Geopolitical volatility has made governance more important than ever

Governance professionals, from the corporate secretary to the IRO to the chief governance officer, are at the frontline for communication and engagement with shareholders. These roles are as complex as they are satisfying while navigating the constant turbulence. At any given time, new regulatory requirements, shareholder tendencies or political factors demand a response.  

As a public company and transfer agent to thousands of companies, Computershare has a unique perspective on numerous topics governance leaders face. In particular, the economic and social impact of the current geopolitical environment are among several issues that are top of mind this year.  

The rule of thumb in polite society has always been ’politics should be avoided in conversation.’ Governance professional and IROs do not enjoy this luxury, though this is not entirely a bad thing. Many of the topics making headlines, from tariffs to social issues, are the very issues stoking opportunities to engage with shareholders.  

News about shifting ESG policies or changes to 13D filing requirements can be a good catalyst to set a meeting with shareholders. This is consistent with trends as IROs, in particular, are becoming a more visible, present voice in the room with investor roadshow efforts. 

Take the rapidly changing geopolitical landscape across the world. The current environment is significantly impacting company engagement strategies, driven by shifting views on ESG matters, increased scrutiny of senior management, and uncertainty over future quarters. Despite changes in SEC policies affecting investor feedback, engagement remains intense and complex.  

Timely and strategic communication is crucial to ensure investors understand the value of their investment and remain committed to the long term.

The geopolitical and macro-economic environment is influencing management's priorities, focusing on operational stability and business continuity. Shareholders seek confidence, clarity and strategic vision, making communication and engagement crucial yet challenging.  

In 2025, many biopharmaceutical companies, particularly small caps, face urgent challenges in differentiating their engagement amid rapidly shifting geopolitical policies. In this volatile climate, the role of governance professionals is critical, with fund managers cautious about making decisions based on limited information. Effective communication is key, as long-term investors prioritize quality franchises, strong market positions, and financial resilience. 

In the evolving policy landscape or investor agendas, governance and IR roles are critical and shareholder intelligence and technology are beneficial tools.  

Facing winds of change head on, governance and IR teams must effectively communicate how their businesses have consistently weathered storms and turned market dislocation into opportunities. Timely and strategic communication is crucial to ensure investors understand the value of their investment and remain committed to the long term.  

Key strategies include maintaining two-way communication with a broader set of stakeholders, tailoring messages to different investor types, incorporating ESG and governance metrics into storytelling and engaging early with proxy advisors and key shareholders ahead of proxy season or transactions. This approach helps build confidence and clarity, ensuring that investors stay invested in the company's story. 

In today's data-informed age, governance and IR professionals need to stay ahead of the trends, leveraging tools that sharpen their decision making. This includes the ability to tell compelling stories, connect management with the right investors and gain insights into investor thinking.  

These strategic value-adds are elevating governance roles. As governance and IR evolve from a communications function to a strategic bridge between capital markets and corporate leadership, staying ahead of investor expectations and emerging risks is essential.
 
The Computershare team has compiled Managing the rapid evolution of investor engagement as a guide to help governance and IR professionals think through many of these current issues – from activist campaigns, policy change, annual meeting planning to considering geopolitical shifts. You are invited to gather and network with other governance and IR professionals at Computershare’s annual US client conference in Washington, DC, taking place September 17 to 19.  Register today.