The U.S. Securities and Exchange Commission (SEC) published its intent to overhaul ESG reporting standards in March this year.
The proposed rule would require IPOs and publicly traded companies to disclose how their operations impact the climate. Should the SEC enact this rule, failure to share climate-related risks could result in steep penalties by Q 4 2022, just as with any errors in SEC filings.
Although there’s always a chance this rule won’t go through, it signifies a seismic shift in the capital markets landscape. Climate issues are huge decision drivers for investors, and they want more information about climate risks before buying stock in any business.
With these sentiments in mind, now is the perfect time to update your ESG IR website to reaffirm your value as a sustainable brand. A better designed website makes it easier to share key sustainability metrics as regulatory frameworks standardize reporting.
Why Does Your IR ESG Website Need a Refresh?
Your investor relations website is the single most used digital source according to investors. They trust it above other traditional news sources (such as the Wall Street Journal and Bloomberg) when making investing decisions.
During the pandemic, these decisions relate directly back to ESG disclosures. In 2021, ESG mutual fund and ETF assets climbed to $400 billion in the U.S. That’s a 33% growth from the year before. On a global scale, Reuters estimates ESG funds now account for more than one-third of all assets in the biggest markets.
With this kind of investment opportunity, it’s critical you address your ESG criteria on your IR website in a transparent and clear way. A dedicated ESG website makes your brand more visible to eco-minded investors and drives your value as a sustainable fund.
What Should a Dedicated ESG Website Look Like?
Reporting comes first
With all signs pointing to the current voluntary ESG frameworks consolidating under one, unified standard set by the SEC, it’s crucial you meet compliance at every step of the way. Make sure you publish all relevant ESG data and make climate-related disclosures within registration documents and periodic filings.
If you aren’t sure what data is necessary, an ESG consultant can help. These professionals can leverage best practices developed across countless existing sustainable websites, ensuring compliance at all times.
Next, you’ll want to marry quantitative data with engaging narratives
The best IR websites marry performance markers with unique brand narratives. An ESG consultant can help you weave a story about your history, and how it links to your progress in environmental, social, and governance initiatives. This storytelling amplifies your value proposition in a singular branded destination online.
You can’t forget about design or security
At the end of the day, user experience can trump metrics if you have a glitchy site. Poor design, clunky runtime errors, and obvious security holes will drive away investors. It doesn’t matter if you boast impressive climate progress when browsers won’t stay on your site long enough to find your data.
When shopping around for an IR website developer, make sure they can offer these features:
- 99% uptime
- SOC-2 Type 2 Certification
- AWS and Cloudflare Infrastructure
- SSL Secure Websites
The Bottom Line
If you aren’t already publishing your environmental, social, and governance initiatives, you will have to soon. Make sure you have an investor relations website that’s ready for these regulatory changes. Your choice of ESG website software can elevate your sustainability communications.
Article Submitted By Community Writer
