With growing market expectations for companies to consider all stakeholders in their strategic decision making, the need for a robust corporate governance framework that effectively considers environmental and social issues, is key to long-term value creation.

As investors show a growing interest in how companies are responding to ESG topics such as climate related risks, management of human capital, or gender diversity, whilst at the same time increasing their scrutiny of traditional governance issues such as board effectiveness and pay; it is essential that companies address such topics by following a consistent and structured approach.

ESG & Sustainability disclosure review

Morrow Sodali assists companies with identifying gaps and opportunities for improvement in their ESG practices and disclosure, and in some cases drafting of disclosure. We do this by supporting the company in identifying the most salient ESG issues by gaining a strong understanding of the company’s priorities, conducting benchmark and landscape assessments on relevant peers and investors’ expectation, by reviewing relevant ESG ratings to understand investor sensibilities.

Morrow Sodali also advises on the most relevant sustainability reporting frameworks and supports the company in developing material to address these priority disclosure areas, considered in light of the company’s context and aspirations.

Investor profiling and Voting trends

Morrow Sodali can conduct an in-depth analysis of a company’s institutional shareholders to assess their support of ESG-related shareholder proposals and the integration of ESG factors into their investment decisions. As part of this analysis, we can provide clients with an assessment of the influence of proxy advisors and the role of ESG rating providers.

Morrow Sodali provides companies with voting projections on specific ESG-related voting items and advises clients on how to articulate and effectively engage their ESG story with identified key investors.

ESG Investor engagement

Morrow Sodali identifies key investors for engagement on ESG topics, disclosures, and trends. Strategic recommendations are then made as to the most effective approach to engaging specific institutions Morrow Sodali provides year-round guidance and support on ESG-related stakeholder engagement.

Board Training & Coaching

Morrow Sodali conducts company-specific education sessions for management and board members involved in external investor engagements. We stay abreast of key ESG-related topics such as emerging trends, reporting frameworks, rating agencies and institutional investors.

ESG Survey services

In some regions, Morrow Sodali assists companies with the completion of ESG questionnaires by collating publicly available data and coordinating with the client on the collation of non-publicly available information. Typically, this follows research to consider the surveys that should be most imminently considered (e.g. for an inclusion in an index).

ESG Monitoring

In some regions, Morrow Sodali provides clients with regular (even daily) updates with actionable insight. Based on an extensive scale collation of periodic investor ESG trends and perceptions, activists’ and NGOs’ initiatives, and other stakeholders’ actions, Morrow Sodali delivers reports tailored to a specific market, sector and/or theme, thereby helping companies monitor investors’ evolving expectations while building a richer understanding of key shareholder issues and concerns.