Closing the

Sustainability-Investor

Relations Gap

Infographic

Context

1. The Problem

There is a lack of proactive, comprehensive engagement with investors on material sustainability issues

WHICH IS CAUSED BY...

problem-arrow1
Insufficient internal collaboration on investor communication on material sustainability issues

WHICH IS DUE TO...

problem-arrow2
Gaps between Investor Relations & Sustainability Teams...
problem-arrow3

2. Solutions

A selection of best practices that can help to close the gap
- see report for the full list

solutions-resources

Build on existing tools and channels

solutions-relationships

Foster
IR/Sustainability alliances

solutions-language

Identify intersections between sustainability issues and the business model

solutions-resources

Prioritize a few surveys or decide not to respond

solutions-timeframe

Discuss the value
of cultivating long term investors

solutions-language

Ask investors
what language and metrics they use

3. The Outcome

Benefits of improved internal engagement:

Investor Relations teams:
  • Increased opportunities to attract new investors, including long term investors and investors seeking more comprehensive risk and opportunity analysis
  • Deeper knowledge of the current business risks and opportunities
  • Better understanding of the wider social and environmental context in which the business operates
Sustainability teams:
  • Greater knowledge of investor needs and perspectives to help make reporting more relevant to investors and to clearly communicate the financial value of the company’s sustainability efforts
  • Increased ability to create stronger linkages between financial and sustainability issues to drive sustainability integration across the company more broadly
The Company:
  • Enhanced ability to demonstrate or explain how the company will be sustainable over the long term
  • Reduced effort and time needed to respond to investor surveys and ad-hoc enquiries relating to sustainability issues
  • More consistent external messaging on company strategy and performance

Benefits of improved external engagement of investors:

The Company:
  • Improved investor understanding of how the company generates value through its actions on material sustainability issues
  • Greater trust and credibility with investors
  • Reduced risk of investors and others using inaccurate information to make decisions about the company
  • Enhanced ability to attract investors looking for value over the long term
The Investor:
  • Reduce effort required to find information for sustainability analysis
  • Deeper understanding of the financial connentions of sustainability issues, which enables stronger investment decision-making
Society:
  • Shift in investment to companies with more sustainable business models
report

Taken from the report:

Closing the
Sustainability-Investor Relations Gap

December 2016

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