"Change the Conversation: Redefining how Companies Engage Investors on Sustainability" from Ceres provides insights based on interviews with investors (US & Europe) and corporate sustainability professionals (US- HQd public companies) on investors' ESG disclosure wants and expectations, and recommends these associated strategies and action items for companies to improve their ESG engagement and secure a competitive advantage:
Strategy #1: Formalize sustainable business integration
- Demonstrate accountability for sustainability
- Develop the sustainability business case
- Cultivate collaboration between sustainability, investor relations and governance teams
Strategy #2: Identify what to disclose and where to disclose it
- Focus investor-directed disclosures on what is material, but don’t ignore emerging trends
- Disclose decision-useful information, both quantitatively and qualitatively
- Disclose sustainability information consistently where investors are already looking
Strategy #3: Implement a proactive investor engagement strategy
- Use language that investors understand and value
- Leverage the C-suite and board of directors as key messengers
- Diversify investor engagement strategies
In addition to discussing each of the nine recommended action steps and the related investor insights, the report includes instructive "Company in Action" examples that illustrate how specific companies have effected particular action items, and informative investor insights on various ESG engagement strategies including earnings calls, road shows, investor days, and investor-focused events.
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See Cooley's post, and additional information & resources on our ESG page. This post first appeared in the weekly Society Alert!
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