Global Trends in Investor Relations: why we should invest in impact now?

Global Trends in Investor Relations March 2020According to BNY Mellon research, IR teams are currently emphasizing strategic engagement with a focus on: 

1.     Existing and potential shareholders

2.     New engagement, such as Environmental, Social and Governance criteria

3.     Engagement to the response of geopolitical risks

1. Engagement with existing investors is a top IR priority

Engagement with existing and prospective institutional investors, similar to 2017, remain the top priorities for both C-suite management and Investor Relations Officers (IROs), with 44.8% of C-suite and 38.0% of IRO time devoted to existing institutional investors in 2019. A second priority is prospective institutional investors, with 24.5% of C-suite and 25.5% of IRO reported time devoted. 

2. New Key IR Function - Communication on ESG

71.3% of respondents globally reported that the IR function is responsible for communicating with investors on Environmental, Social and Governance (ESG) / Corporate Social Responsibility (CSR) issues.

This high proportion may be connected to the growth in recent years in ESG investing (global sustainable investing assets grew 34% from 2016 to 2018, from $22.9 bn to $30.7bn1), the push from the Sustainable Stock Exchanges Initiative and the increasing adoption of stewardship codes by investors, encouraging the IR teams to engage with investors on these topics.

3. A key concern for IR teams in 2020: global economic turmoil

72.8% of respondents of BNY Mellon survey expressed increased concern about global economic turmoil that has an impact not only on the direct economic environment of their companies but also the overall market confidence. The number has grown by 17,1% compared to 2017. 

The state of the global trade environment has also risen significantly as a concern tying as the top issue at 72.8% in 2019, up from 41.4% in 2017. 

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