The path to sustainability is not always straightforward, but our team is committed to providing insights that make it more manageable.
In this new article, Victoria Tetzlaff, manager at Agendi, explores the most pressing ESG challenges investor relations officers face and how the course content of the ESG essentials in IR course supports navigating them. Agendi is supporting the IRO Society in hosting this course multiple times a year.
While ESG issues have been on the IR agenda for some years, regulations and expectations keep growing. Victoria Tetzlaff, Manager at Agendi, explains how the new ‘ESG essentials’ course can cut through the noise.
As environmental, social, and governance (ESG) issues become prominent in investor discussions, IROs play a key role in communicating their company’s sustainability strategies and progress. With rising demands for transparency and accountability, IROs face complex challenges in staying up to date in delivering this information: from new regulations to increased scrutiny on data and claims. The one-day ‘ESG essentials in IR’ course, held in partnership with Agendi and the IR Society, is designed to help IROs address these challenges head-on.
Here are some of the key ESG challenges IROs are facing today:
- Evolving Regulations
IROs must keep up with rapidly changing ESG regulations like ISSB adoptions and CSRD, ensuring compliance and staying prepared for future requirements. In the course, we provide clear guidance on current and upcoming regulations with a focus on the UK, supplemented by global standards, ensuring participants are well-prepared for the future. - Fragmented ESG Standards
With multiple, sometimes conflicting, voluntary reporting frameworks (GRI, SASB, CDP), IROs face the challenge of selecting and aligning with the most relevant ones. The workshop breaks down these frameworks and helps IROs understand which are most relevant for their industry and stakeholders. - Demonstrating Materiality
Identifying and communicating material ESG impacts, risks, and opportunities is crucial. IROs need to show how these factors affect long-term value. Through case studies and interactive sessions, we guide participants on how to determine material ESG matters that drive long-term value creation. - Strategic Planning
A significant challenge for IROs is integrating ESG priorities into strategic planning and resource allocation. This requires aligning sustainability initiatives with financial goals, identifying material ESG issues, and securing executive support to ensure resources are effectively allocated. In the ESG essentials course, we address this challenge by providing practical steps for embedding ESG into strategic planning. Participants will gain insights and real-world examples to help them align ESG objectives with overall business strategy and enhance resilience for the future. - Data Collection and Quality
Collecting consistent, high-quality ESG data from various sources is difficult. IROs need to ensure transparency and accuracy in reporting. We provide practical strategies for improving data collection processes, ensuring transparency, and avoiding common pitfalls in ESG reporting. - Balancing Short-Term and Long-Term Goals
IROs must manage the tension between delivering short-term financial results and pursuing long-term ESG objectives, addressing investor concerns on both fronts. - Audit and Assurance
As regulations demand greater transparency, companies must provide reliable, verified information about their sustainability practices, often requiring external auditors to assess ESG data. In the course, we cover these evolving requirements, offering practical guidance on preparing for audits and ensuring data accuracy. Participants will learn best practices for navigating the audit process. - Avoiding Greenwashing
IROs need to ensure that ESG claims are credible and backed by action to avoid reputational risks tied to greenwashing accusations. Our course covers best practices to avoid greenwashing, ensuring that participants are equipped to communicate their ESG story with honesty and transparency.
As published in IR Society’s Magazine “Informed”: – Autumn 2024 edition
