Return to Newsletters
|
The good news is that more public company managements are involved in, and approving, broader disclosure on sustainability information. There are widely-accepted frameworks in place to help boards and managements better understand the needs and desires of stakeholders — especially providers of capital (asset owners, managers, analysts) seeking meaningful data and accompanying narrative to explain the progress being made (or lack thereof) in ESG performance. The most widely-embraced among these frameworks include the Global Reporting Initiative’s GRI Standards (previous version known as the GRI G4 — fourth generation); the CDP responses by companies (climate change, water, forestry, supply chain, and more); the RobecoSAM “Corporate Sustainability Assessment” (CSA) survey for consideration for inclusion in the Dow Jones Sustainability Index(es); and the more recent Sustainable Accounting Standards Board (SASB) materiality-focused guidelines for CFOs and CEOs to consider for inclusion in the 10-k and other regulated disclosures (and structured reporting). So how are companies doing? Michael Cohn, Editor-in-Chief, Accounting Today (.com) presented his views on corporate sustainability reporting in a commentary that is our Top Story for you today. He observes: “Sustainability information is increasingly a part of corporate reporting, but many companies are still relying on boilerplate language in their disclosures.” His source is the review by SASB staff of the latest 10-k and 20-F corporate filings by the top companies in 79 industries (SASB has released its suggestions for sustainability-related disclosure that is sought by investors for each of the industries). In the survey, SASB found 69 percent of companies are reporting on at least three-fourths of SASB’s suggested industry standard, with almost 40% disclosing on every SASB topic.(Note that companies in their 10-K filings may or may not directly reference the appropriate SASB standard.) The most common form of disclosure? SASB says…boilerplate language, used more than half the time that a SASB topic was addressed. The most often reported element of “ESG” is the S (social/societal). In the continuing evolvement of more integrated reporting (financial and ESG, with SASB encouraging disclosure via the 10-k), “capital” beyond the financial (capital) was addressed by companies in some way. These included social capital (data security, privacy), human capital (labor relations, health and safety), and environmental (natural). A key element of SASB suggested reporting on the material aspects is innovation and more details of the business model for investors; this was addressed less frequently, said the SASB staff, in the reporting they analyzed. Note that we are still anxiously awaiting the Securities & Exchange Commission moves on the Concept Release (for modernizing Reg S-K disclosure); two-thirds of respondents to the SEC invitation addressed sustainability-related concerns with 80% calling for improved sustainability disclosure in corporate filings with SEC. There’s more details in the Accounting Today commentary (Top Story). Here at G&A Institute we have a comprehensive research and analysis effort underway that will help corporate managements and boards better understand “what matters” to their peers, and to investors, in terms of sustainability disclosure. We’ll be analyzing over 2000 global GRI sustainability reports looking at the materiality decisions of companies in various sectors around the world on many ESG issues, including an examination of issues tied to the Sustainable Development Goals (SDGs). We’ll have more news on that effort in the weeks ahead. Top Stories This Week… Companies struggle to go beyond boilerplate in sustainability disclosures Important Items for Your Attention: Editors’ Sustainability Scans – Progress! Sustainable businesses proving lucrative CEO Perspective: On Sustainability The sustainability agenda Source: Sustainable Brands – Two of the world’s leading sustainability certification bodies, Rainforest Alliance and UTZ have announced plans to merge later this year in an effort to simplify the certification process for sustainable agriculture. Why sustainability teams should engage CFOs much earlier New Winds Of Sustainability And Responsible Business 3 benefits of environmental sustainability Source: GreemBiz – Green initiatives have taken root in the corporate world. Rising numbers of companies have promised to cut emissions, protect forests and watersheds, reduce food waste and take other steps to ensure a sustainable future for all…. Sustainability leaders, note: There’s no more room for silence Triple Bottom Line Sustainability Reconsidering the sustainability of hydropower Our Focus This Week on A Range of ESG Topics & Issues — Things to Think About.. Oil producer Norway bans use of heating oil in buildings Oil Extends Slump as U.S. Fuel Glut Leaves Market Disheartened How NASA’s Satellites Can Help Solve The Middle East Water Crisis In the wake of Gymboree’s bankruptcy filing, here are the retailers that could be next
News & Opinion: Asset Managers, US Pension Funds, Sovereign Wealth Funds Five Facts About Sovereign Wealth Funds That Will Blow Your Mind Nigeria: Discordant Voices Over Sovereign Wealth Fund Pension Funds in Illinois, NY Back Out of Hedge Funds . News for You From the Corporate Sector Facebook Outlines Its Strategy for Taking Down Extremist Content Source: Triple Pundit – Building upon the company’s strong commitment to sustainability, Southwire recently launched its third report, written in accordance with the Global Reporting Initiative’s (GRI) G4 Guidelines Core option. This interactive, online… The 5 largest US banks are launching a Venmo ‘killer’ Jeffrey Immelt Set to Retire as General Electric Chief EpiPen maker Mylan under fire for CEO’s $98 million pay package Verizon closes Yahoo deal, Mayer steps down How Companies Actually Decide What to Pay CEOs HP reveals new sustainability goals These are the 47 things Uber has agreed to do to change its company culture Trump Administration News… Affecting Directions on Governance, Sustainability & Climate Change Trump Administration Calls for Major Revamp of Wall Street Rules Trump’s Paris Decision: Let’s Make a Deal (or Not) Sustainability Will Endure Despite Trump’s Approach, Experts Say |
_________________________________________
G&A Institute Sustainability Update™ _________________________________________
_________________________________________ Governance & Accountability Institute Featured Service _________________________________________ Governance & Accountability Institute Research
_________________________________________ GRI’S USA, UK & IRELAND
G&A Institute is the exclusive Data Partner for the Global Reporting Initiative’s (GRI) in the USA, UK and Republic of Ireland. We identify, receive, collect, analyze, database, and communicate about every report issued in any of the 3 countries. Over the past 6+ years, G&A analyzed 6,000-plus sustainability reports in this pro bono role and databased 100+ important data points for each report.
_________________________________________
Navigating the way to sustainability… Copyrights for other providers are noted where appropriate. Please credit the source if quoted. |
|||||||||||||||||
|
The Sustainability Highlights eNewsletter is prepared by Governance & Accountability Institute, Inc. based on continuous monitoring of trends and developments in Sustainability and ESG. Governance & Accountability Instiute is the “Sustainability Headquarters™” for clients in the corporate, investment, public and social sectors. Based in New York, G&A is a for-profit consulting organization providing a range of value-added strategies, services and resources related to ESG & sustainability to clients in the corporate and capital markets communities. For G&A’s full range of services, click on each of the links below: For more information, contact Governance & Accountability Institute, Inc. |
||||||||||||||||||
Corporate Sustainability Disclosure – On the Rise But Does the Disclosure Address What Investors Seeking?
June 28, 2017
Gap Analysis
