An issue-by-issue debrief
Of all the stakeholder issues identified in this report, carbon-neutrality goals have seen the greatest increase in company focus and investor interest, with more than three quarters (78 percent) of IR professionals witnessing a strong increase in focus and 72 percent seeing a swell in investor interest over the past five years.
Carbon-neutrality is clearly a bigger issue for larger firms than smaller companies in every metric, with more than nine in 10 larger companies increasing their focus and eight in 10 IROs seeing increased investor interest. Regionally, carbon-neutrality is slightly less of an issue in North America than in Europe or Asia.
Of the stakeholder issues identified in this report, customer relations is the one most commonly discussed between IROs and investors. While there is no real difference in the likelihood of discussions according to company size, European IROs are more likely to discuss customer relations with investors than IROs from North America or Asia.
Larger companies are more likely to have reported on customer relations than smaller companies, and Asian companies are more than twice as likely as North American companies to have reported on this issue.
Investors in North American companies appear less interested in customer relations than those in other regions. North American companies have also seen less of an increase in company focus and a lower increase in investor interest than firms in other regions over the past five years. Larger companies have increased their focus on this issue more than smaller firms.
Employee relations is one of the most reported-on issues identified in this report and is an area of high company focus. But it is an issue perceived to be of less interest to investors. Employee relations is a more important issue at larger companies, in terms of both investor interest and company focus, than it is at smaller companies.
Fewer Asian IROs discuss employee relations with investors, yet more than twice as many Asian companies report on the issue as do North American companies. Despite the lack of discussion, Asian IROs perceive a higher investor interest in this subject than do their European counterparts, though it is in North America where the greatest increase in both investor interest and company focus has been witnessed over the last five years.
Government and regulatory engagement is seen as the stakeholder issue that is of most interest to investors. It is one of the most commonly discussed issues between IROs and investors, with 63 percent of IROs seeing increased investor interest over the past five years, and 23 percent seeing a strong increase.
Investor interest in government and regulatory engagement is broadly the same regardless of company size. Smaller companies have seen greater increase in company focus on the issue over the past five years, while larger companies have witnessed a greater increase in investor interest. It is generally a less important issue in North America than in Europe or Asia, in terms of both company focus and investor interest.
Public health measures is an area that has seen a great increase in both company focus and investor interest over the past five years.
Understandably, there has been a high level of discussion with investors about this issue in the last 12 months, as a result of the global pandemic. Even so, it still remains an issue of relatively low interest for investors.
Larger companies are more likely to have had discussions with investors and reported on public health in the past 12 months, while more IROs at smaller companies have seen an increase in company focus.
Asian IROs are the least likely to have discussions with investors on public health, while North American companies are the least likely to report on the issue. Investor interest is highest in and increasing most in Asia, with nine in 10 Asian IR professionals having seen an increase in company focus over the last five years.
PR & corporate reputation is the least reported of the issues identified here, although more than seven in 10 IROs have seen an increase in company focus in the past five years. While fewer than half of IROs have had recent discussions with investors on this issue and there has been less increase in investor interest than in other areas, PR & corporate reputation is still considered to be the joint second-most important issue for investors.
PR & corporate reputation is considered to be of pretty much equal importance among companies of all sizes, although larger companies are more likely to report on and have discussions with investors about the issue. Asian companies are less likely to have discussions with investors but more likely to report on the issue.
Resource management & waste is the issue most reported on by companies but perceived as of least interest to investors, although 62 percent of IROs say investor interest has increased in the past five years.
As with many other issues, resource management is of greater concern to larger companies, in terms of both company focus and investor interest.
There is considerably less interest in this issue in North America, though three quarters of IROs there say company focus has increased in the past five years. The levels and increases in company focus and investor interest for resource management & waste are highest in Asia.
Socio-economic development is one of the most reported-on stakeholder issues by companies but the least discussed with investors. It is one of the areas considered to be of lesser interest to investors, although more than half of IROs have seen an increase in investor interest over the past five years.
As is seen with many other stakeholder issues, there is a higher level of reporting and discussion with investors among larger companies than at smaller companies.
Levels of reporting are considerably lower in North America, as is perceived investor interest. Asia has the highest levels of investor interest in socio-economic development, with the greatest increase in investor interest and company focus.
Among the stakeholder issues identified, supply-chain relations are relatively low in terms of company focus but score higher when it comes to investor interest. For each metric, it is an issue of noticeably more concern for larger companies than for smaller firms.
While more North American IROs have had discussions with investors on supply-chain relations than have IROs in other regions, perceived investor interest is lowest in this region. North American companies have seen lower increase in investor interest over the past five years but the highest increase in company focus.
