With the drive toward greater ESG measurements within the investment world, most larger companies now have a sustainability team responsible for ESG communications, according to the ESG & Investor Engagement report published jointly by IR Magazine and online sister publication Corporate Secretary.
The report also finds that there is a broad mix of companies that report on ESG separately and those that produce integrated reports. Larger companies are more likely to report separately.
Having a separate sustainability report is the most common means of ESG reporting, the report notes. Overall, 38 percent of companies report in this way, compared with 34 percent that integrate their ESG reporting into their annual report. More than a fifth – 22 percent – of companies do not formally report on ESG issues.
The report further reveals that governance is the ESG issue most frequently discussed with investors. A majority of IROs have at least quarterly discussions with investors about governance, compared with 30 percent who have environmental discussions and 27 percent who have discussions about social impact at least as often.
European IROs are most likely to hold regular discussions on all ESG matters, although it is notable that more than a third of Asian IROs discuss governance with investors at least monthly.
Asia has a higher focus on environmental and social policy issues than the global norm and therefore a lower focus on governance in ESG reporting.
You can find out more about the ESG & Investor Engagement report, including a detailed survey of how investors approach ESG, by clicking here.
