Adaptability, clarity and transparency described as core practices to overcome macroeconomic challenges
Supply chain disruptions, global inflation, sluggish IPO and M&A activity, corporate sustainability efforts and a growing focus on artificial intelligence (AI) are all factors at the UK IR Association annual meeting. pointed out as a destructive factor.
Attendees at a conference in London this month said public companies need to be clear about where they stand in the face of this turmoil: how they are similar and how they are different. I heard there is Another approach was to “adapt the story” by drawing parallels with the buyer.
Companies need to understand which parts of the story are more appropriate to emphasize at specific times to reflect changing stakeholder expectations. One panelist told attendees, “I think it’s more important than ever to focus on basics, clarity and key metrics.” ‘I think so too [companies] need to find the right investor for [their] Story. ‘
Attendees heard that in today’s economic environment, investors are focused on the macro picture and it is difficult to get specific attention to individual companies. Additionally, the sustainability agenda has pushed people to think about raising the time horizon and supporting long-term winners.
ESG and AI challenges
ESG has become a top priority for investors, companies and IROs alike, due to increased scrutiny and the pressure companies face from regulators.
ESG has been described as a “change in buy-side focus”. It explains the complex process of ESG disclosure, how companies report key performance indicators, how the regulatory environment is evolving, and how rating agencies assess companies’ ESG performance. , attendees heard that “there is a lot of indirect communication when it comes to ESG and the evaluation process.” It’s even harder for investors. ”
Elsewhere, ESG has been defined as “must-have” for companies and a key focus in the decision-making process for investors.
With AI taking the world by storm and becoming a major disruptor to the IR industry, participants said, “I think we need to find ways to make the most of AI.” After all, human decisions and interactions cannot be replaced. ”
From an economist’s perspective, AI has had, and may continue to have, an impact on productivity and the workforce. It was argued that AI could replace many tasks performed by humans and improve productivity by complementing rather than taking away human work. It also creates more job opportunities in the long run.
However, attendees heard that the full effects of AI will be apparent in 20 years. “Usually, it takes him 20 years for an innovative tool to become commercially available and used on a large scale,” said the speaker. “So we have another 20 years.”
