Canadian security regulations require corporations to disclose all materials related to their business and affairs that may impact an investor’s decision to become a shareholder. That regulation includes environmental and social considerations. What E&S disclosures include can differ substantially across industries and sectors. The one constant is that material disclosures must be continuous and timely, sharing new information as it emerges regarding the environmental and social impact of an organization’s work. Instead of bombarding shareholders with E&S and CSR materials, working with a private capital advisory can prioritize materials based on their relevance to performance and generating long-term value. An advisory firm can help guide corporate policy for the research and issuance of relevant materials when establishing disclosure strategies.
Many corporations discover a significant overlap between their corporate social responsibility and environmental and social materials, which is expected and standard. E&S materials change substantially depending on not only the sector in which you operate but your industry. There’s no master list of factors that every organization should consider, and the relevant factors to investors may change quarterly. Some typical factors include:
Identifying the factors that impact your corporation and interest shareholders is essential in optimizing your E&S disclosures and overcoming related challenges. An advisory firm brings a macro-vision of CSR and environmental and social factors. Experienced consultants help leadership focus on areas that will provide the most significant strategic benefit to your organization.
With the evolving uncertainty with the global impact of COVID-19, the importance of E&S is now intensified. Public and shareholder scrutiny is particularly fierce in the areas of human capital management and employee health and safety. Investors are placing greater significance on how corporations reacted to the initial health crisis and ongoing challenges through the pandemic.
E&S materials may now include corporate culture regarding organizational performance during the pandemic and how companies transformed due to the external social pressures of COVID-19. The pandemic is just one example of how staying adaptive with E&S disclosures is essential to meet regulations and provide investors with the information they want.
It’s undeniable that environmental and social factors play a more prominent role than ever before in corporate strategy. Many organizations now incorporate DEI, climate change, cybersecurity, and environmental impact into their business models. Investors are also more concerned with how issuers handle E&S factors.
An advisory firm can work with you to maximize the benefits of E&S factor management not only for your corporate strategy but in the disclosure you provide for shareholders. Consultants can implement E&S considerations throughout your organization, often giving companies a competitive edge within their market.
Kingsdale Advisors holds offices in Toronto and New York, providing unparalleled corporate guidance for organizations across North America. Our multidisciplinary team helps guide decision-making powered by shareholder votes, specializing in voting analytics, strategic and defensive advisory, governance advisory, and strategic communications. When dealing with fast-evolving corporate social responsibility materials and the boundary with environmental and social materials, we help corporate leadership meet regulations by partnering with them for every step of disclosure.
Kingsdale Advisors partners with North American corporate leadership to provide experience and expertise across various service areas, focusing on shareholders. Contact us in New York or Toronto to learn more about our private capital advisory.
