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Introducing The EQ Net Zero Initiatives Report EQ

Introducing The EQ Net Zero Initiatives Report

Wednesday, 6 September 2023

By Anne-Marie Clarke – ACG, Director and Head of Corporate Governance at EQ Advisory, UK Shareholder Services at EQ.

The EQ Net Zero Initiatives report provides unique data about your corporate shareholders’ position on carbon ‘net zero’ or ‘climate change’ initiatives, giving essential insights for sustainability-focused organisations.

Anne Marie Clarke Anne-Marie Clarke Director and Head of Corporate Governance

We’re excited to launch our new EQ Net Zero Initiatives Report. In this article I explain why and how it can be of use to you and your organisation.

The current relevance of net zero initiatives

The importance of climate change is growing. Not least within the world of corporate investment.  Goals to reach carbon net zero by 2050 are high up on all business agendas. When working towards carbon net zero targets and taking action to improve corporate environmental behaviours in general, it’s important to consider the needs of stakeholders, one of those being the corporate shareholder, whether they are already invested in your company, or ones you wish to target for investment.

Corporate investors are interested in the ethical standing of organisations and, more specifically, they are keen to understand any positive actions that any organisation, in whom they invest, are taking. They want to engage on this topic and it’s important that companies are well prepared in knowing the net zero initiatives that the corporate investors are associated with. For some companies, understanding this could give you a competitive advantage, particularly if you want to raise additional capital for example. Perhaps you may have heard of one of these initiatives, Climate Action 100+

In owning a part of your business, they want to know that your pathway to net zero is aligned with theirs. And you will want you to know which, if any, net zero initiatives your corporate investors are committed to.  

In our experience at EQ Advisory, we’re seeing a steady increase in interest around climate-related matters. It’s an interest that traverses sectors and size of enterprise. In addressing a concern that impacts us all, there’s a feeling of collective strength and positivity. We’re all trying to help this global situation in some way, and there are many benefits to making change.

Most senior executives now understand that the positive environmental behaviours of an organisation that takes net zero targets seriously, will also see a positive impact on profits. With any challenge comes an opportunity.

And organisations are becoming more discerning. They are keen to align themselves with the net zero initiatives that matter most. Ultimately, this can be a deal breaker or maker.

So why is this EQ Net Zero report useful?

The EQ Net Zero Initiatives report is bespoke to your own business and it provides you with a snapshot of your investors’ interest and alliance to specific net zero initiatives. In turn, this report gives you a view of your investors’ needs for knowledge and engagement in this area. With this, you can develop a more engaging communications strategy.

For example, if you observe that key shareholders share a common commitment to certain net zero initiatives, you can demonstrate your understanding and allegiance through a compelling communications campaign.

If you see there is a lack of affinity between the initiatives you support and those of a key investor, this knowledge could act as a catalyst for change. It could allow your organisation to assess its commitment (or lack of) to specific net zero initiatives.

This may be followed by positive change in your corporate environmental policies and behaviours. It may even guide you to commit to other or additional net zero initiatives; ones that may hold more relevance to your core audience.

In essence, insights from the EQ Net Zero Initiatives report have the power to influence key strategic decision-making.

Is it time to get strategic in your net zero activities?

As the number of organisations involved in net zero initiatives increases and diversifies, no organisation wants to be left behind. With the EQ Net Zero Initiatives report you can keep on track with your investors, keep on track with the changes in key net zero initiatives, whilst you continue on your own path. We hope to see you along the way.