According to an article by Citywire, IR teams are facing increasingly extensive ESG investment requirements. However, there are no generally applicable ESG requirements. For this reason, 57% of major investors surveyed in a study by Union Investment do not apply ESG criteria. And the IR and sustainability teams are also feeling the effects of this. This lack of universal requirements means that IR & sustainability teams are faced with a flood of different questionnaires, criteria and requirements. Especially smaller teams can hardly cope with this flood.
In the study by Union Investment, 201 institutional investors were surveyed. 71% of the non-invested investors are of the opinion that regulation would contribute decisively to an increased debate on the issue. Clearly, such universal criteria are not only a relief for investment teams, but also for corporate IR & sustainability teams.
What options do IR & sustainability teams have to meet this flood of demands from investors & ESG analysts? Increasing the number of teams may be one option. Another possibility is certainly to cluster the stakeholders in terms of their information needs but also in terms of their benefit for the company in order to make the best use of the limited time resources of the IR & sustainability teams.
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