KNOW YOUR INVESTORS
Leaders Arena has virtually become an extension of our IR team supporting my role as ESG Manager helping me prioritise and respond effectively to various investor-led ESG-related initiatives, monitor ESG trends and investor feedback and help us excel in our ESG communication program.
ESG Manager (Investor Relations), Repsol
Do you know which of your current and potential investors integrate Environmental, Social and Governance (ESG) considerations when allocating capital?
Did you know that each investor integrates ESG differently and rates companies based on different criteria?
How does your ESG communication adapt to their diverse needs?
According to our research, investors who fully integrate ESG into their investment process are managing more than 10% of the shares in listed companies globally. This percentage is above 50% when we include investors that consider some aspects of a company’s ESG performance.
Sustainable and Responsible Investors (SRI), focus on long-term capital allocation and thus seek a deeper understanding of the companies and sectors in which they invest. ESG-related dialogue with these investors creates a virtuous circle in which investors influence companies positively, leading to more sustainable businesses, which in turn attracts a higher presence of these long-term investors.
SRI Investors assess a company’s ESG risks and opportunities in areas such as climate change, supply chain and the alignment of executive remuneration to business sustainability goals.
Many companies are finding it challenging to keep up with the diverse and evolving approaches to ESG integration within their investor base. Constantly evolving drivers impacting investor behaviour include growing investor expectations on ESG performance, the increasing number of investor engagement initiatives, ESG data providers and indices, and investor policies.
In addition, companies are being targeted by several ESG-related investor campaigns. These can relate to human rights compliance, water risk management and the integration of other ESG aspects in the company’s strategy such as climate risk.
One example is the Climate Action 100+ (CA 100) campaign, launched in December 2017 during the One Planet Summit in Paris. CA 100, which targets the world’s largest greenhouse gas emitters, seeks to improve climate-related governance and disclosures and has gained traction at a record rate with support from a number of Responsible Investor organisations such as the Principles for Responsible Investment (UNPRI), Ceres and the Institutional Investor Group on Climate Change (IIGCC).
How we are helping our clients
Leaders Arena is helping clients know and address investor expectations on ESG using our unique ESG market intel.
Following decades of experience in senior roles in the Investor Relations and the asset management industry, Miguel Santisteve, Founder and Managing Director, and Heather Keough, Senior ESG Consultant, have together created the most advanced research tool to help companies prioritize ESG investor communication.
Introducing Leaders Arena’s proprietary tools: ESG Investor Scorecard™ and ESG Advanced Analytics™.
These unique Corporate Advisory Service tools are based on our award-winning methodology developed to track the different ESG integration and company engagement processes followed by Responsible Investors.
Based on more than 30 pillars, our ESG Investor Scorecard™ database can determine where in the process Responsible Investors are in achieving full ESG integration. At a more granular level, our ESG Investor Scorecard™ allows our consultants working with clients to accurately pinpoint the ESG areas investors focus on, taking into account sectors, geographies and the individual circumstances of each company.
Complementing our ESG Investor Scorecard™ research tool, Leaders Arena has developed an additional ESG content management system, ESG Advanced Analytics™, which allows companies to prioritise and adapt their ESG content based on their interactions with Responsible Investors.
Leaders Arena Advisory Services helps companies identify the growing number of Responsible Investors in their shareholder base and their diverse set of expectations. Our tailored tactical support will help you prioritise requests and plan proactive engagement with Responsible Investors.
Our unique research provides actionable insights that help ESG Communications Specialists navigate this complex space with great confidence.