October 21, 2021
Introduction
Companies and investors have a mutual responsibility to preserve and enhance long term corporate value. In doing so they must focus, not only on aspects relating to a company’s long term financial value, but also on factors impacting the health of society and the environment. In essence this is about ‘the governance of sustainability’ and the role of the board in overseeing the integration of human and natural capital management in alignment with a company’s purpose and long term strategy.
The session critically examined the mutual responsibilities of the company and investors in enhancing long term corporate values. The session was conducted in partnership with the International Corporate Governance Network (ICGN). The session focused on recent development into the ICGN’s Global Governance Principles. The challenges and the impact of COVID 19 in the investing and corporate environment were also discussed in the session.
Session Highlights
The Panellists opined that the investors are now more aware than of their role in climate change issues. The investors have gained cognisance of the fact that capital flows required to address the climate change issues are flowing through them. They are the potential influencers and significant stakeholders in the debate on global issues like climate change, low carbon footprint, and company compliance.
The Panellists critically examined the challenges for successful engagement between companies and investors. They pointed out that one of the biggest challenges is prioritisation of the funds, that is, determining the deployment of the most critical and scarce resources in the organisation. Another challenge pointed out by the Panellists was non-identification of stakeholder base by the company management. There is a need for transparent disclosure of the goals for engagement, sustainable and standardised reporting, and consistency in data for comparison of results for successful engagement between investors and companies.
The Panellists discussed the impacts of COVID-19 pandemic on investors and companies. It was pointed out that the pandemic has revolutionised the workplace and added another dimension to human management. The Panellists resonated that COVID-19 has aided the engagement between the investors and companies.
Opening
- Anthony Miller, Coordinator, UN Sustainable Stock Exchanges, UNCTAD
On the panel were:
- Ian Burger, Head of Corporate Governance & Stewardship, Newton Investment Management
- Osamu Hamada, Director, Corporate Governance Reform, Financial Services Agency
- Alessandra Stabilini, Partner, Advant Law Firm
Moderator
- Kerrie Waring, CEO, International Corporate Governance Network (ICGN)