AI, ESG, and legislative changes: new challenges for Investor Relations professionals

ARIR (The Romanian Investor Relations Association), the promoter of the Investor Relations (IR) concept, organized the sixth edition of Forum by ARIR. The event, themed “New Horizons in Investor Relations: The European Challenge”, brought together over 30 relevant speakers from local and international capital markets, alongside approximately 100 participants from the Romanian capital market community.

The Forum’s agenda included highly interesting topics related to trends and legislative changes impacting Investor Relations, such as: accession to the OECD, European regulations and their transposition into capital market legislation (Law 24/2017), sustainability reporting, as well as changes in corporate governance, and gender balance in the leadership structures of listed companies.

The field of Investor Relations (IR) is evolving rapidly, and proactivity is becoming essential for success in this profession. Industry specialists shared in a dialogue with Daniela Maior, ARIR President and Partner at VERTIK, the importance of modernizing Investor Relations, with a greater emphasis on the proactivity of IR representatives.

Marius Dan, the representative of Fondul Proprietatea, emphasized that a company’s market valuation, the shareholder base, and the number of annual meetings can be used as key indicators of success in IR:

“I believe that a company’s valuation is one of the most important indicators of an IR professional’s efficiency. If we refer to more easily quantifiable aspects, the number of meetings an IR professional has each year is relevant. We try to have 400-500 meetings per year. Other measurable aspects include the number of teleconferences and roadshows, and the ability of the IR professional to gain access to the most important sectorial, regional, and global conferences.”

Marius Cara, former coordinator of IR activities within the European Commission and representative of the European Investment Bank (EIB) Group in Romania, highlighted future challenges: artificial intelligence (AI) and big data analysis, as well as integration with ESG (Environmental, Social, Governance).

“IR professionals need to learn to use artificial intelligence to manage complex data and analyze investor perceptions and market trends. They also need to understand how the company is evolving in line with market expectations regarding ESG and communicate this information effectively to investors.”

Aurel Bernat, Executive Director of Financial Institutions, Investor Relations, and Investment Subsidiaries at Banca Transilvania, emphasized the importance of a global perspective in the work of professionals in the field.

“From my point of view, Investor Relations means having a global perspective on the activity; you need to be in direct contact with the financial and business areas, understand what is happening in the industry and within the company, and enjoy traveling a lot and meeting people. Any investor, any analyst sees the reality up to that point; however, they all expect the IR professional to be able to tell the story and the future, highlighting the next extraordinary thing the company will do to grow even more.”

Adriana Marin, Investor Relations Manager at OMV Petrom, discussed the constant changes that have occurred in recent years in the Investor Relations field.

“Currently, we have started conducting competitive analyses, ensuring compliance with regulations, including those related to the company’s sustainability and communication on this topic. All these changes in the profession’s status stem from numerous legislative changes. Individual investors have become increasingly sophisticated and demand more and more information about the company, technological advancements, artificial intelligence, and how these impact investors. All these factors push us to become more proactive in communicating with the market and investors.”

Jean Dumitrescu, Investor Relations Director at AQUILA, explained the need for continuous training in the IR field.

“I believe in continuous learning, a practice I have also encountered at AQUILA. I believe in concrete actions and effects, and in smart work. I have the opportunity to use my business experience and natural inclination to communicate with people; it is something that is practiced and continuously improved. The importance of the IR role is to understand the business very well, and my previous position as CFO allowed me to develop this aspect.”

The video recording can be watched here

The Strategic Parners of Forum by ARIR 2024 are: Bucharest Stock Exchange (ARIR Founding Member, Banca Transilvania (ARIR Associate Member), OMV Petrom (ARIR Associate Member), BRD Groupe Societe Generale, Antibiotice (ARIR Associate Member), Rompetrol (ARIR Associate Member), Nuclearelectrica (ARIR Founding Member), Autonom (ARIR Associate Member) și Forvis Mazars (ARIR Affiliate Member).

The Main Partners of the event are: Raiffeisen Bank International, Meta Estate, ACCA Romania.

Media Partners: Agerpres, Business Review, Feel the Markets, Financial Intelligence, Financial Market, IR Magazine, Juridice.ro, Money, Piața Financiară, Internetcorp, Nine O’ Clock, Romania Insider, The Diplomat Bucharest, EventsMax.

Institutional Partners: Limitless, Klarmedia.

ARIR members are among the largest companies in Romania, sharing the common objective of implementing best practices in transparency, investor communication, and corporate governance, covering over 90% of market capitalization.