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There are key topics in the finance world that shape the market, conversations, and investment decisions. And that topic right...4 min read
Market trends
Pamela Styles
|
March 19, 2019
4 min read
ESG/Sustainability is now a factor in both company competition and investor decision-making, as seen across IT companies by evidence of their press releases, annual reports, SEC filings, and more.
Here are key findings from my research using AlphaSense:
Press releases and Annual reports are the most frequently used communications vehicles for IT companies to discuss ESG/sustainability, outside of their sustainability report.
Press releases are regularly used across the sector to announce newly published company sustainability reports, sustainability-related rankings, certifications, and awards, inclusion in the Dow Jones Sustainability Index (DJSI) e.g. MasterCard ($MA), Computer Sciences Corp ($CSC), Xerox ($XRX), new product launches, commercial partnerships, and often to reference the National Association for Environmental Management (NAEM) rating report.
Environmental sustainability and energy disclosure in annual reports across the entire IT sector included: companies’ general sustainability discussion, and references related to policy and programs, products and services, supplier and supply chain, energy efficiency and renewable energy, ISO 14001 Environmental Management System Certification, capital access through “green bonds” and specific performance references. Two companies provide robust examples of the disclosure breadth across the sector and its services sub-sectors, respectively: SAP ($SAP SE) and Infosys ($INFY)
“ESG is still a relatively new strategy with hundreds of new funds launching around the world in the past few years…Since most ESG funds are also set up for long-term positions, firms that bet on a few big names built momentum and rose in the ranking.”
“Many of the large-cap focused indexes in the sectors had big bets on names in the technology and finance space, where fund managers said ESG disclosure is better and that they can tap into broad economic trends…”
As highlighted in several of my most recent AlphaSense blog posts, it is becoming noticeable that some utility and lodging & leisure sector leaders have been quietly bridging their company’s sustainability program successes into competitive IR communications strategy. From the results of my latest search, this appears to also hold true in the IT sector.
Pamela Styles is principal of Next Level Investor Relations LLC, an Investor Relations consultancy with dual IR and ESG/Sustainability specialties.
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