Through positive engagement, IROs can avoid seeing unsuccessful inquiries escalate into resolutions.
Forty-nine percent of shareholder resolutions in 2016 addressed an environmental or social issue and the path to these resolutions often began with an initial inquiry that ended unsuccessfully. The process typically starts during the fall, when investors send requests to companies for more information on a specific sustainability topic as the start of a shareholder engagement. When they find a company lacks progress, attention, or desired practices the investor will engage further and may even file a resolution. However, through positive engagement, proposals can be withdrawn and sometimes avoided altogether.
This fall, you may have been one of the companies to receive an investor request on your firm’s sustainability activities. This first inquiry is an opportunity to have a conversation and avoid escalation. It can be a chance to identify, understand and meet interest within the investment community for more information on a specific topic. Rather than playing defense, how can you turn this situation into a positive platform for your company and avoid having this inquiry escalate into a resolution at your AGM?
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