Corporate responsibility reporting is at an all-time high, but there is still room for improvement
Almost every Global Fortune 250 company now reports its corporate responsibility activity, with 100% of the UK’s Top 100 companies taking part, Charlotte Reid writes.
Corporate responsibility (CR) is now undertaken by 95% of the Global Fortune 250 (G250), and 64% of the largest 100 companies in each country.
CR is a more comprehensive report into the performance of a company, which includes environmental and ethical acts as well as finances.
These reports have an effect on the way businesses works such as how they develop their relationship with stakeholders and tell people about the values and principles behind their company.
Vincent Neate, leader of the KPMG’s UK Climate Change and Sustainability practice, said, “It’s heartening that without exception, the UK’s largest companies are monitoring and reporting on their CR behaviour.
“It’s the latest indicator of CR’s move up the corporate agenda which is entirely sensible given its relationship to sound commercial concerns such as cost reduction, risk management, regulatory compliance and brand enhancement.”
Neate added that, “CR initiatives have moved away from being a moral to a critical business imperative through the finding that almost half of the G250 companies report gaining financial value from their CR.”
A good example of CR within a company is ice cream maker Haagen-Dazs raising awareness of the disappearing honeybee population. To help do this, they launched a website, as well as donating some of the money from its honeybee branding to help with research into the problem.
KPMG believe the report is the most comprehensive study of corporate responsibility ever released. The survey involved analysing data from 3,400 companies worldwide, including the Global 250 (G250) and the top 100 largest companies across 34 countries.
However, as there is no reporting standard for regulatory global sustainability, the report highlighted that there is a need for access to consistent data.
Wim Bartels, global head of KPMG’s Sustainability Assurance, says, “Unlike financial reporting, the disclosure of sustainability metrics to the market is largely unregulated.
“The time has now come to enhance CR reporting information systems to bring them up to the level that is equal to financial reporting, including a comparable quality of governance controls and management.”
If you want to invest in a company that takes its corporate responsibility seriously then talk to your financial adviser if you have one, or complete our form and we’ll connect you with a specialist ethical adviser.
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