Press Release

Number of S&P 100 Firms Producing Sustainability Reports Jumps by More Than a Third; Nearly All Offer Sustainability Information

CONTACT:

Peter DeSimone, (202) 872-5359 or pdesimone@socialinvest.org


WASHINGTON, D.C.

December 17, 2009

The number of S&P 100 companies producing sustainability reports with performance data jumped by more than a third in the past year, according to a new report from the Sustainable Investment Research Analyst Network (SIRAN), a working group of the Social Investment Forum (SIF).

Moreover, 93 of the S&P 100 now provide at least some sustainability information on their web sites. SIRAN commissioned KLD, now part of RiskMetrics Group, a leading provider of risk management and corporate governance services to the global financial community, to write the report, titled S&P 100 Sustainability Reporting Comparison.

 

“For most of the past five years, in addition to sustainability reports, we have also seen a gradual increase in the number of companies adopting the Global Reporting Initiative (GRI) reporting framework,” said Sharon Squillace, RiskMetrics’ Research Analyst and Manager of the S&P 100 Project. “Last year, however, the number of companies referencing GRI in their reporting has jumped by an impressive 25 percent.”

 

SIRAN supports the wider adoption of the GRI reporting framework by U.S. firms.  GRI was established to develop standardized indicators for reporting on environmental, social and governance (ESG) factors, which continues to evolve over time through a public, transparent, multi-stakeholder standards-setting process.  GRI is one of the most comprehensive reporting standards available, and use of the GRI guidelines also facilitates comparability and consistency across sustainability reports. While most S&P 100 companies release some sustainability data, only six firms publish complete sustainability reports that meet GRI’s highest, “A” level reporting standard. 

 

Other key findings of the report include:

 

•           During 2008, 93 companies included sustainability information on their web site, up by more than 60 percent from 58 companies in 2004.

 

•           Sixty-six firms produced a formal sustainability report with performance data in 2008, a 35 percent jump from the 49 reports produced in 2007.

 

•           Since 2004, the number of companies making reference to the GRI in their sustainability reports has more than doubled from 24 to 55 of the S&P 100.

 

•           Only 6 of the 55 firms achieved GRI’s highest, “A” level reporting.  An “A” level report provides data for all of the core GRI performance indicators; addresses the management approach for each indicator; and includes organizational information such as identification of key risks and a statement from the CEO addressing the relevance of sustainability at the organization.

 

“The fact that we saw an increase in companies issuing sustainability reports during one of the world’s worst economic downturns clearly demonstrates that ESG information is not a luxury but extremely relevant to companies and their investors,” said Peter DeSimone, SIF’s director of programs.  “This trend supports the idea that investors look for solid ESG performance in valuing companies, and that more and more companies accept this development and are willing to supply information in this area.”  

 

SIRAN has produced the annual S&P 100 Sustainability Reporting Comparison since 2005. To access the fifth annual analysis of sustainability reporting by companies listed on the Standard & Poor U.S. 100 Index, please visit:

http://www.siran.org/projects_s_and_p_reporting_comparison.php. 

 

About SIRAN and The Social Investment Forum

The Sustainable Investment Research Analyst Network (SIRAN), a working group of the Social Investment Forum (SIF), is an analyst network that supports more than 150 North American social research analysts from 30 investment firms, research providers, and affiliated investor groups. The Social Investment Forum is the U.S. national nonprofit membership association for professionals, firms and organizations dedicated to promoting the practice and growth of socially responsible investing (SRI).  Critical to responsible investment practice is the consideration of environmental, social and corporate governance criteria in addition to standard financial analysis.  Forum members support SRI through portfolio selection analysis, shareholder advocacy and community investing. For more information, please see www.siran.org and www.socialinvest.org.

 

About RiskMetrics Group

RiskMetrics Group is a leading provider of risk management and corporate governance products and services to participants in the global financial markets. By bringing transparency, expertise and access to the financial markets, RiskMetrics Group helps investors better understand and manage the risks associated with their financial holdings. Our solutions address a broad spectrum of risk across our clients' financial assets. Headquartered in New York with 20 global offices, RiskMetrics Group services some of the most prestigious institutions and corporations worldwide. For more information, please visit, www.riskmetrics.com.

 

 

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