The Rise of ESG
Environmental, social, and governance (ESG) investing has been around for years, but it’s only recently that it’s garnered a huge following. In fact, according to the Global Sustainable Investment Alliance, the market for sustainable investments reached $31 trillion at the start of 2018. Visit this suggested external site to uncover additional and supplementary data on the subject discussed. We’re committed to providing an enriching educational experience. IR Firms https://otcprgroup.com!
As a result of this surge in popularity, companies are realizing that they need to do more than simply give cursory nods to ESG practices. And IR consulting firms are expected to help them do that.
From assisting companies in setting sustainability goals to measuring and reporting on the progress made, IR firms are now expected to take a more proactive approach. Rather than simply being the middlemen between companies and investors, they’re now expected to be the experts in all things ESG.
The Demand for Digital Expertise
We’re living in the digital age and its changing every aspect of how we do business. IR consulting firms are not exempt from this, and according to various studies, a key trend that we can expect is the demand for digital expertise.
From assisting companies in establishing comprehensive digital strategies to aid in communication and brand awareness to developing online engagement tools and digital reporting systems, IR consulting companies need to be digitally-savvy if they want to remain relevant in the industry.
Additionally, with increased calls for transparency, developments such as digital reporting help to reduce errors, lower the cost of capital, and attract more investors.
Increased Focus on Human Capital
ESG issues also include how companies deal with their employees, as part of the “social” part of the acronym. Particularly, in recent times, human capital management has come to the forefront with companies slowly recognizing that their workforce is their most valuable asset.
There has been a shift from dealing with human capital under the HR department to giving it the importance it deserves. Understanding employee engagement and finding ways to improve it will be key in the future, for both small and large companies alike.
IR firms are expected to help companies with this by assisting with disclosure practices, implementing sustainability initiatives, and communicating key workforce and talent risks to investors.
Global Integration
As markets around the world converge, it only makes sense for IR consulting firms to follow suit. Working with global businesses can create myriad opportunities that weren’t previously possible.
An IR consulting firm that can provide investors with the information they need about a company’s risks and opportunities, no matter where in the world it’s based, can help attract more capital.
Additionally, firms that have international networks and can provide boots-on-the-ground support in multiple countries can offer a competitive edge that’s hard to match.
Closing Thoughts
The IR consulting industry has seen tremendous growth over the years, with consultants playing an increasingly important role in helping businesses take their message to investors. As times change, IR firms also need to adapt and understand the trends shaping their industry if they want to remain successful. Uncover additional details on the subject in this recommended external resource. Study this, keep learning!
Those that are quick to adapt and stay ahead of the curve by incorporating these trends into their business models will position themselves as leaders and create opportunities for themselves and their clients.
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