Biopharma Leaders and Institutional Investors Seeking Effective, Efficient, and Decision-Useful Communications about Long-Term Business Strategy, According to New Report From CECP's CEO Investor Forum and the Biopharma Sustainability Roundtable

Research shows ESG performance is strongly predictive of long-term value creation and financial performance, when a sector-specific approach is maintained
Mar 22, 2021 12:00 PM ET
Press Release

NEW YORK, March 22, 2021 /3BL Media/- As the world begins to emerge from under the weight of multiple crises, investors are seeking more effective and efficient ESG (environment, social, governance) communications directly from companies, which include a longer-term strategy and vision. Answering that call, Chief Executives for Corporate Purpose’s (CECP) CEO Investor Forum, an advisor that empowers CEOs on their journey to refocus investor expectations toward the long term, and the Biopharma Sustainability Roundtable (BSRT), a sector-specific collaboration platform that works with senior biotech and pharma executives to help drive their sustainability agendas forward, released a joint report on Integrating Sustainability and Long-Term Planning for the Biopharma Sector.

The report’s authors believe that simplifying and increasing the value of communications with capital markets and the broader universe of stakeholders requires looking at issues through an industry lens, not a one-size-fits-all solution. The new report, together with a companion practitioner’s guide, provide sector-specific tools for biopharma CEOs and their teams as they prepare sustainable Long Term Plans to share with investors. Combining CECP’s Long Term Plan framework and BSRT’s Biopharma Investor ESG Communications Guidance will help tailor content and perspective for the biopharma sector.

"It’s critical that biopharma companies communicate effectively with capital markets about their material ESG issues and how they’re being managed—especially in areas that are unique to the sector such as access to medicine, product quality, and appropriate pricing,” stated Brian Tomlinson, Research Director, CEO Investor Forum, CECP. “Our work with the Biopharma Sustainability Roundtable provides sector-specific guidance to help companies set out a long-term value story that incorporates key ESG factors."

“An ongoing dialogue between issuers and investors with a strong sector focus is key to building trust and creating a thoughtful consensus on ESG topics, and that’s the path we’re following to improve communication between the parties, making it decision-useful, effective, and efficient,” said Thomas Scheiwiller, Co-founder, Biopharma Sustainability Roundtable.

Companies and investors are both challenged by the complex and rapidly evolving landscape of ESG standards and regulatory requirements. Maintaining a sector-specific focus will be a key part of a successful response. For biopharma to address today’s global needs, including equitable access to medicines. high product quality, patient safety, and environmental impacts, it is essential to communicate more long-term and forward-looking information that integrates ESG considerations, including governance, business strategy and objectives, risks, opportunities for positive impact, and performance.

On June 7-8, 2021, CECP’s CEO Investor Forum and the Biopharma Sustainability Roundtable will co-host the first sector-specific CEO Investor Forum event. Attendees will hear CEOs from GSK, Incyte, Merck, Moderna, Pfizer, Sanofi, Takeda, and UCB present their Long-Term Plans for sustainable value creation. A range of industry experts will also contribute their perspectives, including representatives from the Johnson & Johnson, NYU Stern Center for Sustainable Business, PwC, the Timmerman Report, and more. Registration will be announced shortly.

###

ABOUT CECP’S CEO INVESTOR FORUM
The CECP’s CEO Investor Forum is a global organization preparing corporate leaders for the next generation of stakeholders. The Forum provides support and guidance to CEOs on how to develop and communicate their long-term strategy to institutional investors and other key constituencies. Through a proprietary content framework, advisory services, and events, the Forum empowers CEOs to proactively set the context, own their narrative, and lead toward a sustainable future. CEO Investor Forum is chaired by Bill McNabb, former Chairman of Vanguard and Alex Gorsky, CEO of Johnson & Johnson. https://cif.cecp.co/. CECP is a CEO-led coalition that believes that a company’s social strategy — how it engages with key stakeholders including employees, communities, investors, and customers —determines company success. http://cecp.co

The CEO Investor Forum, formerly known as the Strategic Investor Initiative, has established itself as a principal research and thought leader in the space of ESG, corporate disclosures, and long-term value creation. Publications including The Return on Purpose, Reorienting Capital Markets Toward the Long-Term, Emerging Practice in Long-Term Plans, The Economic Significance of Long-Term Plans, Method of Production of Long-Term Plans, and ESG and the Earnings Call have been widely cited and republished in leading corporate finance journals and media. See the complete collection of research and resources available on the CEO Investor Forum’s website.

ABOUT THE BIOPHARMA SUSTAINABILITY ROUNDTABLE

The Biopharma Sustainability Roundtable is a sector-specific collaboration platform that works with senior biotech and pharma executives to help drive their sustainability agendas forward. We facilitate an annual program of webinars and peer-to-peer forums each spring, a sector-focused “State of Sustainability” survey, and an annual fall conference, all addressing a broad agenda of ESG topics defined in collaboration with our participants. Executives and invited thought leaders come together to explore sustainability challenges and trends, examine cutting-edge industry topics, share best practices, and learn from each other. The Roundtable also facilitates focused initiatives that engage participating biopharma companies and key stakeholders in collective action, including the Biopharma Investor ESG Communications initiative. Learn more at biopharmasustainability.com