Companies releasing ESG information must link it to the profitability of the company and the sustainability of the business model.
That was the message from Rosanna Burcheri, portfolio manager at Artemis Investment Management, who was speaking at the ESG Integration Forum – Europe, hosted by IR Magazine and online sister publication Corporate Secretary.
‘What is important for investors like me is to be able to quantify the action [companies are] taking or the ESG factors that are impacting their business model,’ she said, adding that ‘certain business models maybe are not going to be around in 20-30 years.’
Burcheri, who co-manages the Artemis Global Select Fund and Mid Wynd International Investment Trust, also offered advice to IROs about how best to deliver ESG information to the market.
She said she didn’t think companies needed to undertake specific ESG roadshows to inform investors about their sustainability information. ‘It can be integrated into the equity roadshow or the fixed income roadshow,’ she said. ‘Just make sure that both the equity investor and the fixed income investor are aware of all of these ESG factors that are impacting the business model.’
Companies should also make sure their ESG information is disclosed on the corporate website – because that’s the first place investors will go to look, said Burcheri.
Finally, she discussed the importance of keeping the board and investor-facing executives in the loop about a company’s sustainability programs. ‘Maybe a lot of things are done internally, but the communication doesn’t flow,’ she said.