Part of your job as an Investor Relations Officer is keeping a finger on the pulse of the markets. A forward-looking strategy helps you develop a strong IR program capable of facing opportunities and challenges with equal confidence.
So, what can you expect in the year ahead? Here are four trends worth watching.
1. ESG Continues to Grow
With Bloomberg expecting ESG assets to surpass $41 trillion by 2022 — and $50 trillion in 2025 — social and sustainable funds have a bright future ahead of them. There’s never been a better time to focus on your eco initiatives with a fully branded ESG website.
The IR consulting experts at Q4 believe your ESG story deserves its own destination, separate from a traditional investor relations website.
An ESG website gives you space to develop and communicate your eco value to a global audience. The experts at Q4 recommend standardizing the way you talk about ESG initiatives so that your investors can easily understand your climate and social impact at a glance.
2. ESG Scrutiny Will Strengthen
In March 2022, the SEC proposed new rules that would radically change the way companies disclose climate-related risks to prevent misleading claims or greenwashing. For full details, you can read The Enhancement and Standardization of Climate-Related Disclosures for Investors, summarized by the SEC’s very own Fact Sheet.
Your ESG initiatives will be under greater scrutiny than ever before, so it’s important you communicate your disclosures carefully. Talk to an ESG consultant for guidance on improving the transparency of your sustainable initiatives and reporting. These experts will help you navigate this new regulatory world so that your ESG IR website meets compliance at every step.
3. Fewer IPOs and SPACs
Despite the pandemic, the past two years were a boon for IPOs and SPACs. SPACs, in particular, had a banner in 2021, when 613 SPAC listings raised 145 billion USD — a 91% year-over-year growth.
Things are starting to cool off for the SPAC market as the SEC heralds new policies that would strip SPACs of advantages over traditional IPOs. These rules would increase disclosure regulations to protect investors.
Against this backdrop, your investor relations team needs to understand your new obligations if you’re planning to go public this year — as an IPO or SPAC. IR consulting firms can help you design an IPO or SPAC website that meets compliance while underscoring your value to potential investors.
4. Hybrid Investor Conferences
Chances are high your local government has lifted many of the restrictions that strangled your in-person program of capital markets events.
As the world rushes to reopen and return to normal, the corporate world has a more cautious approach. While many companies are back to hosting AGMs and conferences in person, many are holding onto digital engagements as a simple and cost-effective outreach method.
A hybrid model is the new-normal of investor conferences, combining in-person and virtual access in one event.
No doubt hybrid corporate access virtual events and conferences require a higher degree of competence to pull off successfully. Juggling in-person audiences and digital webcasts can be challenging without the right tools to run a successful virtual conference.
Purpose-built tech for hybrid capital markets events can help you navigate this next stage of the pandemic. Besides giving you the software to host and manage virtual engagements, this software comes with premium support for capital markets events.
Hybrid capital markets events, changing regulations, and unfettered growth for ESG companies—these are the major trends you’ll see in the future. IROs would do well to consider areas carefully when designing their strategy.
