Breakwater Capital Markets

The Big Ten Questions for Public Companies on Nature Positive Initiatives for Investor Engagement The growing recognition of biodiversity’s critical role in sustaining ecosystems and mitigating climate change is one of the next frontiers for investor engagement. Here are ten key questions that management teams and IRO’s should consider to ensure their nature positive initiatives are robust, transparent, and effective: 1. What are our specific nature positive goals? •Clearly define what being “nature positive” means for your organization, including measurable targets relative to a baseline year. 2. How are we integrating biodiversity considerations into our overall business strategy? •Assess how biodiversity impacts your business operations and supply chains, and incorporate these insights into strategic planning. 3. What metrics are we using to measure our impact on biodiversity? •Identify standardized metrics that accurately reflect your company’s biodiversity impact and track progress toward nature positive objectives. 4. How do we plan to offset biodiversity loss resulting from our operations? •Develop strategies to mitigate potential biodiversity loss, including conservation efforts and habitat restoration projects. 5. What partnerships are we forming to enhance our nature positive initiatives? •Collaborate with NGOs, government agencies, and other stakeholders to strengthen efforts and share knowledge in biodiversity conservation. 6. How are we ensuring transparency in our reporting? •Commit to transparent disclosure of your biodiversity risks, initiatives, and progress to stakeholders, utilizing frameworks like the Taskforce on Nature-related Financial Disclosures. 7. What governance structures are in place to oversee our biodiversity commitments? •Establish clear accountability within the organization, ensuring that leadership is engaged in biodiversity-related decision-making. 8. How are we educating and engaging our employees on nature positive practices? •Foster a culture of sustainability by training and involving employees in biodiversity initiatives and best practices. 9. What steps are we taking to avoid greenwashing? •Ensure that your claims about nature positive efforts are backed by credible actions and data, minimizing the risk of being accused of greenwashing. 10. How will we adapt our strategies as the understanding of biodiversity evolves? •Stay informed about emerging trends, regulations, and scientific advancements related to biodiversity, and be prepared to adapt your strategies.

Breakwater Capital Markets partner, Mark Hayes shares how to unlock your company's full valuation potential through our new solution, the new Investor Confidence and Clarity Framework. #BWcapitalmarkets #Valuation #RiskManagement #ElevatedIRO

Breakwater Capital Markets partner, Mark Hayes, shares his perspective on how climate-sensitive industries should talk about their climate risk during investor days. The approach not only enhances transparency and builds investor trust but also positions companies to thrive in a transitioning global economy. 🌍 #Sustainability #ClimateRisk #ElevatedIRO #bwcapitalmarkets

Do Investors Want Companies to Prioritize Debt Paydown? It’s Not That Simple. Investor sentiment toward corporate debt levels is more nuanced than a blanket desire for debt reduction. The key expectations are: 1. Strategic Debt Use: Employ debt thoughtfully to finance value-enhancing projects. 2. Financial Prudence: Manage debt levels to maintain financial stability and flexibility. 3. Optimized Capital Allocation: Prioritize uses of capital that maximize shareholder value. Here are the key insights on what they want: 1. Balance Sheet Optimization: •Strategic Leverage: Investors recognize that appropriate leverage can enhance returns on equity and support growth initiatives. •Cost of Capital Considerations: With interest rates coming down, investors want companies to assess whether their debt levels need to be reduced. 2. Investment in Growth Opportunities: •Prudent Borrowing: If companies have access to high-return projects, investors may support additional borrowing. •Selective Capital Expenditures: Investors prefer that companies invest in projects with clear pathways to profitability rather than indiscriminately cutting debt at the expense of growth. 3. Risk Management: •Debt Maturity Profiles: Investors are paying attention to the timing of debt maturities. Companies should manage their debt to take advantage of favorable market conditions. •Interest Rate Exposure: There is a focus on how companies are managing exposure to variable interest rates. 4. Sector-Specific Dynamics: •Industry Norms: In sectors with stable cash flows, such as utilities, higher debt levels may be acceptable. Conversely, in more volatile industries, investors might prefer lower leverage. •Regulatory Environment: Certain industries face regulatory requirements that impact optimal debt levels, which investors take into account. 5. Shareholder Returns vs. Debt Reduction: •Capital Allocation Priorities: Investors are weighing the benefits of debt reduction against other uses of capital, such as dividends, share buybacks, and reinvestment in the business. •Return on Invested Capital: The emphasis is on maximizing return on invested capital (ROIC). If debt reduction does not significantly enhance ROIC, investors will prefer alternative uses of funds. 6. Credit Ratings and Access to Capital: •Maintaining Creditworthiness: Investors are attentive to credit ratings, as downgrades can increase borrowing costs and limit access to capital markets. •Financial Flexibility: A strong balance sheet provides the flexibility to navigate economic downturns and seize opportunities, which investors value. 7. Macro-economic Factors: •Inflation and Monetary Policy: With central banks adjusting monetary policies, the impact on borrowing costs and economic growth is a key consideration. •Global Economic Uncertainty: Geopolitical tensions and supply chain disruptions add layers of risk that investors expect companies to manage, affecting leverage decisions.

Two weeks ago, Breakwater Capital Markets' partner, Mark Hayes, had the opportunity to participate in an IR Magazine panel discussion on data management and cybersecurity considerations and strategies for IROs. For those who missed it, check out this article: https://lnkd.in/eWhyUZqB

In case you missed it, here is the replay of the IR Magazine webinar, IR data: How to build trust and protect your reputation by managing data effectively, featuring Breakwater Capital Markets' partner, Mark Hayes. Thank you for the opportunity, IR Magazine and Laurie Havelock! https://lnkd.in/eds9Hed6 #bwcapitalmarkets

Thank you, ResMed & Amy Wakeham, for the opportunity for Mark Hayes to be in conversation with Michael Fliss, Katrin Pucknat, and Carlos Nunez.

Thank you ResMed for the opportunity to moderate a panel featuring Katrin Pucknat, Michael Fliss and Carlos Nunez at the 2024 Investor Day at the NYSE. #sleephealth #resmed

Congratulations ResMed on your 35th anniversary and 25 years on the NYSE!

Congratulations on your 2024 Investor Day, Amy Wakeham and ResMed!