As BNY Mellon discovered in a recent survey, investor pressure on issuers echoes these societal changes. Consequently, issuers and investors are increasingly focused on the disclosure and engagement practices related to environmental, social, and governance (ESG) topics.Our research finds that ESG considerations are rapidly becoming a core element of Investor Relations, enhancing IR teams’ practices for engaging with investors. As a result, IR teams that are just beginning to make ESG a standard part of their process can use our findings in two ways.

First, we identify common disconnects to avoid. Second, we provide actionable insights on creating productive, informative ESG engagement (i.e., an approach for establishing and maintaining these focused relationships).

On the demand side, investors want increased ways to understand companies’ sustainability practices. They look for the disclosure of reliable data alongside engagement on key areas of focus, in order to integrate ESG considerations into their decisions. This confluence of investor demand and issuer communications in our research shines a light on additional potential disconnects. We also uncover valuable insights on what to disclose and when to disclose it (i.e., the specific data and information used to communicate ESG risks, activities and impacts).

How Issuers and Investors Can Find Common Ground on ESG