Working in strategic communication, I’m often asked whether everything is under control. In this field, we grow used to operating in fast-paced, ever-changing, and even unpredictable environments—especially in a world shaped by constant technological advancements where almost everything happens in “real time.” This demands readiness to adapt to the unpredictable.
That question—“Is everything under control?”—was asked most often by one of the organization’s finance leads. The recent report “In Search of Investor Interest: Key Insights for Times of Uncertainty”, produced by LLYC’s financial communications team in collaboration with the CFO Circle of the International Organization of Human Capital Executives, helps frame how the areas of communication, investment, and finance often operate under very similar paradigms.
One of the report’s key findings is that most publicly traded companies are choosing to update their corporate narrative—or equity story—almost in real time. This is a direct response to the continuous volatility of the global economic environment and its local impacts. In just the past three years, we’ve experienced a pandemic, the economic repercussions of the war in Ukraine, rising prices, more expensive financing, and liquidity shortages.
These are all top-of-mind concerns for CFOs and investor relations teams in listed companies across both Iberia and Latin America, according to a survey conducted by LLYC among more than fifty professionals from both regions, including Panama.
63% of respondents said their companies plan to revise their corporate narrative this year—and that they’ll need to do so more frequently due to the ongoing instability of the economic landscape.
This disruptive context creates the challenge of capturing and holding investor attention. To meet it, financial teams must work closely with their communication and marketing counterparts. It’s no longer just about reporting indicators and financial results—it’s about delivering a strategic narrative that effectively communicates the organization’s vision and direction.
Timing is one key factor. In the face of market volatility and weaker investor interest, it’s crucial to identify the right moment to re-engage the investment community.
That’s why finance and communications teams are advised to work closely together to monitor internal progress in areas such as ESG (Environmental, Social, and Governance), so they can pinpoint milestones that add value to the equity story and support investor communications.
It’s highly likely that ESG will remain a top priority in the ongoing renewal of corporate narratives, given the growing importance of these criteria in evaluating organizational performance. A corporate narrative can no longer be just a summary of financial data—no matter how detailed—and should also go beyond simple market outlooks.
Based on survey results and expert interviews, the LLYC report concludes that investors are increasingly focused on environmental and social issues, alongside corporate governance.
In fact, the report emphasizes that this new approach “should not be limited to what is traditionally known as the equity story. It should also extend to the company’s broader set of materials and channels. Innovation is an emerging value. Several executives are calling for creativity and the development of new formats and content.”
In light of this, it is essential that financial and communications teams build a strong alliance to deliver the right narrative to investors and other stakeholders—one that integrates data, compliance, forecasts, and the organization's real impact on society.
Originally published in Capital Financiero.