Obtain the data you need to make the most informed decisions by accessing our extensive portfolio of information, analytics, and expertise. Sign in to the product or service center of your choice.
IHS Markit Perspectives - The Importance of Social Initiatives within ESG - Part 11
27 October 2020
IHS Markit's Perception Analytics team engages in in-depth
discussions with investors and analysts daily. Given recent market
volatility and significant economic uncertainty, IHS Markit will be
speaking to investors and analysts on a regular basis over the next
few weeks to assess how the current situation with COVID-19 is
impacting their evaluations of and engagement with corporate
issuers. In our eleventh installment we gathered feedback on how
social impact initiatives within ESG influence a company's
investment case.
Highlights include:
Several investors and analysts assert that a company's
social initiative efforts have become more material to
their investment case. In particular, they highlight the
importance of diversity across the corporate workforce.
"Social initiatives and efforts relating to diversity
and inclusion are pretty important. If a company
is blatantly not taking efforts on issues relating to this or even
creating negative waves, then I am sure this would have an impact
on the share price at some point. "
Furthermore, many respondents note that it is critical for
companies to have consistent communication that highlights
their commitment to fair social practices.
"Social impact initiatives do have an impact on how we view
an investment because companies have to walk the walk. A lot of
people are signing up to pledges, but it needs to be visible that a
company's efforts are making an impact."
A few participants remain skeptical of public issuers'
progress and impact as it relates to true social justice
reform.
"It seems to me that they are talking about social issues
because it is in the news rather than because it is something that
the people at the firm have been waking up and thinking about
immediately for the last 10 years."
IHS Markit's Perception team will continue to gather real-time
market feedback as the situation unfolds, so please look out for
the next part of this series.
IHS Markit provides industry-leading data, software and technology platforms and managed services to tackle some of the most difficult challenges in financial markets. We help our customers better understand complicated markets, reduce risk, operate more efficiently and comply with financial regulation.
