We believe companies at every stage can create value through ESG.
Our mission is to help each of our clients identify and address material social, governance and environmental issues to sustain their long-term success while benefiting society and the planet.
At Stern IR, we think of ESG as a set of characteristics and behaviors relating to environmental, social and governance (ESG), which help determine whether companies are structured for long term, sustainable success. ESG is a disciplined approach to understanding and managing risks and opportunities to maximize value for a company, while contributing social good.
ESG is not altruism—it is a systematic way of doing good by doing good business. ESG done right is motivated by, and in harmony with, business objectives. Identifying and managing risk is foundational to good governance, and ESG is a tool and a framing for risk management that today’s investors and financial markets recognize.
Biotech and healthcare companies face unique challenges, and to maximize the return on investment from ESG, they require an industry-specific approach and recommendations. Stern IR draws on deep industry experience to tailor ESG programs specifically for healthcare and biotech companies.
We believe a focused and value-driven ESG program must be built on material issues—those likely to significantly impact a company’s success. By focusing on material issues companies maximize the value of ESG efforts and have a basis for prioritizing high-value efforts.
Stern IR takes a research-based approach to ESG, ensuring the programs, tools, assessments and analyses we deliver are robust and credible. We harness leading ESG frameworks and leverage financial industry connections and primary data sources to inform program development.
We understand that companies at different stages of development are exposed to different types of risk, have different motivations for practicing ESG and different needs. We right-size ESG for companies based on their size, market stage and other lifecycle considerations.
At every stage in a company’s journey, ESG should be integrated with its business plan and IR strategy to unlock investment opportunities and maximize ROI. Integrating ESG with IR allows companies to control their sustainability narrative, signaling maturity and stability to the market.
ESG is evolving rapidly, as are industry expectations. Through industry research, peer benchmarking, interviews with buyside and sell-side actors, quantitative analysis of proxy voting guidelines, and review of upcoming regulations and legislation related to sustainability, Stern IR provides its clients with detailed, company-specific and industry ESG intelligence.
A materiality assessment incorporates internal and external perspectives on the set of environmental, social and governance related risks and opportunities facing a company to identify and prioritize issues with the potential to significantly impact the company’s long-term success. This set of material issues forms the backbone of a robust ESG program.
Stern IR conducts a robust gap analysis for companies to understand where current practice is sustainable and aligned with global reporting expectations and industry standards, and areas for growth. Stern IR provides actionable recommendations on near- and longer-term key performance indicators companies can track, work towards and report against to strengthen ESG performance.
Stern IR helps companies identify a set of principles and a vision for ESG in alignment with their core values, mission, and business model, in partnership with corporate leadership. This includes creating an ESG statement, which serves the dual purposes of informing the company’s approach to ESG internally and communicating the company’s ESG strategy externally.
Stern IR works with company leadership to develop a strategic ESG roadmap describing the company’s near-term path and key milestones to achieve in reaching its sustainability goals. A roadmap provides a high-level blueprint to follow helping the company become more sustainable over a given time horizon.
Companies benefit from sharing their ESG achievements, goals and vision externally so that raters, investors, customers and other key stakeholders recognize the company’s sustainability achievements. Stern IR creates industry leading ESG reports and communications packages to convey companies’ sustainability narratives to the market.
The quantity and complexity of ESG questionnaires, disclosures and obligations increase as companies grow. Companies with mature ESG programs often find it more efficient to rely on an ESG provider to manage queries and stay current on ESG topics. Stern IR provides monthly advising retainers at various levels to meet the individual needs of our ESG clients.
Stern IR provides curated ESG education and training sessions for companies, executive leadership teams and boards. We design sessions appropriate for each company based on their level of familiarity with ESG, motivation and purpose for training, desired level of active engagement and areas of focus.
