It matters because: Even if financing activists do not meaningfully hit your company’s bottom line, they are driving public opinion that impacts politics, policy developments, regulatory approvals, and community opposition.
The critical mistake companies are making: Treating financial activist efforts as irrelevant noise, or, when targeted directly, responding in one-off reactionary exercises.
Seize the day. Successful companies will
Assess their exposure on these fronts – not just direct exposure (such as having your pipeline targeted by a Hollywood celebrity) but also secondary potential, such as regulatory changes in a neighboring state coming soon to yours.
Monitor activities targeting the international majors, and increasingly the large independents, assessing where similar fronts may open up for your company.
Consider the components of a comprehensive, proactive response. If your company were to be targeted by a decarbonization shareholder resolution in a year, what would your team do now to be ahead of the expected response?
There are many levers affecting a company’s comprehensive social risk that you need to keep an eye on. I will take each as a separate installment over the next 7 weeks, covering what we at Adamantine are watching and why. This series will help you assess your risk and consider the unique elements of your company’s comprehensive, proactive response.
You’re experts as well – let me know what I’m missing, and what you want to know more about.