The coast is always changing
Covering ESG materiality during the last few years feels like how I imagine geologists feel when studying coastal erosion: change is fast and everywhere.
When we talk about the ESG information investors pay for, the conversation so often leads to a discussion of raters and rankers like MSCI, Sustainalytics and Refinitiv, and so often glosses over changes in sell-side research. In this issue’s cover feature, I talk to the individuals charged with leading the effort on ESG integration at Barclays, Citi, Bank of America and Raymond James, to hear how they influence the work of experienced analysts and how their research is differentiated from the aforementioned raters and rankers.
Elsewhere, one of the biggest emerging ESG themes in North America is investor focus on racial equity. In the immediate aftermath of the protests for racial equality across the US last summer, many public companies spoke out against racism. A lot of investors applauded this messaging as a positive first step, but are now asking for the receipts.
This proxy season, there are several proposals asking for racial equity reporting and evidence that the rhetoric is backed by conscious efforts to recognize and value the benefits of a diverse workforce. Ben Maiden outlines the notable proposals and looks at how company management teams have responded.
When last summer’s protests started, the price of Bitcoin was $8,841, Ethereum was $200 and Dogecoin was $0.002491. As of May 10, one Bitcoin is worth about $55,000, an Ethereum is worth $3,890 and Dogecoin is 45 cents. Cryptocurrency as an asset class is valued at more than $2 tn, and it’s time to ask how, not if, it will affect IR.
In this issue, we look at various scenarios that are already happening: competition for capital, public firms buying cryptocurrency, and the use of blockchain technology for proxy voting, dividend distribution and settlement periods.
Almost half (45 percent) of small-cap companies have seen an increase in their retail shareholdings during the last year and, as Garnet Roach writes, some IR teams are experimenting with new methods of communication. While no IR team is going to prioritize retail investors over institutional holders, some are finding that one-to-many communications tools – like chat bots, paid social media campaigns and Reddit AMAs – can have positive results. But this can be a double-edged sword, as Tim Human reports, with some public companies in Asia facing a battle to correct misinformation on social media that investors act on.
Our research this issue looks at the changing corporate access landscape – exploring how much investors and IR teams use buy-side and sell-side corporate access, and how much all parties work together.
Elsewhere, Tim Human looks at the debate around dual-class shares in the UK, Garnet Roach explores whether millennials have a different approach to IR, and I talk to Unity Health’s IRO about the firm’s decision to go public last year via a modified auction – a method that had been out of fashion for some time.
Thank you, as always, for reading. I hope you and your loved ones continue to stay safe, healthy and sane. If you can, get vaccinated and be sure to take some time off this summer to recharge your batteries. You deserve it!
Ben Ashwell Editor ben.ashwell@irmagazine.com +1 212 430 6869
Editor Ben Ashwell Managing editor & chief copy editor Kathleen Hennessy Senior reporter Garnet Roach Senior reporter Tim Human Contributors Lloyd Bevan, Alexandra Cain, Marina Calero, Jeff Cossette, Laurie Havelock, Ben Maiden Editorial advisory board Brian Christie, Janet Craig, Vlad dela Cruz, Gunhild Grieve, Catherine James, Ricardo Jiménez, Richard Jones, Jeannie Ong, Andrew Stephen Founding editor Janet Dignan Design and production executive James Noden Managing director, events Gargi Iyer Head of event operations Lauren Wilson Head of event content Steven Wade Conference producer Anna Phillips Events manager Priscilla Lim Events co-ordinator Chloë Rutter
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