BSR Insight Articles About Reporting & Communications

Reporting on Sustainability Strategy

Virginia Terry, Former Director, Advisory Services

Over the past couple years, the corporate responsibility community has seen a legion of material (including our own articles and Conference sessions) focused on integrated reporting. All of this attention seems to indicate that the practice of creating one report covering both financial and sustainability performance and addressing the connections between the two has taken a firm hold. It hasn't. Only a handful of companies--including UTC, Novo Nordisk, and Philips--are publishing integrated reports. And it is far too early to predict whether integrated reporting will become a standard practice, especially in the absence of government mandates. But even if it does not, the concepts behind integrated reporting are likely to have a profound--and positive--influence on sustainability reporting, particularly when it comes to how companies communicate about their overall sustainability strategy. By the Corporate Register's account, nearly 6,000 companies published sustainability reports last year. At BSR, we see a wide range of quality in the way companies present and communicate their overarching strategy for sustainability. While a number of these reports demonstrate a company's recognition of the importance of sustainability for business, far too many fail to explain how company leaders are thinking strategically about sustainability and integrating long-term considerations of environmental and social trends into their approach for business success. If companies adopt some of the building blocks of integrated reporting--especially the future-orientation, connectivity of information, and contextualization--there is likely to be a marked improvement in the quality and value of sustainability reporting more generally. And all of this is likely to have a positive impact on corporate strategy. Read more →

Posted: May 29, 2012 | Topics: Reporting & Communications

France to Update CSR Reporting Law in May

With France poised to renew its CSR reporting law next month (it will apply starting January 1, 2013), it’s a good time for companies with operations in France to consider how the changes could affect them. Later this year, BSR will publish a paper on the implications of the new law. In the meantime, here’s a primer: What the law will cover: Article 225 updates France’s 2002 New Economic Regulation, which requires reporting on 32 social, environmental, and governance indicators, including employment figures, waste management, and anti-corruption practices. The new law calls for six new indicators: diversity and equal opportunity, climate change, stakeholder relations, social and environmental issues in procurement, consumer safety and health, and human rights. Which companies the law will affect: The law applies to all business entities with more than 500 employees and €100 million (approximately US$131 million) in revenue that have operations in France—including corporations (SAs) and publicly traded partnerships (SCAs). Other entities—most notably LLCs (SARLs) and wholly owned subsidiaries (SASs)—are not affected by the current draft of the law, but this portion of the law is under review. Read more →

Posted: April 17, 2012 | Topics: Reporting & Communications

Investor Insights: Improving ESG Disclosure by Chinese Companies

Lindsey Lim, Former Associate, Advisory Services

Cross-sector collaboration is needed to create effective, industry-specific ESG disclosure guidelines for Chinese listed companies. Read more →

Posted: March 20, 2012 | Topics: Financial Services, Investor Perspective, Reporting & Communications

Report: Companies Compiling Sustainability Data Inefficiently

While the number of annual corporate sustainability reports continues to grow—a record 48 percent of S&P 500 companies compiled CSR reports last year—many of these reports are undermined by the tools companies are using to produce them, according to a recent study by Ernst & Young that was published in conjunction with GreenBiz. The study surveyed executives and thought leaders who work in corporate environmental strategy and performance. Read more →

Posted: March 20, 2012 | Topics: Reporting & Communications

Shareholder Activism, SRI Identified as Useful Tools for Change

Laura Gitman, Managing Director, Advisory Services

Shareholder activism and socially responsible investing (SRI) are viewed as important tools of social and corporate change, according to a recent SustainAbility and GlobeScan study (available with free registration).The study, which surveyed more than 640 sustainability experts from 77 countries, revealed that shareholder activism is more effective at driving changes in corporate strategy and behavior than other tactics, including public criticism through social and traditional media, dialogue with companies, and civil disobedience. Findings suggested that only product boycotts and preferential purchasing are more effective than shareholder activism. At BSR, we have found that shareholder activism has been most powerful in driving governance changes, increasing corporate reporting and transparency on sustainability issues, and raising attention to critical issues such as conflict minerals. Companies should look to engage their investors proactively and communicate about their material environmental, social, and governance issues, which can help them avoid shareholder resolutions and ensure their progress aligns with investor expectations. Read more →

Posted: March 13, 2012 | Topics: Investor Perspective, Reporting & Communications, Stakeholder Relations