BSR Insight | Decoding Chinese CSR Reports
About the Author(s)
Xin Zhuo, Former Manager, Advisory Services
Publication Date
September 7, 2010
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Between 2005 and 2009, the number of CSR reports released in China went from less than 10 to more than 500. Unfortunately, this increase in quantity has not necessarily been matched by improved quality. Instead of creating valuable new data for investors, the influx of reports may have just created more for investors to (not) read.
BSR's latest Sustainable Investment in China newsletter (Chinese version here) recommends that investors look for the following when assessing the quality of these reports:
- Disclosure of challenges: Companies that are transparent about challenges—and corresponding solutions—are more likely to have the management culture and level of openness needed to successfully manage environmental, social, and governance (ESG) issues.
- Link to value: A compelling CSR report will demonstrate how appropriate ESG management contributes to cost savings and revenue generation.
- Stakeholder input: With an increasingly complex and interconnected set of external factors impacting business performance, regular engagement with key stakeholders is critical. How a company manages stakeholders' input in its report tells investors the level of sophistication.
- Data integrity: Assurance indicates that a company has a reliable data collection and verification system to ensure integrity and accuracy.
About the Author(s)
Xin Zhuo, Former Manager, Advisory Services
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