The value of an IR website is clear: it’s an irreplaceable part of any IR strategy, and table stakes when building relationships with investors, both retail and institutional. But there’s more potential in an IR website than just a page with the minimum disclosure requirements. Just as investors would visit a bricks-and-mortar business to evaluate performance, they will visit an IR website. That interaction may be a first or repeat visit; either way, it leaves a lasting impression that may help or hinder your efforts.
Today, market leaders are using the IR website not only for basic requirements but also making it a centralized source with a consistent message for any corporate audience. Content on recruitment, retention, supply chain, sustainability and purpose – when presented in a user-friendly format – supports statements made in earnings and investor days. It’s a full-circle approach with the IR website at the core. So how can IR teams enhance the effectiveness of their website?
To find out, Investis Digital analyzed and ranked more than 1,000 IR and corporate websites using the Connect.IQ methodology – 300 criteria that cover corporate narrative, digital engagement, experience, presence and reach. These criteria include regulatory requirements, digital best practices and user experience standards, from the basics of compliance to creative content.
The results of that analysis are published in the annual Connect.IQ Global 100 and ESG 100 Special Reports, along with best-in-class examples of IR websites and a list of corporations leading the way. Here’s the content that sets those leaders apart.
Business model & corporate strategy We know from our own research that many investors want to see how well companies explain the basics of what they do intertwined with the corporate strategy. While it’s a cornerstone of the investor narrative, many companies – 77 percent of the Global 100 – fail to quantify their strategic ambition and fail make ESG initiatives part of it (despite the 82 percent of investors that think otherwise).
Climate change & roadmap to net-zero Investors are increasingly interested in climate change and the risks and opportunities it creates for business. Reducing Scope 1 and Scope 2 emissions ranks as investors’ highest ESG priority, with Scope 3 emissions trailing close behind, and 73 percent of the ESG 100 have addressed that. Many global corporations have also made major announcements about their commitment to become net-zero, but only 51 percent of the ESG 100 provide a path to that goal with a roadmap, including their initiatives and those of their value chain (Scope 3).
ESG reporting frameworks, benchmarks and ratings Across the Global 100, the UN Sustainable Development Goals are the most popular framework, with SASB coming a close second. While companies are increasingly disclosing reporting frameworks, that disclosure is still not easy to find: 54 percent of the ESG 100 provide benchmarks and ratings on their IR website, and the majority of those align with three or more frameworks.
Connecting ESG strategy & corporate purpose Investors want more than just ESG performance data. They want to understand your sustainability strategy and how it aligns with the material risks and opportunities your business faces in both the short and the long term. More than three quarters (78 percent) of the Global 100 share their ESG strategy, yet only 40 percent are able to quantify it. What's more, once quantified, only a few are able to demonstrate the connection between their corporate purpose and ESG strategy. If not, your stakeholders may question whether you’re purpose-led or simply ‘purpose washing’.
Web-accessible content IR websites are easy targets for web-accessibility lawsuits, with more than 2,800 lawsuits filed in federal court in 2021. Ensuring that these websites and digital content (like PDFs) are accessible is key to providing fair access to financial disclosures, investor decks and other critical information.
IR as part of a larger corporate website Popular in UK and European markets, instances of corporate websites are on the rise in the US and Canada. As threats and uncertainty loom, companies seek to regain control of the corporate narrative and streamline communications, weaving IR content into a more thorough corporate website.
Wrapping it up: Things to consider Your IR website plays a vital role in communicating with investors – but is yours delivering the content they need and the experience they expect on the device they’re using? Are you making the most of your video content? Are you telling your ESG story?
To assess your own potential, start with a website audit and benchmark against your peers. Ask your website provider to help or request a complimentary Connect.IQ Report from Investis Digital.