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| Examining the Bloomberg Average ESG Disclosure Scores– Higher For S&P 500(R) Companies That Disclose/Publish Sustainability Reports With Relevant ESG Data
At G&A Institute we continue to look at the S&P 500(R) universe of companies in two groups: those companies that have published in some form a sustainability, corporate responsibility, citizenship or some related titling to publicly disclose important data and narrative on their ESG strategies, actions, performance and achievements. And, a second group, those companies that do not disclose / report on ESG factors. This is an important corporate universe, representing more than 80% of the available market coverage and is the best single gauge of large-cap U.S. equities. Some US$7 trillion in Assets Under Management benchmarked to the S&P 500, including $1.0 trillion in index products. When our team started tracking the ESG / CR / Sustainability reporting practices of these leading U.S. companies, we determined that just under 20% of companies had published data and narratives in 2011.That meant that 8-out-of-10 large-caps in the universe did not report. In 2012, we saw a dramatic shift: 53% — more than half of the 500 — were reporting. That increased to three-quarters of companies in 2014 and edged up to 81% reporting by 2015. And the non-reporters steadily declined to now only 19% of the 500 leading companies. We partnered with Bloomberg LP as we continued our analysis to see if the reporting companies were favored with higher disclosure scores in the Bloomberg LP ESG dashboard resource, and if non-reporters were assigned a lower score. “The Bloomberg” is accessed by more than 325,000 professional users around the world and the ESG Dashboard is among the fastest-growing resources available to users. Result: “Average Bloomberg ESG Disclosure Scores” assigned to reporting companies were higher for E, S, G and ESG combined scores. E and S score differences were pronounced – reporters were assigned higher averages. Makes sense: large-caps disclosing and doing structured reporting on their sustainability journey are providing this very important global investment information service provider (Bloomberg LP) with information needed to help investors evaluate risk and opportunity — and make important portfolio management decisions. Our thanks for Hideki Suzuki, Senior Corporate Governance Analyst at Bloomberg for his collaboration with G&A. As he observes: “ESG investment space continues to evolve. We are moving beyond disclosure. Bloomberg provides performance assessment tools based on quant data provided by companies. For that to be meaningful and actionable by investors, we need quality data from companies that is aligned with company FY end and scope of disclosure covering what is covered in their financial statement disclosure.” Sounds like the S&P 500 large-cap reporting companies have gotten the message! You can read the details of the Bloomberg – G&A Institute analysis in our Top Story. Top Story
Sustainability in Focus Comment: Sustainability matters Does sustainability make better and more adaptive businesses? 5 ways that NGOs stunt sustainability How Manufacturers Can Maximize Environmental SustainabilityBy Economic concerns drive sustainability in American cities and towns Sustainability’s new frontier: Asia You want to join the sustainable investment trend. Now what’ Commentary: Pondering the many sides of sustainability Smart Manufacturing Improves Sustainability Efforts Timberland Announces Bold Sustainability Goals for 2020 What one milk carton says about sustainability messaging around the world Inside agriculture’s sustainability inflection point Sustainability Best Practices: What Does It Really Take To Be A Sustainable Company Sappi North America Releases 2015 Sustainability Report
ESG Issues & Players Saudi Arabia will struggle to kick its addiction to oil The Changing Face Of Socially Responsible Investing Warren Buffett Faces Pressure to Invest for the Climate, Not Just for Profit Mitsubishi Admits It Has Falsified Mileage Data Since 1991 U.S. Senator: ‘Global Warming is…the Moral Challenge of Our Generation’
Asset Managers, US Pension Funds, It’s Still Goldman Sachs And Wells Fargo Socially Responsible Investing for Public Employee Pension Fund? 1MDB president: I never admitted there was fraud Watching the Watchers Headquarters: San Francisco, CA ESG/Sustainability Focus: Yes: focus on corporate responsibility. KEY PARTNERS Clients include Domini Social Investments and Calvert Group – two of the largest SRI asset managers and mutual fund companies in the US. Also – clients and partners include these firms:Disney; McDonald’s; Dell; HP; Starbucks; Coca-Cola; Time-Warner; Gap; Home Depot; Staples. OVERVIEW/MISSION The organization’s vision is “A safe, just, and sustainable world in which environmental health and human rights are central to corporate decision making.” The organization’s focus is on: Corporate Responsibility; Sustainability; Human Rights; Health & Safety; Environmental Enforcement; Grantmaking. As You Sow has been a prominent player in proxy voting and shareholder action for many years. News Sweeps
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G&A Institute Sustainability Update™ A Fascinating Look Into the 21st Century – The Forbes Interview With Hank Boerner by Chris Skroupa _______________________________ G&A Supports GSC
Governance & Accountability Institute Service Highlight _______________________________ _______________________________
Sustainability & Corporate Responsibility Reporting G&A Institute is the exclusive Data Partner for the Global Reporting
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Navigating the way to sustainability… Copyrights for other providers are noted where appropriate. Please credit the source if quoted.
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| SustainabilityHQ Highlights is prepared by the Governance & Accountability Institute, Inc. based on continuous monitoring of trends and developments in Sustainability and ESG. Click here for more information on the Governance & Accountability Institute’s SustainabilityHQ resources. The SustainabilityHQ™ platform is available by subscription.
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. The G&A services portfolio includes: SustainabilityHQ™ is managed and published by Governance & Accountability Institute, Inc. |
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Examining the Bloomberg Average ESG Disclosure Scores– Higher For S&P 500® Companies That Disclose/Publish Sustainability Reports With Relevant ESG Data
May 4, 2016
