How To Highlight Your ESG Strategy To Impress Investors
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The divide between doing what’s good and what’s profitable for your company has never been thinner. Nowadays, investors expect to see significant ESG disclosures before making investments.
It’s a sentiment supported by the chair of the Securities and Exchange Commission (SEC) Gary Gensler. When Gensler spoke at the London City Week, he made it clear new ESG regulations will likely come down the pike as soon as fall 2021.
Between investors and the SEC demanding greater ESG transparency, it’s the perfect time to remodel your site to include disclosures on climate change and human capital.
As the importance of ESG grows, more investors will ask you this question: what does ESG stand for? You can have your answer at the ready with an ESG IR website.
Why is ESG Impact Reporting Important for Your IR Strategy?
Standing for Environment, Social, and Governance, ESG is a set of metrics that reflects what you’re doing to combat climate change, uphold human rights, and improve corporate accountability. It represents your social or moral cachet on the market as it’s related to your commitment to sustainability and making a positive impact on society.
Many investors believe your stance on these issues has an impact on your performance on the market. According to one study, nearly half of all investors (49%) believe ESG strategies will improve their returns or reduce risk.
How Can You Share Your ESG Story?
When investors want to know something about your organization, they’ll look you up online. A recent digital investor survey found that investors consider your site as the most trusted source for information.
With this in mind, it’s important you share your ESG development on your IR website alongside product intelligence and trade analytics. The best IR services make it easy to integrate impact reporting onto your existing site, so it’s only a matter of adding your environmental and social achievements into your company’s narrative.
This might look like a landing page for your ESG disclosures, as well as relevant blog posts and dedicated pages for each letter of the acronym: environmental, social, and governance.
Optimizing your IR site to include your ESG strategy comes with the following benefits:
- Providing financially relevant insights that investors expect before they make decisions
- Highlighting your value to socially conscious and eco-minded investors
- Boosting investor confidence in your brand and value proposition
- Leveraging IR best practices to highlight your ESG initiatives
- Standing apart from the competition by using ESG to highlight your unique narrative
- Driving innovation from the top-down
Bottom Line: ESG is the Way Forward
Investors want to see the steps you’re taking to make a difference. The SEC will soon make it mandatory to disclose your charitable initiatives. And your direct competitors are already reporting their ESG data. You’ll have to do the same to stay relevant in the market today.
If you can’t easily highlight your ESG strategy on your current platform, it may be time to find a new IR company to help you elevate this new chapter of your story.