The investor relations team at a global industrial manufacturing company saw increased investor interest in the company’s environmental, social and governance (ESG) performance. As a result, they needed a better understanding of their investors’ needs for ESG information and how they could improve the company’s ESG investor communications.
KPMG in Finland evaluated the ESG approaches of multiple institutional investors, with a focus on the UK and US. The KPMG team analyzed these investors’ ESG strategies, commitments to international frameworks, public statements, reports and policies, and also conducted in-depth interviews with them. Based on this research, KPMG identified the ESG topics of most importance to these key investors and advised the client on how to align its ESG approach with its investors’ expectations.
For example, KPMG professionals found that the client’s transparency on its approach to climate change fell short of some investors’ expectations. KPMG made a number of recommendations including improving disclosure of the company’s climate resilience strategy. With KPMG’s support, the client gained a stronger understanding of the ESG expectations of its investors and how to reshape its communications with them.
Tomas Otterström, KPMG in Finland and KPMG in Sweden.