New challenges and opportunities emerge as the investment landscape evolves
The IR landscape is evolving, presenting new challenges and opportunities. As AI becomes more prevalent, both IR teams and investors are adapting their practices for better evaluation and valuation of businesses. They are also identifying the growing need for external support due to expanded responsibilities such as increased ESG reporting.
The Citgate Dewe Rogerson (CDR) annual IR survey offers a detailed examination of how companies worldwide are adapting their IR strategies amidst a challenging macroeconomic environment and the critical need to boost investor engagement. Leveraging our deep expertise in investor relations, extensive global network, and thorough understanding of emerging trends like AI integration and ESG considerations, CDR is uniquely positioned to provide strategic guidance in the shape that IR’s future is taking.
Lessons for IROs from last year’s survey
Last year’s survey revealed that the remit of the IRO continues to broaden. Less than a third of respondents said they exclusively handled core IR functions, while almost half sought increased engagement with international investors and over a quarter intensified interactions with retail investors.
A third of IROs integrated AI-led processes into their IR activities, using AI tools for functions such as drafting external communications, market intelligence and sentiment analysis. Despite the increasing adoption of AI, 89 percent of IR professionals globally had yet to accommodate the rapidly growing use of AI in investment decision-making and alter their investor engagement strategies accordingly.
Given the volatile macroeconomic backdrop and some vocal anti-ESG rhetoric from certain quarters, some may have expected investor priorities to shift, but non-financial metrics are clearly embedded. Over 90 percent of respondents indicated that they either saw increased investor focus on non-financial metrics or no change in priorities, indicating that the focus on non-financial metrics alongside traditional financial metrics is here to stay. Companies globally remain committed to their ESG targets, with the majority of respondents indicating they are still on track to achieve their ESG or net-zero targets and a further quarter saying they are partially on track.
With insights into the primary concerns of company boards, shifts in targeting specific investor groups and the effectiveness of various investor communication events — from virtual roadshows and webinars to investor days and hybrid conferences — the survey uncovers the dynamics essential to maintaining robust investor relations in the modern world.
Results from the annual IR Survey offer a valuable resource for refining IR strategies. In the dynamic field of IR, staying ahead of trends and understanding emerging challenges is essential. These efforts support our clients in enhancing investor engagement, achieving ESG objectives and driving long-term value creation in a rapidly changing market.
The 16th CDR annual investor relations
In the latest edition of the annual IR survey, we delve into the transformative trends shaping the future of investor relations. We explore the integration of AI in IR practices, a development that promises to revolutionize how companies interact with investors by enhancing efficiency and personalization. This includes the use of interactive digital platforms, personalized content and real-time updates. With the rapid pace of technological advancements and shifting investor expectations, IR professionals must adapt to new tools and strategies to remain effective.
Additionally, we examine evolving investor engagement strategies, highlighting the innovative approaches that are redefining stakeholder communication. We also focus on the growing prominence of ESG aspects in IR communications, investigating the factors driving companies’ ESG priorities and how these communications are tailored based on investor geography.
Furthermore, we analyze the role of social media in financial communication, identifying the platforms that are gaining traction, the types of content that resonate with audiences and the impact on investor engagement.
Understanding these trends is crucial as we navigate the future of investor relations. By staying informed and adapting to these changes, companies can build stronger relationships with their investors, drive long-term value, and remain competitive in an ever-evolving landscape. Your individual insights are invaluable, so join us in shaping the future of IR here.
Linda Pui is head of investor relations and corporate communications, Greater China and Co-Head of Hong Kong at CDR
