The S&P 500® Universe — Setting the Pace for Corporate Sustainability Reporting: 90% Mark Reached!
Posted on August 9, 2020 by Hank Boerner – Chair & Chief Strategist#Business & Society #Corporate Citizenship #Corporate CSR Reporting #Corporate Governance #Corporate Responsibility #Corporate Sustainability #Financially Material #Global Reporting Initiative #SASB #SDGs #Sustainability Big Data #Sustainability Reporting
|by Hank Boerner – Chair & Chief Strategist – G&A Institute
The popular corporate equity “baskets” including the Dow Jones Industrial Index, Nasdaq 100, S&P 500, the Russell 1,000 – 2,000 – and 3,000– in essence consist of the underlying value of the corporate shares in each basket (or benchmark for investors).
Today, there is an ocean of stock indexes for asset managers to license from the creators and then apply process and approaches for keeping track of the companies in the fiduciary portfolio, or to analyze and pick from the underlying issues for their portfolio.
Alternative benchmarks and indexes may be dependent on market cap size and have variations in the index family to fine tune the analysis (think of the varieties of Wilshire, Russell, S&P Dow Jones, etc.).
There has been a steady move by many asset managers from “active management” to passive investment instruments, with this transition key benchmarks become an important tool for the analyst and portfolio manager.
One large-cap index really dominates the capital markets: The S&P 500.
G&A Institute’s Annual S&P 500® Research
Almost a decade ago, the team at G&A Institute began gathering corporate reports to build our models and methodology for guiding client’s corporate disclosure and reporting — and focusing especially on the structured reports of U.S. publicly-traded companies, we selected the universe of companies that the index creators include in the S&P 500 Index®.
Here’s why: The S&P 500 Index is the most-widely-quoted index measuring the stock performance of the 500 largest investable companies listed on American stock exchanges. Asset managers licensees like State Street, MCSI, Invesco Capital and London Stock Exchange Group use this index for their constructing ETFs and other investable products.
This universe of public companies provided for our team a solid foundation for tracking and analyzing the activities of these 500 companies as they began or expanded their sustainability reporting. In 2011, that first year. we found just about 20% of the 500 were publishing sustainability reports.
And here’s the dramatic news:
Tracking the Trends
We’ve organized the deliverable for both quick scanning and concentrated reviewing. Let us know if you have questions about the research results.