From Apple to Volkswagen: the companies SRI investors want to meet in 2016

Volkswagen, Unilever, Google, Apple, Exxon, Natura, BP, JPMorgan, Nestlé, Glencore: these are the top 10 companies that sustainability-focused and SRI investors and corporate governance analysts would like to meet in 2016, according to the recently launched 2015 survey of Independent Research in Responsible Investment.

The survey – which WeConvene Extel and www.sri-connect.com have been publishing since 2012 – polled more than 1,200 investors, analysts and company managers globally on best practices in sustainable investment research and communications by companies.

Alongside the ‘would like to meet’ list above, the survey finds that:
• 68 percent of asset managers see direct contact with companies on sustainability and corporate governance issues as important or very important to their investment research process
• 72 percent of companies have a formal plan for SRI communications but only 8 percent communicate the shape of this plan to investors and analysts
• Companies complete an average of eight SRI questionnaires a year and only meet an average of 10 analysts. Given that both companies and investors value direct communication more highly, we expect a significant rebalancing of the way companies prioritize their SRI and corporate governance communications in future.

Asset managers were also invited to identify the companies that are best at identifying the material sustainability and corporate governance issues facing their business and the companies that communicate best to them (see table, below). The fact that there is a difference between the two perhaps explains why more investor relations managers are taking control of SRI and corporate governance communications: 47 percent of companies say the IR team is in charge of these relationships, compared with 30 percent last year.

Companies also got the chance to have their say on investors and analysts. For the best understanding of the opportunities and challenges their company faces in sustainability and corporate governance, survey respondents give top ranking to Cedric Laverie of Amundi (asset manager category), Orith Azoulay of Natixis and Yannick Ouaknine of Société Générale (sell-side category), and Hardik Shah of Sustainalytics and Robbert Gerritsen of ISS (independent research provider category).

Summarizing the findings of the research, Steve Kelly of WeConvene Extel argues that ‘the strongest messages from this research are that sustainable investment has become professionalized, and company-analyst-investor access has become critical. IR teams are becoming more proactive as they see the advantage of strategic, long-term SRI investors on their shareholder register.

‘On the research side, there is much that needs improving in the business dynamic. But the depth, quality, variety and visibility to companies of SRI and corporate governance research has grown considerably, even over the four years we have been running the survey. This gives companies very useful insight into what investors and analysts regard as important in this area.’

Mike Tyrrell is editor of www.sri-connect.com