2Sustain

July was a banner month for news about big business and sustainability reporting. Here are just a few examples:

Early in the month, El Paso Corporation made headlines by releasing its first CSR report, “Building a Legacy.” Based on Global Reporting Initiative (GRI) G3 guidelines, the report describes the company’s economic, social, and environmental impact. It also outlines the policies, procedures, and resources El Paso has put in place to: attract and retain a competitive workforce, make meaningful and significant contributions in communities through employee volunteerism and charitable giving, and increase shareholder value. Congratulations to El Paso, which also ranks as the first company to achieve Climate Action Leader status by the California Climate Action Registry, and as one of Fortune Magazine’s Most Admired Companies.

A few days later, Daimler announced that it has established a top management level Sustainability Board. In addition, the company introduced its new “360 Degrees” sustainability report, another document closely aligned with internationally recognized GRI standards. Daimler AG also said it has revamped sustainability guidelines for its suppliers based on standards established by the International Labor Organization and the United Nations Global Compact. In the first edition of Daimler’s new sustainability newsletter, I think Dr. Heinrich Reidelbach, Vice President Corporate Procurement Services at Daimler sums up the company’s efforts quite well. “Only by achieving a balance between business success, social responsibility, and effective environmental protection will we be able to maintain our outstanding performance in our sales markets over the long term,” he says.

Okay. There you have two very recent examples of how big business is starting to prioritize sustainability. But, two isolated data points aren’t sufficient to create a “banner month.” The other important news in July is that we now have indication that examples like these are part of a larger big business trend. 

Just last week, the Sustainable Investment Research Analyst Network (SIRAN), released a study showing that more than half of the S&P 100 now report on their sustainability efforts. In fact, the 2008 S&P 100 Sustainability Report Comparison, which evaluates SIRAN data through the end of 2007, shows a significant increase in sustainability reporting and the use of GRI since mid-2005. In addition, here are a few other key findings:

• 86 of the S&P 100 now have sustainability websites (an increase of 48% since 2005)
• 49 of the S&P 100 produced a sustainability report in 2007 (an increase of 26% since 2005)
• 41 companies include a reference to the GRI standards (up 71% since 20005)
• 34 companies now include a GRI index in their report (up 70% since 2005)

(To see how each of the S&P 100 fared in the report, check out SIRAN’s detailed summary.) 

So, this July there’s some solid evidence that big business may be on its way toward a sustainable future. And, of course, they’re not alone. Small and medium-sized business are establishing green initiatives in growing numbers, as well. While I know that we all still have a long, long way to go, I can’t help but feel buoyed by the headlines from these last few weeks. Taken altogether the news is encouraging.