this with a hybrid report, where content tailored for the web adds value and is supported by financial statements and notes as PDF or spreadsheets to download. Capital market expectations vs. European companies presenting said information Information requested by the capital market 100% 75% Capital market European companies 50% 25% 0% Financial goals Strategy Megatrends Risk management Debt Source: The graph represents the difference between stakeholders expectations (% of those who consider certain information important, having rated it 3 or higher (maximum is 5) and what companies actually offer (% of companies offering the information). 4

7 CSR is here to stay, but have European companies received the memo? Reporting on CSR activities is no longer seen as a nice to have. Stakeholders now expect companies to involve them in the process, and are judging companies on what targets are set, achieved and how developments are reported. Best in class in sustainability Eni Telecom Italia Snam The GRI are the most widely used and recognised standards on sustainability reporting and disclosure across the globe. These guidelines should be a point of reference for all European companies serious about acting and reporting on matters of CSR in a clear, concise and transparent manner. The Webranking protocol reflects these guidelines and assesses companies on their ability to meet them. Karolina Dubowicz, CSR Specialist at Hallvarsson & Halvarsson CSR issues prone to misinterpretation by companies When it comes to CSR related matters, companies and stakeholders may be coming from two very different angles. Broad categories of stakeholders now expect major companies to be responsible and transparent about social and environmental issues, yet few European multinationals are actually reporting on these factors. Instead, many companies are prone to considering charity initiatives a job well done on this front. While CSR certainly encompasses charitable initiatives, it s reach and significance is also much broader and more significant than that. In fact, companies that only focus on this area of CSR risk being seen as complacent. Disclosure on CSR target figures disappoints As mentioned above, disclosure is an important part of the CSR reporting process. Companies that are transparent about environmental/social targets and outcomes show a willingness to improve in this area. Discouragingly, the number of European companies publishing this information has failed to increase significantly. An increase of only 1 percent of companies publish environmental targets (30% vs 29% in 2014), and only 31% present social targets, down from 34%. Despite issues of disclosure, reporting numbers are up 73% of European companies publish a CSR report in PDF format, up from 52% last year. While reporting numbers are up across all European companies, it is interesting to note that many of these companies are moving away from publishing an online report, which is down to 16% from 22% last year. Of those who do not publish a report, 12% of companies have a CSR strategy in place. This raises the question as to whether some European companies actually have a CSR report in place but have forgone, or chosen against, publishing it on the corporate website. Despite reporting numbers increasing, defining what exactly the company s priorities are in cooperation with key stakeholders is largely missing. This process, known as a materiality analysis, is presented by only 28% of companies. Not publishing these key priority areas is, however, not stopping some companies from publishing a CSR report. In fact, 19% of companies who do not publish a materiality analysis still have a reporting process in place. This leaves the suspicion that some companies are working on their own agenda. One to watch: BASF BASF s materiality analysis is a well thoughtout analysis piece. As well as showing the impacts by issues along the value chain, the company explains how it came to prioritising the company s eight sustainability topics by involving its key stakeholders. 73% Publish a CSR report (52% in 2014) 28% Present a materiality analysis (22% in 2014) 68% Present a CSR strategy (66% in 2014) 30% Present environmental target data (29% in 2014) 5

8 Careers: attracting the best talent The corporate website remains the go to information source for jobseekers to learn more about a company. New social media apps widen the opportunity for companies to engage. Best in class in career information Roche Snam Telecom Italia What jobseekers are looking for Our Career Survey reveals that candidates increasingly want to understand the business context in which the company operates, what career options the company offers and what training programmes are made available. Well over half (61%) of European companies provide this information, up from 37% last year. Moving beyond the website Moving beyond the corporate website to engage with future talent is increasingly important, as 79% of jobseekers use social media channels to hunt for relevant career information. Despite this trend, less than half of European companies publish information relevant to students and jobseekers on these channels. For some international companies, LinkedIn and other new outlets are filling this gap. Recruitment focused websites such as Glassdoor have expanded their remit to include services for employers, offering effective employer branding solutions to help reach the right candidates. Today s jobseekers, many of which are Millennials, use social media as a way to engage with companies when looking for jobs. This will only increase in the future, so investing in social media capabilities means investing in the future ability to attract and engage jobseekers. Tommie Cau, Talent Communication specialist, Comprend 46% Present recruitment information on LinkedIn (34% in 2014) 68% Present job vacancies on their corporate website (70% in 2014) 39% Present testimonials from employees (34% in 2014) 5% Present an HR contact (4% in 2014) 6

9 User experience takes a hit An increasing number of European companies invest in responsive design, yet user experience still suffers. Less than half of European companies use social media. Responsive websites increasing 60% of European companies now invest in responsive websites (the ability to adapt to different devices, from mobile to tablet), up from 24% last year. The problem, however, is that many of these sites have poor loading speeds. The Google site speed test reveals that only 35% of companies reach the fastest loading speed on a desktop and a mere 3% reach this level on a mobile device. Having a responsive website makes little difference if the speed at which it loads at on mobile devices is too slow. Europe s biggest multinationals need to make this a priority area going forward. Less than half of European multinationals are using social media A well designed corporate website should be a one stop shop. Presenting social media information on the site saves the user having to go find the company s account across various channels themselves. That said, less than half of European companies have a Twitter account for corporate information, only 34% present their social media feeds on their website and only 16% provide links to their social media pages on their website. Navigating to a website on your mobile and having to wait ions for the page to load is incredibly frustrating. Investing in a responsive website in itself does not mean companies are providing a satisfying user experience. This needs to become a priority, and fast. Caroline Becker, Project Manager Webranking by Comprend Austria, Italy and Switzerland, Lundquist 60% Have a responsive website (24% in 2014) 34% Embed social media feeds on their website (26% in 2014) 35% Fastest loading speed on desktop 3% Fastest loading speed on mobile 7

10 How we conducted the research Over the past 20 years, the Webranking research has become the most recognised analysis in Europe regarding digital corporate communication. The objective of the research is to help businesses better communicate with stakeholders and to understand their priorities. This year, the research has been improved to reflect the needs of stakeholders even more. 497 European companies assessed along with more than 800 globally Comprend s Webranking research is the most well-known analysis of corporate and financial communications in Europe. The study is a well-honed instrument not only for measuring the efficiency of online communications, but also to help companies compare with national and international peers. The European ranking evaluates companies that are in the Financial Times Europe 500. The research also includes a global ranking that evaluates the largest 100 companies in the world included in the Global 100 index by the Financial Times. Taking into account the ranking of companies based in North Africa and the Middle East, a total of 802 companies worldwide were assessed. The study evaluates the English language version of corporate websites. The stages of the research The research consists of three steps. First, every year Webranking criteria are updated based on the results of questionnaires dedicated to the capital market and jobseekers in order to reflect new needs. The second stage applies stakeholder expectations, in the form of an evaluation protocol, to all the companies included in the research to test how well they perform. Then, each company is given a score. The last step is the data analysis and the presentation of the research results, in addition to the collection of international best practices and trends. How are the companies evaluated? The evaluation protocol of is composed of 100 criteria, divided in 10 sections, making up a total score of 100 points. Financial information (the presentation of financial statements, investor relations information, title information and corporate governance) have grown in importance over the last year, totalling 48 points. The criteria dedicated to the site s positioning on search engines and the presence and use of social media make up a total of 6.2 points. They are integrated within the sections, as in previous years. Major focus on information relevant to stakeholders This year Webranking focuses more on the needs of the most important stakeholders. In this way, the research becomes even more of a stress test on the effectiveness of digital corporate communications. The various phases of the research Survey Protocol Evaluation Results 461 responses to the two questionnaires dedicated to the financial community (Capital Market Survey) and to jobseekers (Careers Survey) Protocol used for the evaluation for a maximum of 100 points 497 FT Europe 500 companies ranked 802 ranked globally Whitepaper with the results 19 th European edition and 497 FT Europe 500 companies evaluated 802 companies evaluated globally 8

11 What stakeholders want The questionnaires addressed to the capital market (analysts, investors and financial journalists) and jobseekers, conducted annually, are the basis for defining the criteria and their weight (in points). Further to these, a questionnaire addressed to digital managers is conducted, helping to illustrate what the technological and editorial trends are. Capital market: Contacts, strategy and outlook amongst the information most sought after Bottom line of requests Journalists Easy access to information is key Investors and Analysts Detailed and interlinked information More than 340 professionals, including journalists, analysts and investors, hailing from 5 continents, have provided their responses on how they use and what they expect from institutional sites. Analysts and investors Not only reports and data, investors and analysts are also looking for useful information to help them understand the company s investment story, such as: strategy, market position outlook and target geographical areas. The presence of contacts for investor relations, preferably personal as opposed to generic, remains fundamentally important. Reporters are more traditional in the way they use information. With regards to reading the annual report, they still prefer PDF format, but often use their mobile devices to access the latest information. Journalists In recent years, journalists have changed the way they search for information, with online sources (such as social media and blogs) growing in importance. The survey also evidences a notable decrease in those consulting traditional press releases. In fact, journalists are more likely to consult social media outlets compared with analysts and investors more than 80% say they use social media regularly. The results of the Capital Market Survey also show that journalists go on the site not only to look for the company s key numbers, but also to better understand the business and its vision of the future. The ideal company website should present information in an easily accessible manner. For this reason journalists ask for an evolved internal search engine and an organised and easily searchable archive of press releases. There is also an increase from last year in their interest in infographics and multimedia content such as video presentations of the business and interviews. 341 responses worldwide 42% 15% 13% Majority read annual reports on screen 89% of analysts prefer to have the annual report in PDF format Journalists Investors Analysts Other 30% Source: Capital Market survey Increasing interest in multimedia content 42% of those surveyed say it is important to have a video that explains the business (up from 29% in 2011) 9

12 Jobseeker: in search of personalisation and ease of use The job search becomes digital Whilst the corporate website remains the main source for jobseekers, there is an increasing need for companies to get in touch with jobseekers through various channels, to engage in a more personal exchange. Two thirds of the jobseekers who responded to the Webranking Careers survey want to receive career information through different channels. LinkedIn remains the favourite channel, followed by Facebook and Glassdoor, by which to gather information on the employer. Standardised forms rejected A key moment of interaction between candidate and company is during the application process. The presence of career forms on websites creates an impersonal barrier for users and often presents a profound break from the more open and empathetic communication style found throughout the careers section. The ability to apply via LinkedIn reflects a desire to have a simple, direct and more personal mode of interaction with the employer and candidate, which is something not normally found in the standard career form. What jobseekers say: Long-winded application forms are too timeconsuming. Filling forms are a waste of time. I want a personal contact who has reviewed my CV or LinkedIn profile. A lot of companies still use very old fashioned ways in their recruitment process. I think this is a safe way to make sure you don t attract the best applicants. Jobseekers interviewed from 20 countries Main channels used for seeking work 24% 35% 80% 60% 58% 60% 66% 40% 31% 38% 41% 20% 0% Glassdoor, HR websites LinkedIn Friends Corporate years old Facebook, company & contacts website years old Twitter page years old Source: Career survey 10

13 Digital manager: strategy and analytics top the agenda Yes to content, but where s the strategy? Over the past few years, content marketing has become an important staple for digital teams, as they increasingly look to produce high quality and frequently updated content. Despite the majority of digital managers recognising the strategic importance of content and 38% stating they work with content marketing, only 24% of companies have a clear content strategy. It is therefore not surprising that none of the web managers surveyed were satisfied with the company s presence on social media, as without clear strategic guidance, it is difficult to derive value from these initiatives. There s hope: growth in use of analytics Although only half of the respondents say they work with the analytics of the site and have measurable objectives (KPI), it is positive to note that the figure has increased compared to last year, and that another 34% of the those interviewed plan to use them within the end of the year. The challenges digital managers face SEO, Social media engagement strategy & implementation. Refining metrics for our digital communication strategy. Further develop a responsive website. Our biggest challenge is finding good content. Time, money, resources. Transparency in social media. Digital managers responding to the survey respondents countries companies 53% are included in the FT Europe 500 Use of KPIs growing Digital managers using a content strategy 24% 37% 34% 51% 24% 76% % 15% Source: Corporate Web Manager survey Using KPIs Not using KPIs No use of KPIs, but plan to in future No content strategy With a content strategy 11

14 2015 Europe 500 Ranking of the 50 best corporate sites in Europe Posizione 2015/16 Posizione 2014/15 Azienda Punteggio ; 1 Eni y 3 Telecom Italia Snam y 5 Wärtsilä y 8 Skanska y 23 Generali ; 7 Fortum Swedish Match I SCA y 15 Bayer y 32 DSM SKF y 17 ASSA ABLOY y 16 Pirelli Electrolux BASF y 80 Swisscom Danske Bank y 21 Munich Re y 24 ABB y 27 Neste Oil y 54 Stora Enso Repsol Orkla Terna y 35 Deutsche Post Swedbank y 49 Sika y 42 Kone y 59 Aegon y 120 Michelin y 45 Telenor y 39 Arcelormittal y 51 Roche y 140 Erste Group y 63 ASML Holding Sandvik Nestlé UPM-Kymmene y 47 Statoil y 65 Merck Kgaa I SEB TeliaSonera y 84 Hannover Re Unicredit Atlas Copco Allianz Credit Suisse y 89 Sonova Securitas* 59.3 Note ; Same position y Improved Worsened I Companies that are new this year in the Europe 500 segment The maximum score is 100 points. The 497 companies were selected from the FT Europe 500 index Each site was evaluated twice by different reserchers between the beginning of July and August 29 th, Companies in the top 10 were ranked three times. 12

15 Close the gap: order the report The Webranking Report is an online tool that identifies the gap between your key stakeholder demands and your digital corporate communication. It provides you with tools to reach your goals, meet stakeholder demands, benchmark against peers and competitors, or reach your anticipated ranking position. The Webranking Report Your company s score and ranking. Your strengths and weaknesses, overall and by section. Benchmark analysis with 3 selected peers. Detailed description of all 100 criteria. 300 best practice examples to be inspired from while planning for your improvements. Interactive tool that lets you test how improvements would affect your results. Access to the data from the background research surveys. The Webranking Plus Report also includes A qualitative analysis with detailed recommendations on how to improve your digital corporate communication. A face to face presentation of your results where we also share current trends and suggest possible ways forward for continuous improvement. We also review design, message and findability. We are Comprend Digital Corporate Communications At Comprend we believe in creating stronger, more engaging Digital Corporate Communications solutions for our clients. We combine communications knowledge with digital expertise. Our international clients rely on us for their IR, media, CSR, employer branding, internal communications and social media. Our work has global reach and successfully supports worldwide as well as local market-specific initiatives. We are a team of 60+ professionals with offices in Stockholm, London and Lisbon. We have partners in Milan (Lundquist), as well as group partners in the H&H Group: Hallvarsson & Halvarsson, Involve, Jung and Springtime. For further information check the website comprend.com To order your report or to get more information and insights please contact: Helena Wennergren Head of Research helena.wennergren@comprend.com Staffan Lindgren Managing Partner staffan.lindgren@comprend.com Phil Marchant Managing Director UK phil.marchant@comprend.com For more information regarding Webranking in Italy, Switzerland and Austria please contact: Caroline Becker caroline.becker@lundquist.it For more information regarding Webranking in Spain, Portugal and France please contact: Miguel Cruz de Oliveira miguel.cruz.de.oliveira@comprend.com 13