The Sustainability Team
The Sustainability Team should know whether any new ESG policy they are considering would be aligned to the policies' of their shareholders.
Who are the shareholders?
What are the shareholders' ESG policies?
What yardsticks would they use to determine their view of "best practice"?
Would non-alignment with the company's policies act as a barrier to investment or lead to activism?
(Please note the impact of ESG policies on Green Bond issuance)
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Implications to the IR Department
The IR Department also needs to understand the consequences in terms of impacts to the shareholder base.
Who could leave?
Which shareholders might begin to build coalitions to affect change?
Who might put out an RFA (Request For Activism) to an activist?
Who does the IR Department need to engage with to consolidate management support?