Investor Relations O!cers Reifne Strategy in Challenging Times INVESTOR RELATIONS FUNCTIONS AND STRATEGY With global investoƒ sentiment affected by news from developed markets, investor relations (IR) teams have been refocusing their strategy. IR teams are emphasizing strategic engagement, 71.3% of respondents globally reported adoption of stewardship codes by investors, with a focus on existing shareholders as well as that the IR function is responsible for encouraging the IR teams to engage with new engagement. They are particularly involved communicating with investors on ESG/ investors on these topics. in communications regarding Environmental, Corporate Social Responsibility (CSR) issues. Social and Governance (ESG) and engagement This high proportion may be connected to Interestingly, 14.4% of the time of Corporate with their debt investors, and are also expanding the growth in recent years in ESG investing Governance Officer/CSR teams of respondents their relationships with ratings agencies. (global sustainable investing assets grew 34% globally was spent with the financial media, 1 more than double the 7.1% in 2017. This increase from 2016 to 2018, from $22.9 bn to $30.7bn ), Engagement with existing and prospective the push from the Sustainable Stock was driven mainly by respondents in Emerging institutional investors remain the top Exchanges Initiative and the increasing Asia (21.4%) and North America (17.1%). priorities for C-suite management and Investor Relations Officers (IROs) of respondents globally, with 44.8% of C-suite TIME SPENT BY CORPORATE GOVERNANCE and 38.0% of IRO time devoted to existing OFFICER/CSR TEAMS WITH FINANCIAL MEDIA The goal of expanding or institutional investors in 2019 and 24.5% enhancing engagement of C-suite and 25.5% of IRO time devoted to 2017 with existing shareholders prospective institutional investors. This mirrors 7.1 % went up from 50.2% in the top IR goal selected by respondents globally: to expand or enhance engagement 2019 2017 to 61.5% in 2019. with existing shareholders, a goal chosen by 14.4% 61.5% of respondents in 2019, versus 50.2% in 2017. 1 Global Sustainable Investment Alliance. 2018 Global Sustainable Investment Review. Page 8. Retrieved January 29, 2020 from http://www.gsi-alliance.org/wp-content/uploads/2019/06/GSIR_Review2018F.pdf. 6