Investors are taking a growing interest in the environmental, social and governance (ESG) performance of the companies they invest in.
The scrutiny doesn’t only come from the growing market of responsible investors; mainstream investors are also looking more closely at ESG, as they begin to look beyond short-term investment horizons to the creation of longer term shareholder value.
Issues like modern slavery, financial climate risk, energy transition, responsible tax practices and impact investment were simply not part of investors' vocabulary just a few years ago. Today, these issues are commonly discussed – and reflect the way in which companies respond to the ESG expectations of their investors, which has growing implications for the cost of capital.
Analysts expect this trend to accelerate as the socially-conscious generations who grew up with global challenges, such as climate change and growing inequality, begin to wield greater investment power. So, now more than ever, it's critical for companies to engage with investors on ESG and shape their ESG messages to meet investors' expectations.
KPMG has a network of ESG and investor relations specialists who can help your company enhance its ESG communications with investors and improve your performance in key ESG indices and rankings.
How we can help
KPMG can provide bespoke ESG investor relations services to suit the needs of individual clients. Our support typically covers the following areas:
- Analyze the ESG expectations of your investors;
- Assess how your company meets your investors' ESG expectations;
- Understand how your investors perceive your ESG performance and strategy;
- Improve the quality of your ESG investor communications;
- Prioritize ESG indices and rankings and improve your performance;
- Evaluate your organization against your competitors.