Much of our work naturally considers longer-term outlooks for a company. Governance and sustainability practices, implemented in a methodical manner, may help a company develop fundamental practices essential to managing risks and opportunities that may have a longer-term horizon. When faced with an item of immediate attention and focus, like a shareholder proposal or a negative vote on a director, a company may find it difficult to maintain its long-term outlook on the issue.

Companies are challenged to develop strategies that not only address the risks of today but also minimize subsequent risks or consequences over time. The more we can help a company identify, understand and work to address a relevant issue today, the more we may be able to help the company minimize its exposure risk over the long-term. The market has become more focused on certain issues and because proponents have become more nuanced with the resolutions they are submitting, we are a valuable resource in helping to filter through the noise and maintain an understanding of what the long-term implications are.

Strong governance practices are critical for a company to successfully manage business and shareholder risks. The same can be said for sustainability; board and management’s investment in a company’s sustainability practices is fundamental to successful management of these risks and opportunities.

With the shareholder community furthering their focus on environmental and social issues, it is even more important for companies to develop and deliver robust disclosures that articulate a company’s approach to and management of relevant topics. While topics of focus have remained relatively consistent for the last couple of years, nuances within each continue to evolve and bubble-up.

Helping clients understand the evolution of these issues is very important. Companies need to continue to work with their shareholders to engage on these topics, discuss the issue in depth and, where necessary, educate their shareholders on a company’s perspective, approach and scope of impact relevant to the broader market trends. As more stakeholders become focused on sustainability-related topics, it’s more critical than ever for clients to own their context and narrative, whether through public disclosures or during strategic engagements.

Technology will certainly help us streamline research and processes, especially given the heightened focus and desire for data. Technology provides us access to more information in a quicker manner but having a team of individuals that can be candid with clients and provide strategic advice to our clients remains a distinguishing factor that our teams offer. These engagements with clients are critical in translating data into informative guidance and strategy.