There can be no doubt that ESG issues are a growing focus for investors. Global sustainable investment grew by 25 percent between 2014 and 2016 to $22.89 tn, according to the most recent report from the Global Sustainable Investment Alliance.
That follows a 65 percent increase between 2012 and 2014. The proportion of SRI assets compared with all managed assets now stands at more than 25 percent, with the figure in Europe more than 50 percent, notes the report.
At the same time, businesses are recognizing the need to better integrate ESG thinking with their strategic objectives. That’s down to a number of factors. Most importantly, ESG issues are more and more central to business concerns, such as water scarcity and carbon risk. External pressures also play a role, with regulators around the world focused on enhancing governance standards and a greater emphasis on stakeholder, rather than just shareholder, value.
Amid this changing picture, what role is IR playing? IR teams are certainly aware that ESG-focused investment is growing. But many admit they rarely get questions on environmental, social or governance issues in investor meetings.
The latest report from IR Magazine and sponsored by Donnelley Financial Solutions is titled Global IR practice: ESG communications and available to download now, highlights what IR practice looks like today across reporting, targeting and other investor communications from an ESG perspective. It also reveals what investors are asking companies about and how that conversation is evolving.
The research report Global IR practice: ESG communications appeared in the fall 2017 issue of IR Magazine
