In person, virtual or hybrid?
In a post-pandemic world, there’s no getting away from the fact that the growing appetite for, and availability of, digital options, has opened the door to a host of opportunities for online engagement with investors. At the same time, as the world begins to tentatively move forward, there are certainly investors that will embrace the opportunity for face-to-face interaction. There are undoubtedly arguments for both formats, with most companies seeming to favor either virtual events, or a hybrid mix of the two.
As an example, Schneider Electric hosted a fully virtual ESG investor day focused on investors and analysts. With more than 14 presenters, the agenda of the day included two specific presentations by executive management on sustainability strategy, followed by two panel discussions featuring operational, business and functional leaders. The event had more than 500 attendees live and on-demand, with participants having the opportunity to raise questions throughout the event via a chat function. These were then addressed in the Q&A session with all speakers.
Shell’s latest event was a combination of in-person and online, with 50 in-person and 70 online attendees. Anna Dumanska, IR officer for ESG at the oil giant, explains the outline of the day: ‘We held a plenary session hosted by our CEO, CFO and strategy, sustainability & corporate relations director. This segment of the event was both in person and virtual. There were also two parallel fireside chats on different topics. Two sell-side analysts hosted the separate chats with our CEO and CFO. These would then rotate, with this segment taking part only face to face. We closed our event with networking and drinks.’
Medtronic’s recent event was virtual, and was attended or replayed by more than 400 analysts and investors, of which more than 250 tuned in live, with several of its largest shareholders also in attendance. The 2.5-hour event featured a wide range of the firm’s leaders, including its CEO and CFO. The event included prepared remarks from four executives, one moderated panel and three separate audience Q&A sessions. A variety of topics were covered, including environmental sustainability, people and communities and governance and accountability.
Who should take the lead? Investors are used to the C-suite being rolled out to present strategy and results and engage with investor audiences. But the continuing growth and importance of ESG means many companies have invested in ESG-specific roles to drive their progress.
So does an ESG investor day offer the opportunity to change the status quo and swap out the C-suite for a more ‘boots on the ground’ option, or should the C-suite maintain the lead?
‘The answer is probably both,’ advises Rory Sullivan, CEO at Chronos Sustainability. ‘This reflects the reality that audiences are a mix of financial analysts – who will be interested in overall governance and strategy – and ESG analysts, who will often want a deeper dive into specific issues.
‘As issues such as climate change are now clearly recognized as strategic value drivers, this need for both a governance/strategy perspective and a detailed, technical knowledge is even more apparent.’
Rory Sullivan, Chronos Sustainability
