For several years now, environmental, social and governance (ESG) disclosures have been a key focus in global capital markets. On the home front, Australian regulators are likewise intensifying their focus on ESG. Mandatory reporting is expected to be close at hand as the current voluntary requirement may soon be a thing of the past.
Investors have also heightened their ESG considerations in making decisions on investment opportunities, including initial public offerings (IPOs). More and more stakeholders are steering clear of companies with deficient ESG practices. They would rather align with businesses integrating ESG into operations as it's an indicator of financial performance and stability in the future.
That's why ESG is fast becoming an essential part of companies’ stories. Proper reporting needs to be provided to meet the demand for accountability. Adequate disclosures would help articulate responsible value for stakeholders too.
As investors are keen to learn about your ESG principles, where’s the first thing they search for information? Your investor website.
Your investor website is integral in communicating your ESG initiatives and conveying your company’s stand on relevant issues. Stakeholders will develop opinions on your ESG efforts using the information on your site. Failure to deliver ESG strategies on your web pages may lead investors to think you are missing the mark on those significant aspects.
Consider these best practices as you relay your ESG credentials to investors through your website:
1. Present your ESG story
Know your industry’s ESG metrics to determine the criteria that are pertinent to your business. Tackle the distinctions of the ratings agency your investors rely on for ESG trends as well. Incorporating your ESG profile on your website will provide what investors would be searching for.
For instance, if you're in the mining sector, the environment would be a principal factor along with health and safety. Whereas in the biotech industry, topics like clinical trial safety for patients and conducting ethical marketing might be of greater relevance.
Have a dedicated ESG section on your site or create a page that links to internal pages and reports with more details. This will point out how you keep revenues in mind while rising above expectations. As your site offers ESG info, investors can clearly see how they are part of your plan.
Present your ESG story on your website.
2. Flex your ESG goals
Set clear ESG targets to follow through on your words with actions. This will give weight to your ESG work and support your strategy with facts. Don't forget to provide tangible data to demonstrate the progress you’ve made in reaching your goals.
If there is a certain ESG criteria that still needs work, don't shrink back from addressing that important issue. Recognise this with a statement to show you’re addressing this responsibility. Investors would appreciate a bit of openness in your ESG communication.
Flex your ESG goals on your website.
3. Make your ESG data engaging
Illustrate how your ESG-focused company is making an impact not only with your employees but also in your community and the environment. Add engaging pictures, videos, and stories on your website to portray your company’s efforts in ways that are relatable and unique.
ESG is an opportunity to attract investors and build greater trust with shareholders. Communicating your ESG principles will set you apart from your peers as stakeholders learn more on your website.
Make your ESG data engaging on your website.
On your way to an ESG-savvy website
There’s no doubt that ESG is a growing focus for investors and your website plays a vital role in communicating your endeavours on this matter. Leverage your site to present your ESG story, flex your ESG goals and make your ESG data engaging. These smart moves will give you a good start with your ESG communications.
Find out more about communicating ESG on your website here.
Ready your website for ESG communication
Make sure your investor website is fitted out for communicating your ESG performance to stakeholders. See how we’ve helped ASX-listed companies with their sites and investor communications here.
Connect with us today on +61 2 8705 5444 or firstname.lastname@example.org for more information.