2Sustain

Even though investors and companies increasingly agree on which corporate environmental, social, and governance (ESG) issues affect a company’s financial value, there are still disconnects regarding metrics and disclosure. A new study, Finding Common Ground on the Metrics that Matter, released by the Investor Responsibility Research Center (IRRC) Institute, deep dives into these concerns and provides the first comprehensive analysis of which corporate ESG information is tracked by companies and how it is –or isn’t –consistent with analogous information sought by investors, researchers and other stakeholders.

In broad terms, the study revealed that:

• There is agreement on key corporate sustainability issues, but not on the metrics used to measure the management of them, nor on the purposes served by examining corporate ESG information.
• Though ESG metrics routinely are reported on request by many companies, few report all the ESG information they collect internally.ESG researchers, investors and corporate representatives approach ESG issues from a risk mitigation perspective, not a value creation perspective.

In addition, key data from the study concluded that: (more…)

Recent research by KPMG found that even though corporate responsibility reporting has reached an all-time high among the Global Fortune 250 (G250), many of the reports lack rigor.

Now, another new study offers an even harsher critique.

After analyzing more than 4,000 corporate social responsibility (CSR) reports, rankings and surveys published by companies worldwide over the past 10 years, researchers at the University of Leeds and Euromed Management School (France) found that most included significant errors, such as unsubstantiated claims, gaps in data and inaccurate figures.

In fact, out of 443 European Union companies featuring in the FTSE All World Index between 2005 and 2009, fewer than one in six reported greenhouse gas emissions that covered all corporate activities, while others were vague, failing to reveal precisely how the data applied to specific activities.

The research uncovered some glaring examples of misinformation. (more…)

Most Americans have high expectations for the nation’s businesses, but the vast majority also thinks Corporate America failed to meet those expectations in 2010. In fact, when StrategyOne asked 1,081 Americans how well Corporate America did last year, 82 percent assigned a grade of ‘C’ or lower and 40 percent assigned a grade of ‘D’ or ‘F.’ Just 17 percent gave Corporate America an ‘A’ or a ‘B’ for their 2010 performance.

Other survey highlights included: (more…)

As BSR found earlier, a new global study by KPMG International reveals that companies are continuing to adopt sustainable business practices.

Results from the survey of 378 large and medium-sized companies spread across 61 countries show that 62 percent already have an active sustainability program in place. Another 11 percent say they are currently developing one.

Why are companies adopting sustainability programs? Survey respondents cited:

• pressure from regulators,

• rising concern over the potential for brand and reputational damage, and

• increasing support for sustainability on operational and commercial grounds once the practical benefits were realized.

And just what are these “practical benefits?” As it turns out, they’re substantial. Specifically, the list includes: (more…)

Here’s the good news: Nearly half (47 percent) of the 500 senior executives who participated in a recent survey said they plan to invest up to 50 percent more to make their businesses more sustainable over the next decade.

However, that one finding only tells part of the story. (more…)