More large U.S. companies
reporting on social and environmental issues
By IR Web Report Staff
A growing number of S&P
100 companies are reporting on their environmental
and social performance, according to a study by
the Social Investment Research Analysts Network
(SIRAN) conducted by the independent investment
research firm KLD Research & Analytics, Inc.
There also is growing recognition of the Global
Reporting Initiative's (GRI) sustainability
reporting guidelines, with more than one-third
of companies referencing the standards, according
to the study.
However, those following the guidelines tend
to do so loosely rather than
"in accordance" with the guidelines. Only six
companies reported "in accordance" with GRI,
the same number as last year.
General
Motors was the only company in
the study to meet all seven criteria for online
sustainibility reporting. Other performers included
Weyerhaeuser
Company, Hewlett-Packard
Company, Intel
Corporation, Ford
Motor Company and International
Paper Company.
A complete list of companies and their results
is posted here.
The survey, which was first conducted in 2005,
sought to answer the following seven
questions:
1. Does the company have a separate CSR/Sustainability
section of its website?
2. Does the company have an annual CSR/Sustainability
report?
3. Does the report reference the GRI in the
report?
4. Does the company provide a GRI content index?
5. Does the report have goals and benchmarks?
6. Is the company a GRI Organizational Stakeholder?
7. Is the report produced "In Accordance" with
the GRI?
Among the new findings:
- 79 companies in the S&P 100 now have
special sections of their websites
dedicated to sharing information about their
social and environmental policies and performance,
up 34% from last year when 59 did.
- 43 companies now issue annual CSR
reports, up from the 39 companies.
- 34 companies say they base their CSR reports
on the GRI's reporting guidelines.
This was up from 25 companies in 2005.
For the past several years, we have been tracking
how large companies worldwide are communicating
their social, environmental and corporate governance
practices to investors. There is definitely
an increase in activity, but companies still
seem to be struggling with what information
to provide to investors and how best to do so.
The challenge for companies' IR departments
is balancing the relatively low level of interest
from the vast majority of investors with the
high level of interest from an influential segment
of the investor population, typically powerful
public pension funds and European institutional
investors.
Our guidelines
specific to investor relations suggest a pragmatic,
focused approach. It never hurts to tell a good
news story, but it is important for your company's
credibility with investors to avoid marketese
and apple pie.
If you would like ideas on integrating CSR/sustainability
reporting into your online IR communications,
we provide them in our member
reviews and scorecards
or we can tailor a report to your specific needs.
Read our