2Sustain

In today’s global economy, companies are not only expected to perform financially; they’re expected to be good corporate citizens, as well. Stakeholders are demanding accountability with regard to social and environmental performance, and corporate social responsibility programs are quickly becoming an essential component of corporate success. I’ve certainly noticed the trend toward more corporate responsibility reporting, and I’m sure you have, too. But, just how widespread is the use of CSR reports, and what strategies are being established to support CSR accountability and transparency? A recent survey by KPMG offers some interesting answers.

KPMG conducts an International Survey of Corporate Responsibility Reporting every three years, and the 2008 survey sampled more than 2200 companies, including the Global Fortune 250 (G250) and the 100 largest companies by revenue (N100) in 22 countries. Results of the survey are compiled in a 118-page document that details a wide range of CSR report topics (drivers, process, the use of standards, stakeholder engagement, climate change, corporate governance…).  In addition, KPMG puts several countries under the ‘spotlight,’ highlighting the survey results specific to each nation. (99% of Japan’s N100 companies report on corporate responsibility issues; one-third of Spain’s largest 100 companies do not report on sustainability at all; this is the first year that the survey included Romania; etc.)

Here are a few of the key insights from the 2008 survey:

•    Corporate responsibility reporting is now the norm among the world’s largest companies. Three years ago, about half of the largest 250 companies worldwide issued reports. Now, that number is close to 80%. (In the U.S., 74% of surveyed companies are publishing CSR reports. That’s up from 37% in 2005. )
•    75% of G250 companies include defined objectives in their corporate responsibility strategies. More than 75% of the G250 and about 70% of the N100 use the GRI Guidelines for their reporting.
•    92% of G250 companies have a corporate governance code of conduct or ethics; however, only 59% disclose incidents of non-compliance.
•    Likewise, virtually all G250 companies have a supply chain code of conduct, but only half report details about how it is implemented and monitored.
•    40% of G250 companies and 39% of the N100 include formal third party assurance in their corporate responsibility reports.
•    In the U.S., reporting leaders include communications, automotive, forestry, and chemical sectors.

Take a minute to page through this report. It’s packed with useful information about how corporate sustainability reporting is maturing world-wide.

P.S. One more thing… Most of you have probably read the headlines about the Sustainability Summit  that was held in Beijing last month. Hosted by Wal-Mart, this event was an unprecedented gathering of more than 1,000 leading suppliers, Chinese officials, and NGOs. But, if you haven’t seen/heard the remarks that Wal-Mart’s CEO Lee Scott made at the Summit, I strongly encourage you to do so. He makes this point clear-cut: sustainability is now fundamental to business success.