Take control of SRI/ESG investor communications

Companies’ communication to SRI investors is typically ad hoc and reactive when it should be pro-active and structured.  Disclosure should proceed on an orderly basis through the following steps:

• Publishing a sustainability report;
• Answering supplementary questions from investors and ratings agencies;
• Holding in-depth meetings with key investors;
• Gathering feedback and feeding this into next year’s programme

For example, a timetable for ABC Inc could include the following elements:

• 14 April 20XX – Publication of Sustainability Report
• 14 Apr – 30 May 20XX – Questionnaire answering period
• 15 June – 16 June 20XX – SRI roadshow dates

In determining this timetable, companies will clearly be driven by their own corporate reporting timetable.  However, they would also be advised to show sensitivity to:

• When other companies in the sector report – investors always welcome the opportunity to compare peers within sectors
• When all other companies report – to avoid the investor overload that would occur if all companies choose the same timetable
• Governance season – companies should seek to avoid the two month period before AGMs when analysts with combined SRI and Governance responsibilities have to focus on voting