Why companies need to showcase their activity in the ESG space
Today’s equity markets have undergone a massive shift that has made the relationship between companies, their investors and their ecosystem of stakeholders more important than ever before. Among the factors driving this change is the increasing interest among investors and consumers in companies that prioritize ESG initiatives – and the resulting shift in how these audiences expect to communicate with both public and private companies.
In fact, a recent survey from ICR, a strategic communications consultancy, finds that more than 60 percent of professional investors believe a company’s ESG performance impacts investment decisions. The same study also reveals that beyond traditional media, more than half (54 percent) of professional investors and communications professionals feel social media has a material impact on investment decisions, ranking Twitter (64 percent) and LinkedIn (59 percent) as the most effective social media channels to communicate with investors.
When it comes to ESG efforts, including benchmarking and reporting, one thing is clear: business leaders can’t afford to stay silent and must meet investors on their preferred channels. ESG communications have emerged as a critical priority, especially as the US and Europe advance proposed regulations that may require sustainability disclosures for publicly traded companies. Both public and private companies, regardless of where they are in their ongoing ESG journey, must develop a strategy for clearly and transparently communicating their efforts to stakeholders.
This all starts with the IR website, which is the frontline for all investors to access critical financial information. IR teams must think about how they can use the IR website to tell their ESG story in a prominent and easy-to-access manner. The proliferation of corporate governance sections on IR websites has increased in recent years, giving greater visibility to companies’ proxy statements, board of directors and annual meeting schedules. The most progressive companies are going one step further by adding dedicated sections for ESG-related information – this includes the use of video to humanize the story and showcase the passion of the executive team.
In this Notified-sponsored best practice guide, you’ll find tools to help you deliver on ESG messaging, across all audiences, from assessing your ‘ESG life stage’ to incorporating talking points during earnings calls and monitoring and responding to conversations among stakeholders on social channels.
The key takeaway? Your ESG communications strategy is more important than ever before – and IR professionals must lead the way in making sure efforts are communicated consistently and transparently, meeting stakeholders on their preferred channels.