Month: May 2024

Nasdaq

Investor Relations (IR) professionals are quickly becoming the dynamic multitaskers of today’s corporate world. They are viewed as an internal partner of choice across corporate functions and have expanded their remits year-over-year, including focus on technology advancements, sustainability, regulatory compliance, and macroeconomic disruptions. With a growing list of responsibilities, IR professionals have a reach that extends from internal initiatives to external activities. In recent years, IR professionals’ versatility has been particularly evident through a growing involvement in or leadership of sustainability and ESG efforts.

Now more than ever, IR professionals are managing, reporting, and communicating their organization’s ESG strategies and programs. Looking deeper into this topic, Nasdaq IR Intelligence uncovered how the role of IR has evolved over the years, as well as how leveraging people and AI-based technology can help IR professionals align their objectives with their organizations’ broader ESG and sustainability goals.

IR Professionals: Then vs. Now

Today, the IR profession has entered its third wave of execution – cross-functional leadership and tackling new verticals, like ESG and sustainability. This most recent phase can create a narrative for stakeholders that’s not solely focused on financial performance and investor engagement. With this shift in responsibilities, an exciting growth course becomes evident for individuals within the IR profession. They are given the opportunity to expand their skill set, gain access to new internal decision makers, and elevate their position within their organizations. The evolution of the role also means they can influence key strategic decisions within the organization and shape the corporate narrative to a greater extent than ever before.

“I see the IR career evolving as a glue across the organization,” says Katrina Rymill, SVP of Corporate Finance & Sustainability at Equinix. “IR professionals are held accountable for a lot more, and it’s no longer just for the earnings calls.”

Catherine Buan, VP of Investor Relations at Asana, also shared her thoughts during Nasdaq’s 2024 IR Forum. “In IR, you have a very unique vantage point. You’re not the CEO or CFO, but you have the altitude of one. You see things at a higher level, and you can be a great ally to the C-level from that standpoint. The cross-functional leadership skills you develop as an IR person are critical and have become even more profound as the years come.”

IR’s Focus on ESG, Sustainability, and Regulation

The increasing collaboration between IR and ESG teams is evident. According to findings from Nasdaq’s 5th Annual IR Issuer Pulse survey, ESG remains the most significant responsibility outside traditional IR activities, with 35% of IR professionals reporting a heavier focus on ESG in recent years. Four years prior, that amount was at 14%. Collaboration between IR and sustainability teams also lends to improved communications with stakeholders about an organization’s sustainability initiatives—and highlights the strategic nature of modern IR.

With the evolution of ESG and sustainability, IR professionals can play a crucial part in leading or participating in their company’s ESG working groups. Occupying a unique position within organizations, and core members of the finance team, IR’s role in the evolving regulatory landscape cannot be understated. Further insights from the 5th Annual IR Pulse, 20% of IR professionals indicate the greatest ESG-related challenge is navigating the increasing disclosure regulatory requirements.

As ESG and sustainability started to gain traction in stakeholder demands, engagements between IR professionals and investors had naturally shifted to include more ESG-focused issues and acted as a starting point for IR professionals to expand their responsibilities. For many IR teams, keeping up required a steady adoption of ESG and sustainability initiatives into their workloads. “It was an organic evolution,” says Susan Morrison, Chief Administrative Officer at Tandem Diabetes. Having dealt with a failed say on a pay vote six years ago, Morrison had the incentive to get feedback from shareholders and to understand why this was the case. Speaking to different investor stewardship teams from various funds on top of discussing compensation, the conversation naturally took a broad look at governance within the organization. “This really helped to clarify the picture. And as those conversations were happening, we were able to strengthen our shareholder relations, and came to the realization that sustainability was critical to have at the forefront of those governance discussions. We needed to make sure that we were establishing our own presence in the sustainability space,” Morrison explains.

Igniting an IR Career with New Responsibilities

The ever-expanding role of IR professionals brings the challenge of managing increased responsibilities with limited resources. As mentioned, IR professionals are now intertwining their roles with key strategic corporate functions, most notably ESG and sustainability. With such a significant paradigm shift, IR teams are no longer just communication bridges between their organization and the financial community – they are now strategic partners driving ESG initiatives that go beyond just sustainability reporting.

“Sustainability is so much more than reporting,” says Rymill. “There is a whole tie between strategy, communication, and reporting. The metrics drive the strategy, and the strategy drives the metrics.” With this concept in view, Rymill’s career took on a whole new direction and was led by the question of how an IR team can help map out long-term strategic sustainability value for the organization. “It changed my career”, revealed Katrina. “It gave me a chance to have visibility in a completely different way. It gave me people management experience, and I had people asking to join my team to work on this. It really changes the trajectory of what you’re capable of.”

Growing Efficiently with the Right Investments

It is important to note that attaining that career growth by taking on more can be nearly impossible without investing in the right areas. So, in leveraging valuable assets —people and technology—IR teams can optimize resources to drive success. First, investing in people is crucial. Resourcing existing team members where their expertise and skills will shine not only supports improved individual performance, but also enhances the IR team’s overall effectiveness. In addition to human capital, technology can play a pivotal role in scaling operations and driving efficiency. Adopting emerging technologies, such as AI, helps automate routine ESG tasks, freeing up IR professionals to take on more and focus on strategic areas.

However, it is important to note that one may not always work as efficiently without the other, as IR professionals can elevate their roles when they incorporate the use of AI and technology and use it as a strategic partner in their efforts. “Relying on technology is what allows us to accomplish so much. IR professionals have so much breadth to our roles, and to be efficient in it, you have to be able to rely on technology,” explains Morrison during the Nasdaq’s 2024 IR Forum. “Technology helps you keep pace in those, but it never replaces doing the work.”

Moreover, integrating AI into IR workflows can be transformative, especially in addressing ESG-related challenges. AI technologies, like Nasdaq Sustainable Lens™, provide a unique opportunity to help IR teams seeking to take on more ESG responsibilities leverage AI to boost productivity by automating repetitive tasks and tap into credible and trusted insights.

Building Upon a Strong Position on the Finance Team

As the corporate landscape evolves, IR teams are managing various responsibilities. Their expanded role can now include leadership in ESG and sustainability efforts, further solidifying their position as internal partners across various corporate functions. IR professionals looking for ways to grow their careers should take a hard look at sustainability and ESG. They are well positioned members of finance teams, adept at navigating regulatory topics and communicating complex topics to stakeholders. For those that want to leap, taking on this added responsibility in an efficient manner requires getting scale through two powerful assets – human creativity and technology, both working in tandem.

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To discover how IR professionals can leverage technology to expedite better decisions, boost productivity, and enhance credibility, visit: https://www.nasdaq.com/solutions/corporate-esg-solutions/esg-ai.

Julia Reilly, senior legal analyst, has turned her lifelong passion for horses into purpose with the Fair Hill Emergency Response Team (FHERT). Since 2019, Julia has spent countless hours working with the all-volunteer team, bringing a humane and dignified approach to large animal rescue in Northern Maryland, Northern Delaware, as well as Eastern and Lower Pennsylvania.

Through her volunteer work, Julia earned Exelon’s highest achievement for volunteerism and community involvement, the Powering Communities Employee Volunteer award, and FHERT a $5,000 grant. We spoke with Julia about the organization, how it serves its community, and of course — her horse, Finn.

Why are you passionate about Fair Hill Emergency Response Team (FHERT)?

It’s a blend of my passion for horses and the convenience of being nearby. Firstly, I own a horse, and with that comes the necessity of having a well-thought-out plan for when things inevitably go awry. I don’t own a truck or trailer, so I’ve always needed to have a plan in the event that I would need to transport my horse to an equine hospital. Since 2019, I have boarded my horse with Jo Ann Bashore who leads FHERT and just by being around the barn, I was exposed to the organization. For example, we planned to ride on New Year’s Day, but a call came in about a calf in distress. Without hesitation, we jumped into the ambulance and rushed to assist. Working with FHERT is not just about passion – it’s also about being in the right place at the right time.

In the horse community, we all pitch in to support one another. Whether we’re going for a ride or handling emergencies, we ensure everyone is taken care of, and that nobody gets left behind. It’s an extension of my commitment to caring for the community I’m part of.

What is the horse community like in your area?

Maryland has a very large horse population. At one point, Maryland had the highest number of horses per capita of any state in the country. We also have large events, like the Fair Hill International Five-Star Event, which is one of only two events at its level in the United States, and one of seven internationally.

What kind of services does FHERT provide?

We handle a wide range of situations. For instance, if a horse gets cast, meaning it’s lying down in a way it can’t get up, we have the tools like ropes and straps to assist in getting the horse back on its feet. Additionally, we respond to various other issues and emergencies, such as transporting horses that need medical attention or surgery. Our organization is equipped with diverse equipment and skills to address a variety of equine-related needs, as well as other large animals. We will also go to horse shows and serve as emergency personnel in case of any issues, and we host obstacle course clinics and de-sensitization classes to help people train their horses.

How does the organization engage with the local community?

We engage in extensive outreach efforts with members, the public, and first responders. We recently received a grant from Maryland to provide Large Animal Technical Rescue training for first responders, helping them understand how to handle animal emergencies. This training is crucial because many first responders and even veterinarians need more expertise in technical rescue for animals. We also conduct outreach for children and youth, including school visits and working with local 4H clubs.

Can you tell us a little about your horse?

I met my horse, Finn, when his previous owner had been told by doctors that she was no longer able to ride. Originally, I just started riding him to get him out of the barn, but I fell in love with him — it was very serendipitous. He is a total rock star and is absolutely perfect for me. He is a seven-year-old Bay Roan Quarter Horse, and I’m looking forward to a long time with him.

How has this organization impacted your life?

It has deepened my appreciation for the effort required to manage these situations. I’ve had horses for a long time, but I’ve been fortunate to avoid major issues. However, there have been instances where we needed urgent assistance, which wasn’t readily available, underscoring the importance of having a solid plan and access to resources, especially as I age. There’s a growing need in our community for this type of service, which is evident from the significant increase in our call volume. Initially, we barely received a handful of calls in a year, but now, we’re surpassing that in just a few months. The word is spreading among the community, EMTs, and police about our availability as a resource. Assisting someone in distress holds immense value for me, especially knowing that support would be reciprocated if I were ever in a similar situation.

What is one call that stands out to you?

We had a horse that was hit by two cars and lived. We were able to get him on the ambulance and to New Bolton, the premier equine veterinary hospital in the area. Not only did he live, but he’s actively enjoying a happy and fulfilling life.

As part of your Exelon Powering Communities Employee Volunteer Award, FHERT received a $5,000 grant. How is that being used?

We were able to purchase a dedicated truck for the ambulance. We’ve had a trailer for some time, but relying on individual member’s trucks wasn’t ideal for a variety of reasons. The truck is a reliable way for us to answer calls quickly and transport horses and other large animals when needed.

Exelon’s strong support for volunteerism is truly inspiring, and it’s incredible to be recognized with this award. I’m deeply grateful for the company’s commitment to empower employees to get out there and champion causes that we’re passionate about.

Southern Company

Solar energy accounted for more than half of new U.S. electricity generating capacity for the first time ever in 2023, according to a report from consulting firm Wood Mackenzie and the Solar Energy Industries Association (SEIA)..

Last year, the United States saw a record 32.4 gigawatts of new solar power generating capacity added to the grid, up 51% from 2022, according to the report. That 2023 total also represents a 37% increase from the previous record, set in 2021. Utility-scale installations accounted for 69% of total new solar capacity additions, followed by residential solar at 21%. Community solar accounted for around 3.5% of new solar capacity.

In the Southeast, Southern Company and its subsidiaries are leading the way in this solar expansion. As we work across the company to enable a net-zero transition, our renewables portfolio continues to grow. Across the Southern Company system of retail electric utilities, more than 2,800 MW of solar generating capacity has been added since 2015. The company plans to nearly triple solar capacity by the early 2030s and in total, expects to have approximately 20,000 MW of renewable capacity and storage by 2030.

“Carbon-free solar generation resources are an instrumental component of our energy mix as we build the energy network of the future,” said Clay Rikard, Southern Company vice president of System Planning. “We expect solar generation to continue its accelerated growth trajectory across our service territory as we transition our electric generating fleet in pursuit of our goal of net-zero greenhouse gas emissions by 2050. Our customers and communities depend on the clean, safe, reliable and affordable energy we serve every day – and we’re committed to keeping them at the center of everything we do.”

Georgia has ranked in the top 10 for annual solar capacity additions in the U.S. for each the past three years. Georgia Power recently advised regulators that adding some 10,000 MW of solar capacity to their generation fleet by 2035 can potentially stimulate economic benefits for that state.

In addition to Southern Company’s retail electric utilities, the company’s wholesale energy subsidiary, Southern Power, currently owns or operates more than 2,740 MW of solar generating capacity at 30 facilities nationwide*. Southern Power helps serve the energy needs of municipalities, electric cooperatives, investor-owned utilities and other energy customers across the nation.

While various policy and economic factors could impact the continued growth of solar in the U.S., the outlook is currently optimistic. “If we stay the course with policies in the IRA, solar capacity will quadruple over the next 10 years,” said SEIA CEO Abigail Ross Hopper.

* Some 250 MW of this amount is under contract to Georgia Power and is included in the 2,800 MW value cited above. Also, 26 of these facilities are co-owned by third parties, with Southern Power having majority ownership.