Issuers say ESG factors important to company success

As investor needs evolve, an increasing demand is placed on issuers for environmental, social and governance (ESG) related information.

A recent survey from the Canadian Investor Relations Institute (CIRI) found that 87% of issuers consider ESG factors important to the success of their companies.

Key drivers for ESG commitment include enhancing corporate reputation (81%), improving risk management (73%) and creating long-term shareholder value (68%), the survey found.

The majority of issuers have committed to having an ESG /sustainability policy (54%), a board or committee overseeing ESG (81%), or an executive responsible for ESG (75%).

The strong commitment from issuers has led to an increase in ESG disclosure as well as greater engagement with shareholders.

According to the survey, 76% of issuers currently disclose ESG data to the public, and almost half of those surveyed said they do so annually (47%). Additionally, 45% of respondents said they have ongoing dialogue with investors on ESG.

“We are seeing tremendous commitment to ESG from the top, with most issuers having board or committee oversight of ESG and a C-suite executive responsible for ESG,” said CIRI president and CEO Yvette Lokker in a statement.

This commitment is translating into disclosure and ongoing ESG-related discussions with investors, she said.

The survey was conducted by CIRI and sponsored by TMX Group. Over 60 investor relations professionals took part in the survey during the second and third quarters of 2019.

Maddie Johnson

Maddie is a freelance writer and editor who has been reporting for Advisor.ca since 2019.