Issue: Improving ESG disclosure
IPG Photonics is a US-based capital goods business that specialises in making high efficiency fibre lasers for use in a wide variety of manufacturing applications. The company has historically not produced any substantive sustainability disclosures and we engaged with the company to encourage them to do so.
The specific objective was to get the company to commit to and then to produce some disclosures covering key environmental, social and governance (ESG) issues at the company.
Scope and process
Working with a small number of US-based investors, we initially met with the Chief Financial Officer (CFO) and raised the lack of ESG reporting in subsequent correspondence. Over the following years, we have engaged with the CFO, the General Counsel as well as the Vice President for Investor Relations through written correspondence and several teleconferences.
IPG Photonics produced its first Corporate Responsibility Report in 2015. Since then, the company has expanded the amount of data that they report and has also introduced an ‘ESG’ section into their standard investor presentation that includes data on the positive impact of the product in reducing energy use, health and safety data as well as data on recycling and other environmental programmes at the company.