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KPMG InternatIonal
The KPMG Survey of Corporate
Responsibility Reporting 2013
kpmg.com/sustainability
Contents
aboutthissurvey 3
Methodology 5
Corporateresponsibilityreporting:isitreallyworthit? 9
Keyfindings 10
Part1:GlobaltrendsinCRreporting:aviewacross41countries 18
Crreportingrates:asiaPacificseesstrongestgrowth 21
regulationdrivesgrowthinCrreporting 23
anarrowinggapbetweenleadingandlaggingsectors 26
MorecompaniesreportonCrintheannualreportbut‘integratedreports’areinaminority 27
GrIremainstheleadingreportingframework 30
assurancereachesatippingpointamongtheworld’slargestcompanies 32
Dataqualitystabilizesamongtheworld’slargestcompanies 33
Part2:Thequalityofreportingamongtheworld’slargestcompanies 34
Introduction 36
lessonsfromtheleaders 39
1:Strategy,riskandopportunity 47
2:Materiality 53
3:targetsandindicators 57
4:Suppliersandthevaluechain 61
5:Stakeholderengagement 67
6:GovernanceofCr 71
7:transparencyandbalance 75
aboutKPMG’sClimateChange&SustainabilityServices 79
acknowledgements 80
©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated. theKPMGSurveyofCorporateresponsibilityreporting2013 2
3 theKPMGSurveyofCorporateresponsibilityreporting2013©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated.
Aboutthissurvey
WelcometotheKPMGSurveyofCorporateresponsibilityreporting2013.
KPMG’ssurveyispublishedprimarilyforbusinessleaders,companyboardsandcorporateresponsibility(Cr)andsustainabilityprofessionals.ItprovidesasnapshotofcurrentglobaltrendsinCrreportingwithbenchmarks,guidanceandinsightstohelpcompaniesworldwidedeterminetheirownapproachestoCrreportingandtoassessandimprovethequalityoftheirreports.
thesurveyisalsointendedtoprovideausefulreflectionofthecurrentstateofCrreportingforotheraudienceswhotakeaninterestinthesubject.theseincludeinvestors,assetmanagersandratingsagencies,manyofwhomareincreasinglyfactoringenvironmental,socialandgovernanceinformationintotheirassessmentsofcorporateperformance.
Corporatestakeholders,includingnGos,customers,academicsandstudents,andpolicymakersshouldalsofindusefulinformationandfoodforthoughtinthesepages.
thisistheeightheditionoftheKPMGSurveyofCorporateresponsibilityreportingandmarks20yearssincethefirstsurveywaspublishedin1993.thisyeartheresearchismorebroad-rangingthanever,covering4,100companiesacross41 countries(thelastsurveyin2011lookedat3,400companiesin34countries).
thegrowthinthenumberofcountriesandcompaniescoveredinthissurveyisjustoneindicationofhowCrreportinghasevolvedintoamainstreambusinesspracticeoverthelasttwodecades.
theformatofthissurveyhaschangedtoreflectthatevolution.theresultsarenowpresentedintwoparts:
Part1:GlobaltrendsinCRreporting:aviewacross41countries(page18)thissectionlooksatthe100largestcompaniesbyrevenuein41countriestoexplorehowmanycompaniesareproducingCrreportsandotherissues,suchasthedriversforreporting,sectorvariances,andtheuseofstandardsandassuranceforCrreports.
Part2:Thequalityofreportingamongtheworld’slargestcompanies(page34)thissectionlooksspecificallyattheworld’slargest250companies.ItassessesthequalityoftheirCrreports,identifiesleadersandusestheseexamplestoofferguidanceandinsights.
©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated. theKPMGSurveyofCorporateresponsibilityreporting2013 4
5©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclient
theKPMGSurveyofCorporateresponsibilityreporting2013 servicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated.
Methodology
ScopeofthisreportthesurveyisbasedonadetailedstudyofcompanyreportingonCrperformance,carriedoutbyKPMGmemberfirms’professionalsandbasedonpubliclyavailableinformationinannualfinancialreports,stand-aloneCrreportsandoncompanywebsites.ItincludesinformationprovidedinbothPDFandprintedreportsaswellasinweb-onlycontent.reportspublishedbetweenmid-2012andmid-2013weresoughtinthefirstinstance.Ifacompanydidnotreportduringthisperiod,informationfrom2011wasused.Informationrelatingtoperiodspriorto2011wasnotincludedinthissurvey.the findingsarebasedonanalysisofpubliclyavailableinformationonly,andnotoninformationsubmittedbycompaniestoKPMGmemberfirms.
Figure1:ReportingterminologyusedbyN100
43
25
14
6
6
2 2 1 1
Sustainability
Corporate social responsibility (CSR)
Corporate responsibility (CR)
Sustainable development
Other
Corporate citizenship
Environmental and social report
Anoteonterminology:‘corporateresponsibility’versus‘sustainability’terminologyusedforreportingvariesbetweencompanies.researchconductedforthissurveyshowsthemostcommonlyusedtermsgloballyare‘corporateresponsibility’(14percent)or‘corporatesocialresponsibility’(25 percent)and‘sustainability’report(43percent).reportingundertheseandothertermswasincludedinthissurvey.theuseoftheterm‘corporateresponsibility/Cr’inthisdocumentshouldthereforebetakentoalsocovertheterm‘sustainability’andothersimilarterms.
N100researchthefirstpartofthisreportassessesCrreportingamongthe100largestcompaniesin41countries:4,100companiesintotal.thesearereferredto asthe“n100”companies.KPMGmemberfirmsidentifiedthen100intheircountrybyrevenuebasedonarecognizednationalsourceor,wherearankingwasnotavailableorwasincomplete,bymarketcapitalizationor othersector-appropriatemeasures.
n100companiesincludebothpublicly-listed companiesandthosewithdifferentownershipstructuressuchasprivately-ownedandstate-ownedbusinesses.ninenewcountriesjoinedthesurveythisyear(seechartbelow),whiletwocountriesincludedin2011arenotpartofthe2013survey(BulgariaandUkraine).
KPMGanalystscollecteddataonthefollowingcriteriaforthen100:
• numberofcompaniespublishingCrinformationinstand-alonereportsandannualreportsbycountryandsector
• formatandintegrationofCR reporting
• useofreportingguidelinesandstandards
• rateandtypeofverificationofCrinformation,assuranceprovideranddatarestatements.
thecountriesincludedinthe2013researchwere:
Americas AsiaPacific Europe MiddleEast& Africa
Brazil australia Belgium Poland angola
Canada China(incl.HongKong) Denmark Portugal Israel
Chile India Finland romania nigeria
Colombia Indonesia France russia Southafrica
Mexico Japan Germany Slovakia Uae
US Kazakhstan Greece Spain
Malaysia Hungary Sweden
newZealand Italy Switzerland
Singapore netherlands UK
SouthKorea norway
taiwanPeople, planet, profit
Corporate responsibility & sustainability New countries added to the survey in 2013
Source: KPMG International, The KPMG Survey of Source:KPMGInternational,TheKPMGSurveyofCorporate Responsibility Reporting 2013, December 2013 CorporateResponsibilityReporting2013,December2013
©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated. theKPMGSurveyofCorporateresponsibilityreporting2013 6
Figure2: Figure3:G250companiesbylocationof G250companiesbyindustrysector(%)headquarters(%)
13
27
6
8
128
5
3
3
3
2
2 2
2 2
211 1 11
13
25
7 117
6
6
5
4
4 3
3 2 2 2
USA Other: Finance,insurance Construction&building
Japan Malaysia &securities materialsChina Austria Oil&gas Food&beverageFrance Thailand Trade&retail PharmaceuticalsGermany Finland Automotive OtherservicesUK Norway Electronics&computers MiningSwitzerland SaudiArabia Communications&media TransportItaly Taiwan Utilities Chemicals&syntheticsSpain Singapore Metals,engineering&
Turkey manufacturing
SouthKorea
Netherlands
Canada
Australia Denmark Companiesincludedunder‘otherservices’include
Brazil Luxembourg entertainment,healthcare,resorts,mail,packageandfreightdelivery.ThenumberofcompaniesineachofthesesectorsIndia Swedenrepresentlessthan1percentoftheG250.Russia Venezuela
MexicoSource:KPMGInternational,TheKPMGSurveyofCorporateResponsibilityReporting2013,December2013Source: KPMG International, The KPMG Survey of
Corporate Responsibility Reporting 2013, December 2013
7©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclient
theKPMGSurveyofCorporateresponsibilityreporting2013 servicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated.
G250researchthesecondpartofthissurveyassessesthequalityofreportingamongtheworld’slargest250globalcompanies.
thesewereidentifiedasthetop250 companieslistedintheFortuneGlobal500rankingfor2012.Inthissurveytheyarereferredtoas“the G250”companies.theyoperatein 14 industrysectorsandarehead-quarteredin30differentcountries.
KPMGanalystssoughttoassessthequalityofCrreportingbytheG250againstsevenkeycriteria,whicharebasedoncurrentreportingguidelinesandKPMGprofessionals’viewofleadingreportingpractices.
• Strategy,riskandopportunity–reportingshouldincludeaclearassessmentoftheCrrisksandopportunitiesabusinessfacesandshouldexplaintheactionsitistakinginresponse.
•Materiality–CrreportsshoulddemonstratethatacompanyhasidentifiedtheCrissueswiththegreatestpotentialimpactsbothonthebusinessitselfanditsstakeholders.Companiesshouldmakecleartheprocesstheyhaveusedtoassessmateriality,howtheyhaveinvolvedstakeholdersinthisprocess,andhowtheyhaveusedthematerialityassessmenttoinform
theirreportingandmanagementofCrrisksandopportunities.
• Targetsandindicators–companiesshouldusemeaningful(e.g.timeboundandmeasurable)targetsandkeyperformanceindicatorstomeasureprogress,andclearlyreporttheirprogressandperformanceonsettargetsandobjectives.
• Suppliersandthevaluechain–Crreportsshouldexplainthesocialandenvironmentalimpactsofthecompany’ssupplychain,aswellasthedownstreamimpactofproductsandservices,andshowhowthecompanyismanagingthoseimpacts.
• Stakeholderengagement– companiesshouldidentifystakeholdersintheirCrreports,explaintheprocessusedtoengagewithstakeholders,andtheactionstakeninresponsetotheirfeedback.
• GovernanceofCR–reportsshouldmakeclearhowCrisgovernedwithinacompany,whohasresponsibilityforthecompany’sCrperformanceandhowthecompanylinksCrperformancetoremuneration.
• Transparencyandbalance– Crreportsshouldbebalancedandincludeinformationonchallengesandsetbacksaswellasachievements.
onthebasisofKPMG’sanalysis,scoreswereattributedtoeachoftheG250companiestoreflecthowwelltheirCrreportssatisfiedthecriterialistedabove.answersforthecriteriawereweightedtoproduceanoverallscoreoutof100,withgreatestweightgiventostrategy,riskandopportunity,materiality,targetsandindicatorsandstakeholderengagement,toreflecttherelativeimportanceofthesecriteriainachievinghigh-qualityreports.
asaresult,aclusterof10leadingcompanieswasidentified(eachofwhichscored90outof100,ormore)aswellasthehighestscoringcompanyineachofthe14industrysectorsrepresentedintheG250.
Seniorexecutivesfrom14ofthesetop-scoringcompanieswereinterviewedtodiscovermoreabouthowtheyapproachCrreporting.thelessonslearnedareoutlinedonpage39ofthissurvey.
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theKPMGSurveyofCorporateresponsibilityreporting20139 theKPMGSurveyofCorporateresponsibilityreporting20139©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated.
Corporateresponsibilityreporting:isitreallyworthit?
letusbehonest,corporateresponsibility(Cr)reportingisnotwithoutitscritics.
Somepeoplesaythesereportsareawasteoftimeandmoney,believingthemtobesodenseandsodullthatnoonecouldpossiblybothertoreadthem.othersseethemasvehiclesforcorporategreenwash,anopportunityforcompaniestoexaggeratetheirsocialandenvironmentalcredentialswithoutanygenuineintentiontochange.
Someinthecorporateworldseetheproductionofthesereportsastoocomplexandtoocostlyandwithdubiousreturn-on-investment.
WhileIunderstandtheconcernsbehindaccusationslikethese,Ithinksuchviewsarefortunatelyfastbecomingoutdated.
Yes,Crreportsareoftennotaneasyreadandcompaniesshouldseektocommunicatetheinformationinmoredigestibleandengagingways.However,thatisnotanargumentfornotreportingatall.
Yes,greenwashcanbeariskbutastimegoeson,stakeholders-fromnGosandpressuregroupstocustomersandinvestors-areallbecomingmoreadeptatknowingthedifferencebetweenPrspinandCrperformance.Itisnotsoeasytopulltheproverbialwooloverpeople’seyesanymore.
Yes,Crreportingdoneproperlydoesrequirefinancialandhumanresources,butsodoallformsofcorporatereporting.
thepointthatisbeingmissedbymanypeoplewhomakethesecriticismsisthat,inthe21stcentury,Crreportingis–orshouldbe-anessentialbusinessmanagementtool.Itisnot–orshouldnotbe-somethingproducedsimplytomollifypotentialcriticsandpolishthecorporatehalo.
Weareallliving,andsomeofusarerunningbusinesses,inaworldundergoingunprecedentedenvironmentalandsocialchanges.rampantpopulationgrowthisfuellingever-increasingdemandsforlimitedresources.Unpredictableextremeweatherisaffectingsuppliesofkeycommodities.Changingsocialconditionsandexpectationsaredrivingbothincreasedspendingpowerandsocialunrest.
Crreportingisthemeansbywhichabusinesscanunderstandbothitsexposuretotherisksofthesechangesanditspotentialtoprofitfromthenewcommercialopportunities.Crreportingistheprocessbywhichacompanycangatherandanalyzethedataitneedstocreatelongtermvalueandresiliencetoenvironmentalandsocialchange.Crreportingisessentialtoconvinceinvestorsthatyourbusinesshasafuturebeyondthenextquarterorthenextyear.
Whatencouragesmemostaboutthefindingsofthisyear’sKPMGSurveyofCorporateresponsibilityreportingarethesignsthatmanyoftheworld’slargestcompaniesareusingtheprocessofCrreportingtobringCrandsustainabilityrighttotheheartoftheirbusinessstrategy,whereitbelongs.
almostalltheworld’slargest250companiesreportonCr.ofthosethatdo,ninein10usetheirreportstoidentifyenvironmentalandsocialchangesthatimpactthebusinessanditsstakeholders.eightin10reportthattheyhaveastrategytomanagetherisksandopportunities.Sevenin10reportthatthesechangesbringopportunitiesfortheinnovationofnewproductsandservices.anenlightened,butIsuspectgrowing,minorityofaroundonethirdalsoreportopportunitiestogrowtheirmarketshareandcutcosts.
Wherethesecompanieslead,otherswillfollow.thedirectionoftravelisclear.
IbelievethatthedebateonwhethercompaniesshouldreportonCrornotisdeadandburied.asthissurveyfinds,Crreportingappearstobestandardbusinesspracticetheworldover-eveninthosegeographicregionsandindustrysectorsthatonlytwoyearsagolaggedbehind.
thequestionscompaniesshouldaskthemselvesnow,andwhichwehaveendeavoredtoanswerinthispublication,are“whatshouldwereporton?”and“howshouldwereportit?”.and,mostimportantly,“howcanwebestusetheprocessofreportingtogeneratemaximumvaluebothforourshareholdersandforourotherstakeholders?”.
YvodeBoerKPMG’sGlobalChairman,ClimateChange&SustainabilityServices
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Keyfindings
GlobaltrendsinCr reportingCRreportingseesexceptionalgrowthinemergingeconomies• Therehasbeenadramaticincreasein
CrreportingratesinasiaPacificoverthelasttwoyears.almostthreequarters(71percent)ofcompaniesbasedinasiaPacificnowpublishCrreports–anincreaseof22percentagepointssince2011whenlessthanhalf(49percent)didso.
• TheAmericashasnow overtakeneuropeastheleadingCrreportingregion,largelyduetoanincreaseinCrreportinginlatinamerica.Seventysix percentofcompaniesintheamericasnowreportonCr,73 percentineuropeand71percent inasiaPacific.
KPMGvIeW
• ThehighestgrowthinCRreportingsince2011hasbeenseenin:India(+53percentagepoints),Chile(+46),Singapore(+37),australia(+25),taiwan(+19)andChina(+16).
• CRreportingisnow undeniablyamainstreambusinesspracticeworldwide,undertakenbyalmostthreequarters(71percent)ofthe4,100companiessurveyedin2013.thisglobalCrreportingrateisanincreaseof7percentagepointssince2011whenlessthantwothirds(64 percent)ofthecompaniessurveyedissuedCrreports.
• Amongtheworld’slargest250companies,theCrreportingrateismoreorlessstableat93percent.
Toreportornottoreport?ThedebateisoverCompaniesshouldnolongeraskwhetherornottheyshouldpublishaCrreport.Webelievethatdebateisover.thehighratesofCrreportinginallregionssuggestitisnowstandardbusinesspracticeworldwide.theleadersofn100orG250companiesthatstilldonotpublishCrreportsshouldaskthemselveswhetheritbenefitsthemtocontinueswimmingagainstthetideorwhetheritputsthematrisk.
theimportantquestionsnoware“what?”and“how?”–or,inotherwords,it isnowaboutthequalityofCrreportingandthebestmeanstoreachrelevantaudiences.thisincludesassessingwhatismaterialforthebusiness,properengagementwithstakeholders,havinganhonestcommunicationstrategyincludingopennessaboutchallengesandputtinginplacetheunderlyingprocessestogatherandcheckdata.
Anarrowinggapbetweenleadingandlaggingindustrysectors
• InallsectorsmorethanhalfofcompaniesreportonCr,meaningreportingcanbeconsideredstandardglobalpracticeirrespectiveofindustry.twoyearsagolessthanhalfofthesectorshadreportingratesabove50percent.atthesametime,thegapbetweenthehighestscoringandlowestscoringsectorhasnownarrowedto22percentagepoints.
• Somesectorshave takenbigstepsoverthepastyears.theautomotiveandtelecommunications&mediasectorsnowhavesomeofthehighestlevelsofCrreporting(77 percentand75percent,respectively),whereasfiveyearsago,in2008,theirCrreportingrateswereamongthelowest(49percentand47 percent).
CRinformationintheannualreport:nowstandardpractice• Overhalfofreportingcompanies
worldwide(51percent)nowincludeCrinformationintheirannualfinancialreports.thisisastrikingrisesince2011(whenonly20percentdidso)and2008(only9percent).thedirectionoftravelisclearandwithmorethanhalfofcompaniesresearchednowincludingCrdataintheirfinancialreports,thiscanarguablybeconsideredasstandardglobalpractice.
11©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclient
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• However, includingCRinformationintheannualreportdoesnotimplythatcompanieshaveembracedthetrendofintegratedreporting(Ir):onlyonein10companiesthatreportonCrclaimstopublishanintegratedreport.
UseofGlobalReportingInitiative(GRI)guidelinesisalmostuniversal• Seventyeight percentofreporting
companiesworldwiderefertotheGrIreportingguidelinesintheirCrreports,ariseof9percentagepointssincethe2011survey(over90percentdosoinSouthKorea,Southafrica,Portugal,Chile,BrazilandSweden).
• Amongtheworld’s250largestcompaniestherateisevenhigherthanthen100:82percentofG250companiesthatreportonCrrefertotheGrIguidelinesasopposedto78percentin2011.
Assuranceamongthelargestcompanieshasreachedatippingpoint• Overhalf(59percent)oftheG250
companiesthatreportCrdatanowinvestinexternalassurance.thisisupfrom46percentin2011.
• Two thirdsofthosecompaniesthatinvestinassurancechoosetoengageamajoraccountancyfirm.
KPMGvIeW
Boardsshouldgetbehindintegratedreporting(IR)Basedonmemberfirms’experiencesandresearchthereseemstobeacceptanceofIrasthenextdestinationforcorporatereporting,butfewcompaniesaredoingityet.thereisalsosomenervousnessaroundwhetherIrcouldlimitratherthanenhancecommunicationaroundCrandsustainability,specificallyfornon-financialstakeholdergroups.
Ircanbethecatalystforintegratedmanagement.KPMG’sexperienceinSouthafrica,whereIrisnowmandatory,showsthatthecloseinvolvementofCeosandotherboardmembersisessentialtoreach‘oneview’ofthebusiness,consensusononesetofmaterialissuesandonecombinedbusinessstrategy.Withanintegratedapproachtovaluecreationastheendobjective,boardsupportforIrneedstoscaleup.
KPMGvIeW
AssuranceisnolongerjustanoptionJustasCrreportingitselfisnowastandardbusinesspractice;itisalsobecomingstandardpracticetohaveCrandsustainabilitydataexternallyassured.thetippingpointhasbeencrossed,withoverhalftheworld’slargestcompanies(G250)nowinvestinginassurance.ascanbeseenwithothertrendsinCrreporting,thelargestcompaniestendtosetthedirectionthatothercorporationsfollow.
Manycompaniesnowfacesignificantpressuretogivestakeholdersconfidenceinwhattheysayandassurancecanhelpprovidethiscredibility.thequestionforleadersisthereforenolonger“shouldweassureourCrdata?”rather“whywouldwenot?”and“howdowechoosetheappropriateassuranceoptionthatmeetsstakeholders’needsandputsusaheadofourpeers?”.
©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated. theKPMGSurveyofCorporateresponsibilityreporting2013 12
thequalityofreportingamongtheworld’slargestcompanies
Attentionmustbepaidtoreporting Table1:10G250companiesscoremorethan90outof100forCRreportingquality:onthevaluechain
• InKPMG’sanalysis,theaveragequalityscoreachievedbyG250companiesfortheirCrreportsis59outofapossible100.thisindicates
Company
a.P.MøllerMærsk
Country
Denmark
Sector
transport
significantroomforimprovement BMW Germany automotiveoverall.
CiscoSystems US telecommunications&media
• Reportingontargetsandindicatorsis FordMotorCompany US automotive
mostwell-developedtodate,withanaveragescoreof68outof100.
Hewlett-Packard US electronics&computers
large companiesalsoappeartobe InG netherlands Finance,insurance&securities
reportingonmaterialityandstrategy, nestlé Switzerland Food&beverageatanaveragescoreof66and62.
repsol Spain oil&gas
• Akey areafor improvementisreportingonsuppliersandthevaluechain,whereaverageG250reportingqualitywasassessedat46outof100,followedcloselybystakeholderengagementandgovernance,bothat anaveragescoreof53outof100.
Europeancompaniesserveasanexampleforotherregions• AroundonequarteroftheG250
(63 companies)scorehigherthan80 outof100acrossthequalitycriteria,and10companiesscorehigherthan90.thesecompaniesarelocatedineuropeandtheUS.
• EuropeanG250companiesachievethehighestaveragequalityscorefortheirCrreportsat71outof100.this compareswithaveragescoresof54forcompaniesintheamericasand50inasiaPacific.
• WithinEurope,companiesinItaly(85),Spain(79)andtheUK(76)scoremosthighly.
Siemens Germany electronics&computers
total France oil&gas
Source:KPMGInternational,TheKPMGSurveyofCorporateResponsibilityReporting2013,December2013
IndustrieswithhighCRimpactsshowtrailingscores• Largecompaniesintheelectronics
& computers,miningandpharmaceuticalssectorsproducethehighestqualityCrreports.theiraveragescoresare75,70and70 respectively.
• However somesectorsthatfacesignificantCrrisksandopportunities,andhavesignificantpotentialsocialandenvironmentalimpacts,arepublishingreportswithscoresbelowtheglobalaverage.theoil&gas,trade&retail,metals,engineering&manufacturingandconstruction&buildingmaterialssectorshaveaveragescoresof55,55,48and46outof100,respectively.
Opportunitiesovertakerisks• MostG250CRreports(87percent)
identifyatleastsomesocialandenvironmentalchanges(or‘megaforces’)thataffectthebusiness.Climatechange,materialresourcescarcityandenergyandfuelarethemostcommonlymentioned.
• Morecompaniesseeopportunitiesthanrisks:81percentofreportingcompaniesidentifybusinessrisksfromsocialandenvironmentalfactors,whereasslightlymore(87 percent)identifycommercialopportunities.
• Themostcommonlycitedopportunityofsocialandenviron-mentalchangeisinnovationofnew
13©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclient
theKPMGSurveyofCorporateresponsibilityreporting2013 servicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated.
productsandservices,mentionedby72percentofreportingG250companies.theopportunitytostrengthenbrandsandcorporatereputationisthenextmostcommonlycited(mentionedby51percentofreportingcompanies),followedbyimprovingmarketposition/growingmarketshare(36percent)andcuttingcosts(30percent).
• Onlyonein10 reportingcompanies(12percent)identifiesimprovedaccesstocapitalorimprovedshareholdervalueasanopportunityofsocialandenvironmentalchange.
• Reputationalriskisthemostcommonlycitedtypeofbusinessrisk,mentionedby53percentofreportingG250companies.
• OnlyasmallnumberofG250Crreports(5percent)includeinformationonthefinancialvalueatstakethroughenvironmentalandsocialrisk.
• Asignificantnumberofreportingcompaniesalsomentionothertypesofriskthataffectcompanyoperationsandnotjustcorporatereputations:
KPMGvIeW
RiskandopportunityneedstobelinkedtovalueManycompaniesnolongerseecorporateresponsibilityasamoralissue,butascorebusinessrisksandopportunities.Moreandmoreinvestorsacceptthatenvironmentalandsocialfactorsputcompanyvalueatstake.thisleadstothequestionofwhatthepotentialfinancialimpactsofthoserisksandopportunitiescouldbeandwhatthecompanyisdoingtomitigateormaximizethem.
veryfewcompaniesareyetdeclaringanyquantifiedriskstothebottomlineintheirCrreporting.Companiesneedtobepreparedforthistochangeandshouldstarttointegratethetopandbottom-lineimplicationsintheirbusinessscenarioplanningandriskmanagement.
regulatoryrisk(48percent), • Mostreportingcompaniesinthecompetitiverisk(45percent),physical G250(83percent)stateintheirrisk(38percent),socialrisks(36 reportsthattheyhaveaCrstrategy.percent)andlegalrisks(21percent).1 Companiesintheamericasaremost
likelynottorefertostrategy:threein• TheAmericasistheonlyregion 10donot.
wherecompetitiveandregulatoryrisksarementionedmoreofteninG250Crreportsthanreputationalrisks.
1Seepage48foradefinitionofdifferenttypesofrisks
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thequalityofreportingamongtheworld’slargestcompanies
Figure4:AveragequalityofG250reportsbysector(Scoreoutofapossible100)
• Largecompaniesintheelectronics&computers,miningandpharmaceuticalssectorsproducethehighestqualityCr reports.
Electronics & computers Mining
Pharmaceuticals Utilities
Communications & media Transport
Automotive Food & beverage
Finance, insurance & securities Chemicals & synthetics
Oil & gas Trade & retail
Metals, engineering & manufacturing Construction & building materials
75 70 70 65 65 64 64 59 58 58 55 55 48 46
Source: KPMG International, The KPMG Survey of Corporate Responsibility Reporting 2013, December 2013
15©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclient
theKPMGSurveyofCorporateresponsibilityreporting2013 servicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated.
Figure5:AveragequalityofG250reportsbycountry2
(Scoreoutofapossible100)
•LargecompaniesinItaly,SpainandtheUKleadtheworldforthequalityofCr reports.•EuropeanG250companiesachievethehighestaverage
qualityscorefortheirCrreportsat68outof100.thiscompareswithaveragescoresof51forcompaniesintheamericasand48inasiaPacific.
85 79 76 70 70 69 68 63 60 55 54 39
Italy Spain
UK France
Australia Netherlands
Germany Switzerland
South Korea Japan
USA China/Hong Kong
Source: KPMG International, The KPMG Survey of Corporate Responsibility Reporting 2013, December 2013
Figure6:AveragequalityofG250reportsbycriterion(Scoreoutofapossible100)
•G250companiesasawholescoremosthighlyfor targetsandindicators.thegreatestimprovementneedstobemadeinreportingonsuppliersandthevaluechain.
Source:KPMGInternational,TheKPMGSurveyofCorporateResponsibilityReporting2013,December2013
Targets and indicators Materiality
Strategy, risk and opportunity Transparency and balance
Governance Stakeholder engagement
Suppliers and the value chain
68 66 62 58 53 53 46
2averagescorespercountryareonlygivenforthosecountriesthathavefiveormorecompaniesreportingonCrintheG250.
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Moretransparencyneededonmaterialityprocess• Overthreequarters(79percent)of
G250companiesthatissueCrreports,discusstheidentificationofCrissuesthatarematerialtotheirbusinessandstakeholders.
• Thereisroomfor improvementintermsoftransparencyontheprocessusedforidentifyingmaterialissues.41percentofthereportingcompaniesdonotexplaintheprocesstheyuseandonlyasmallminority(5percent)assessmaterialissuesonanongoingbasis.
Targetsandindicatorsarenotyetfullydefined• OneineightreportingG250
companies(13percent)reportsnoCrtargetsatallandaquarter(26percent)donotrelatetheirCrtargetstomaterialissues.
Reportingonsuppliersandthevaluechainislackinginsectorsatrisk• Companiesinthechemicals&
syntheticssectoraretheleastlikelytoreportonsupplychainissues.Sixty percentofG250companiesinthissectorthatreportonCrdonotreportonthesupplychain.Companiesintheelectronics&computerssectorarethemostlikelytodoso.
• G250companiesinEuropearethemostlikelytodiscussindetailtheenvironmentalandsocialimpactsoftheirproductsandservices.almostthreequarters(73percent)ofreportingcompaniesineuropedosowithafurther23percentprovidinglimitedinformation.Intheamericas,lessthanhalf(49percent)providedetailedinformationondownstreamimpactsandthefiguredropstolessthanonethird(32percent)inasiaPacific.
CompaniesintheAmericasandAsiaPacificstruggletoexplainstakeholderengagementprocess• G250companiesinAsiaPacificand
theamericaslagbehindthoseineuropeforexplainingtheprocessusedtoengagestakeholders.Fourin10companiesintheseregionsoffernoexplanationatall.
• Theminingandmetals,engineering&manufacturingsectorsscorehighestforidentifyingkeystakeholdersintheirreports.
• OnlyonethirdofG250companies(31 percent)includestakeholdercommentsintheirCrreports.
17©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclient
theKPMGSurveyofCorporateresponsibilityreporting2013 servicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated.
KPMGvIeW
Supplychainreportingneedsmorefocusthissurveyshowsthatsomesectorswithcomplexsupplychains,carryingpotentiallycatastrophicenvironmentalandsocialrisks,havelowlevelsofreportingonsupplychainissues.
recentincidentsincludingoilspillsandfactorydisastersshouldremindbusinessleadershowimportantitistomanagetheenvironmentalandsocialimpactsofthesupplychain.
Putsimply,ifcompaniesdon’tstartmanagingtheseissuestheywon’thavealicensetooperateintheglobalized21stcenturyworld.Companiesurgentlyneedtobuildconfidenceamongcustomers,communities,investorsandotherstakeholdersthattheirsupplychainsarebeingproperlymanaged.transparentcorporateresponsibilityreportingisaneffectivewaytobuildsuchconfidence.
FewlargecompaniesyetlinkCR Transparencyandbalanceislimitedperformancetoremuneration formostcompanies• Aroundonequarterofcompanies • Onlyoneinfive G250companies
(24 percent)reportthatthecompany (23 percent)publishesawell-Boardhasultimateresponsibility balancedreportthatdiscussesforCr. Crchallengesandsetbacksaswell
assuccesses.Companiesinthefood• Inmost G250 companies (61 percent) &beverage,pharmaceuticals,and
Crismanagedonaday-to-daybasisby electronics&computerssectorsareadedicatedCrorsustainabilityunit. mostlikelytodoso.
• Onlyonein10 G250companies(10percent)reportsaclearlinkbetweenCrperformanceandexecutiveoremployeeremuneration.
©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated. theKPMGSurveyofCorporateresponsibilityreporting2013 18
Global trends in CR reporting: a viewacross 41 countries
© 2013 KPMG International Cooperative (“KPMG International”). KPMG International provides no client the KPMG Survey of Corporate responsibility reporting 2013 services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 19
Part 1 © 2013 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. the KPMG Survey of Corporate responsibility reporting 2013 20
SincethelastKPMGSurveyofCorporateresponsibilityreportingin2011,therehavebeentwoyearsofdebateinthebusinessworldontheform,scopeandcontentofCr reporting.
Muchofthisdiscussionhasbeeninfluencedbythreeimportantdevelopmentsinthefield.Firstly,the publicationinMay2013oftheGrIG4 Guidelines3forreporting.Secondly,thespreadofmandatoryCrreportingrequirementsincountriesfromIndiatotheUK.4andthirdly,momentumtowardsintegratingnon-financialandfinancialinformationinreportingandtheworkoftheInternationalIntegratedreportingCouncil(IIrC).researchforthissurveyexploredtheimpactofthesechangessince2011,assessingreportingamongthen100–the100largestcompaniesin41countries.
theresearchpresentsapictureofCrreportingasatrulymainstreamglobalbusinesspractice,theimportanceofwhichisrecognizedbycompaniesandregulatorsalike.reportingratesare
nowhighacrossallregionsandindustrysectors.Countriesthatpreviouslylaggedbehindarecatchinguporevenovertakingtheearlypioneersintermsofthequantityofcompaniesreporting.
thistrendisreplicatedattheregionallevel,wheretheamericashasover-takeneuropeastheregionwiththehighestreportingrate.
regulationisanincreasinglyimportantdriverofgrowthinCrreporting,butframeworkssuchastheGrIandvoluntaryguidancefromregulatorsandstockexchangesarealsodrivingupreportingrates.alongsidetheoverallgrowthinreporting,integrationoffinancialandnon-financialinformationisincreasing.
• TheN100 globalaveragereportingratehasincreasedfrom64percentin2011to71percentin2013.
• TheAmericasovertookEuropeastheleadingreportingregion.AsiaPacificsawthemostsignificantincreaseduetoajumpinCrreportingratesincountriessuchasIndia,Singaporeandaustralia,andnewcountrieswithhighreportingratesjoiningthesurvey.
• RatesremainedstaticinEuropeanddroppedintheMiddleEast&Africa,largelyduetoanumberofcountrieswithlowreportingratesjoiningthesurveyforthefirsttime.
Keyfindings:
3 theGlobalreportingInitiative’sG4GuidelineswerepublishedinMay2013,availableat:globalreporting.org/reporting/g4/4 KPMG,UnitednationsenvironmentProgramme,GlobalreportingInitiativeandUnitforCorporateGovernanceinafrica,CarrotsandSticks,
Sustainabilityreportingpoliciesworldwide,2013.
21©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclient
theKPMGSurveyofCorporateresponsibilityreporting2013 servicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated.
Crreportingrates:asiaPacificseesstrongestgrowth
Crreportingisnowundeniablyamainstreamglobalbusinesspractice–withalmostthreequarters(71percent)ofthen100companiessurveyedpublishingareport,comparedwith64 percentofcompaniesresearchedin2011.thereportingratefortheG250remainedrelativelystablein2013comparedwith2011,withaminimaldecreasefrom95percentto93percentduetothechangingcompositionofthe250eligiblecompanies.
then100growthtrendismostevidentintwooftheregionsstudied,withtheamericasovertakingeuropeastheleadingreportingregionandasiaPacificalmostcatchingupwitheurope.
asiaPacificsawthebiggestoverallincreasefrom49percentin2011to71 percentin2013.thisispartlyduetonewcountriesbeingincludedinthesurvey,suchasIndonesiaandMalaysia,whichbothdemonstratehighreportingrates.However,themajorityoftheincreaseisduetoexceptionallyhighgrowthratesinseveralcountries.
Figure7:Growthinreportingsince1993PercentageofcompanieswithCrreports
%
For example,inIndiatheCrreportingrateincreasedto73percentin2013from20percentin2011,inSingaporetherateincreasedto80percentfrom43 percent,andinaustraliatherateincreasedto82percentfrom57 percent.InthecaseofIndiaandSingaporeitislikelythatmuchofthisgrowthisduetotheintroductionofnewmandatoryandvoluntaryreportingrequirements(seepage23).InaustraliatheincreaseisduetoanumberofcompaniesreportingonCrforthefirsttimein2013,primarilyinthecompanyannualreport.
Intheamericas,theCrreportingrateincreasedfrom69percentin2011to76 percentin2013,largelyduetothechangesinthenumberofcompaniesreportingonCrinlatinamerica.DespitetherateofCrreportingremainingrelativelystableintheUSandCanadaandthenumberofreportingcompaniesinBrazilandMexicodropping,theoverallrateintheregionincreased.
Figure8:
“therehasbeenasurgeinCrreportinginMalaysiawhichIseeasatippingpointinmakingCrstandardbusinesspracticehere,encouragedbytheMalaysianStockexchange’srequirementthatlistedcompaniesreportonCractivities.atthesametime,IthinkmanyMalaysiancompaniesarelessexperiencedinCrthancompaniesineuropeandtheamericas.Forthisreason,manyCrreportsarestilllimitedinscopewithafocusonphilanthropicandcommunityinvestments.However, justasthequantityofreportsisincreasingrapidly,soIexpecttoseerapidprogressinthequalityandsophisticationofreportingprocessesandcontent.”
DatukHewLeeLamSang,Partner,KPMGinMalaysia
CRreportingbyregionPercentageofcompanieswithCrreports
% 100 100
1993 1996 1999 2002 2005 2008 2011 2013
93
71
95
64
83
53
64
4145
2835
2418
12
8080
6060
4040
2020
00Americas Asia Pacific Europe Middle East
& Africa
7671 7173
6154
69
49
Base: 4,100 N100 companies Base N100/G250 companies 2011 N100 Source: KPMG International, The KPMG Survey of Source: KPMG International, The KPMG Survey of 2013 Corporate Responsibility Reporting 2013, December 2013 G250 Corporate Responsibility Reporting 2013, December 2013
From1993to2002thesurveyincludedonlystandaloneCRreports.From2005onwardsthesurveyincludesCRinformationinannualreportsaswellasseparateCRreportshardcopyorweb-based,duetothetrendofmore theKPMGSurveyofCorporateresponsibilityreporting2013companiesreportingonCRincompanyannualreports. ©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclient
servicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated.
22
80
100%
Figure 9: Reporting rates by country
Keyfindings:
•Regulatoryrequirementshave drivenreportingtoitshighestlevelsinFrance,DenmarkandSouthafrica.
•Thehighestgrowthratessince2011 wereseeninIndia,Chile,Singapore,australia,taiwan,romania,China(incl.HongKong)andnigeria.
•ReportingratesalsofellnoticeablyinMexico,Brazil,Spain,Slovakia,FinlandandtheUK.
60
40
20
0
Fran
ce
Den
mar
k
Sou
th A
fric
a
Mal
aysi
a
Japa
n
Indo
nesi
a
UK
USA
Can
ada
Nig
eria
Net
herla
nds
Aus
tral
ia
Spa
in
Finl
and
Sin
gapo
re
Swed
en
Hun
gary
Bra
zil
Ital
y
Col
ombi
a
Chi
na (i
ncl.
Hon
g Ko
ng)
Nor
way
Indi
a
Chi
le
Port
ugal
Rom
ania
Bel
gium
Switz
erla
nd
Ger
man
y
Slo
vaki
a
Rus
sia
Taiw
an
Pola
nd
Mex
ico
Ang
ola
Sou
th K
orea
New
Zea
land
*
Gre
ece
Kaz
akhs
tan
UA
E
Isra
el
2011
2013 * 2011 reporting rate restated for New Zealand.
reportinginChileincreasedsubstantiallyfrom27percentin2011to73percentin2013,duepartlytomanycompaniesreportingonCrforthefirsttimeandanumberofnewcompaniescomingintotheChileann100list.theadditionofColombiatothesurvey,withareportingrateof77percent,addedtotheoverallincreaseintheamericas.
thereportingrateineuropeincreasedonlyslightly,partlyduetolowerthanaveragereportingratesinsomeofthecountriesthatwereincludedinthesurveyforthefirsttimethisyear(e.g.Poland).theMiddleeast&africa(Mea)wastheonlyregiontoseeadropinCrreportingrates:from61percentin2011to54percentin2013.thiswasdespiteahighrateofreportinginSouthafrica(98 percent)whichisconsistentwith2011,andanincreaseinthereportingrateinnigeriato82percentfrom68percent,largelyduetonewregulations(seeoppositepage).theoveralldeclineintheMeareportingrateisduetoanumberofcountrieswithlowerthanaveragereportingrates,suchasUaeandangola,joiningthesurveyforthefirsttimethisyear.
“reportinginChinahascontinuedtogrowwiththreequartersofcompaniesresearchedthisyearproducingCrreports,comparedwith59percentin2011.reportingrequirementsfromtheShanghaiStockexchangeandCrguidelinesforstate-ownedenterpriseshavebeeninplacesince2008.It’slikelyrecentgrowthreflectsthegreaterexpectationsinthemarketplaceregardingCr.reportingisapracticalwaytoshowresponsiveness,andcompaniesalsowanttoavoidbeingleftbehindthosewhohavealreadyissuedreports.”
SeanGilbert,Director,KPMGinChina
Base: 4,100 N100 companies Source: KPMG International, The KPMG Survey of Corporate Responsibility Reporting 2013, December 2013
“CrisgaininggreaterprominenceamonglargecompaniesinChileastheyincreasinglyunderstandthebenefitsofincorporatingCrintothebusinessandreportingonthis.High-profileprojectsintheminingandenergysectorshavebeendelayedinrecentyearsduetosocialpressureandconcernsabouttheimpactoncommunitiesandtheenvironment,demonstratingthatcompaniesmustaddressCrissuestocontinuetooperate.ChileancompaniesarealsoimplementingCrpoliciesandreportingontheiractivitiestoensuretheyremaincompetitivewithforeignmultinationalsandareinagoodpositiontomeetgovernmentregulations.”
LuisFelipeEncina,Partner,KPMGinChile
2323 ©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclienttheKPMGSurveyofCorporateresponsibilityreporting2013 servicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated.
regulationdrivesgrowthinCrreporting
Crreportinghastraditionallybeenvoluntary,however,governmentsandstockexchangesaroundtheworldareincreasinglyimposingmandatoryreportingrequirements.Crreportingregulationsareseeninseveralcountriesthathavealmost100percentreportingrates,includingFrance,DenmarkandSouthafrica.regulationisalsobehindasignificantincreaseinreportingratesintaiwan.
alongsidegovernmentregulation,newguidelinesandstandardsfromstockexchangesandotherorganizationsarealsohavinganimpact.Forexample,inSingapore,theintroductionoftheSingaporeStockexchange(SGX)SustainabilityreportingGuideforlistedcompaniesandarevisedCodeofCorporateGovernance(whichmakesconsiderationofsustainabilityissuespartoftheboard’sremit)hasinfluencedthe37percentagepointriseinreportingrates.
SimilarfactorsareinfluencingCrreportinginnigeria,whichhasoneofthehighestCrreportingrates(82percent)notonlyinafrica,butalsoglobally.the CentralBankofnigeria
issuedguidelinesin2012mandatingthatfinancialservicescompaniesestablishsustainabilityprocessesandreportonthem.Inaddition,theSecuritiesandexchangeCommissionof nigeriaupdatedtheCorporateGovernanceCodein2011torecommenddisclosureofsustainabilitypractices.
InIndia,wheremuchCrreportingisfocusedoncommunityinvestmentanddevelopment,thereportingrateisincreasingduetorecentregulatoryrequirements.thetop100listedcompaniesinIndiaarerequiredbytheSecuritiesexchangeBoardtoreportontheiradoptionofIndia’s‘nationalvoluntaryGuidelinesforSocial,environmentalandeconomicresponsibilitiesofBusiness’intheirannualreportingfromfinancialyear2012/13.thenewCompaniesact,whichwillimpactreportsfromfinancialyear2014/15,requiresallregisteredcompaniestoestablishaBoardCommitteeonCorporateSocialresponsibility,investatleast2percentofnetprofitsonsociallyresponsibleprojects,andexplaintheiractivitiesintheirannualreport.
Trendsinmandatoryandvoluntaryreportingpoliciesresearchreleasedin2013bytheGrIincollaborationwithKPMG,theUnitednationsenvironmentProgramme(UneP)andtheCentrefor
CorporateGovernanceinafrica,examinesmandatoryandvoluntaryreportingpoliciesin45countries.theresearchfoundthat:
• thereare134 separatemandatorypoliciescoveringdifferentaspectsofCrreportingandafurther53voluntarypolicies
•manypoliciesarebasedona‘reportorexplain’approach
•sustainabilityreportinghasbecomealistingrequirementonseveralstockexchangesinnon-oeCDcountries,includingBrazil,China(incl.HongKong),MalaysiaandSouthafrica.5
CRreportingdropsinsomecountriesCrreportingratesdroppedinsomecountriescomparedwith2011,despitetheoverallupwardtrend.thebiggestdropswereseeninMexicoandBrazil(10fewercompaniesreportinginboth)andtheUK(9fewercompaniesreporting).thesedecreasescanbeexplained,atleastinpart,bythechangingcompositionofthen100inthesecountriesfollowingtheglobalfinancialcrisis.InSpain,forexample,mergersandacquisitionsamongbigfirmsinthebankingsectorhaveresultedinsomesmallercompanies,whicharelesslikelytoissueCrreports,beingincludedintheSpanishn100.
“InDenmarkthebiggestcompaniesare requiredeithertoreportontheirCractivities,or,iftheydonot,toexplainintheirannualreportswhytheydonotdoso.From2014this‘reportorexplain’approachwillbeextendedwithrequirementsforcompaniestoreportonhumanrights,climatechangeandemployeediversity.WhilethereportingrateinDenmarkisveryhigh,manycompaniesstrugglewithreportingonCrastheyremainfocusedondisconnectedenvironmental,health,humanresourcesorphilanthropicinitiatives.thelegislationhasencouragedcompaniestodevelopamorestructuredapproachtoCrasitisincreasinglydifficulttoreportwithoutanunderlyingCrstrategyandclearmanagementapproach.”
ChristianHonoré,Partner,KPMGinDenmark
5 KPMG,UnitednationsenvironmentProgramme,GlobalreportingInitiativeandUnitforCorporateGovernanceinafrica,CarrotsandSticks,Sustainabilityreportingpoliciesworldwide,2013.
theKPMGSurveyofCorporateresponsibilityreporting2013 24©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated.
Figure 10:
Rateofcorporateresponsibilityreportingacross41countries-2011and2013 (%ofcompaniesreportingonCR)
Canada 79 83
Mexico 66 56
USA 83 86
Brazil 88 78
Chile 27 73
Colombia – 77 Angola – 50
Americas Israel 18 19 Nigeria 68 82 SouthAfrica 97 98 UAE – 22
2011 2013 MiddleEast&AfricaReporting rates in percentages
SpotlightonreportingrequirementsThefollowingcountrieshavehighCRreportingratesorsignificantrecentgrowthinCRreporting,relatedtoreportingrequirements:
Denmark France India Indonesia Japan Malaysia Nigeria FinancialStatements GrenelleIIActrequires Thetop100listed LawNo.40/2007 Mandatoryand MalaysiaStock CentralBankofNigeriaActrequireslarge largecompaniesto companiesinIndiaare requiresLimited voluntaryguidelines Exchangelisting requiresfinancialcompaniestoreport reportannuallyonCR requiredbythe LiabilityCompaniesto forcertaintypesof requirementthat servicescompaniestoonCRactivities,or,if activitiesandadvises SecuritiesExchange reportonCRinthe companiestoreport companiesdescribe reportonCRandthetheydonot,toexplain reportsaresubjectto Boardtoreporton annualreport.Publicly- onenvironmental CRactivitiesandlaw SecuritiesandExchangeintheirannualreports independent CRintheirannual listedcompaniesare impacts,including thatallpubliclylisted CommissionofNigeriawhynot. verification. reportingfromfinancial alsorequiredtoreport GHGemissions. companiespublish CorporateGovernance
year2012/13. onCRintheannual CRinformationinthe Coderecommendsreport. annualreport. companiesdisclose
CRpractices.
©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclienttheKPMGSurveyofCorporateresponsibilityreporting2013 servicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated.25
Belgium – 68 Poland – 56 Denmark 91 99 Portugal 69 71 Finland 85 81 Romania 54 69 France 94 99 Russia 58 57 Germany 62 67 Slovakia 63 57 Greece 33 43 Spain 88 81 Hungary 70 78 Sweden 72 79 Italy 74 77 Switzerland 64 67 Netherlands 82 82 UK 100 91 Norway – 73
Europe
Australia 57 82 China(incl.HongKong) 59 75 India 20 73 Indonesia – 95 Japan 99 98 Kazakhstan – 25 Malaysia – 98 NewZealand 43 47 Singapore 43 80 SouthKorea 48 49 Taiwan 37 56
AsiaPacificBase: 4,100 N100 companies Source: KPMG International, The KPMG Survey of Corporate Responsibility Reporting 2013, December 2013
Norway Singapore South Africa UK USA NorwegianAccounting SingaporeStockExchange KingCodeof Companieslistedonthe DisclosurerequirementsAct(andamendment (SGX)Sustainability GovernancePrinciples LondonStockExchange oftheU.S.Securities&in2013)requireslarge ReportingGuideforlisted andKingReporton mustreportonGHG ExchangeCommissioncompaniestoreport companiesandCodeof Governance(KingIII), emissionsfrom2013. (SEC),Dodd-FrankActonsocial,environ- CorporateGovernance andJohannesburg CompaniesActrequires requiresdisclosureonmentalananti- encourageCRreporting, StockExchange(JSE) largeandmediumsized conflictmineralsandcorruptionactivities. andEnergyConservation
Act2012requireslargecompaniestoreporton
requirecompaniestopublishanintegratedreportincludingCR
companiestodiscloseCRinformationrelevanttocompanyperformance
PresidentialExecutiveOrder13514requiresfederalagenciestoreport
Source: KPMG, United Nations Environment Programme, Global Reporting Initiative and Unit for Corporate Governance in Africa, Carrots and Sticks, Sustainability reporting
energyuse. performance. intheannualreport. onCRperformance. policies worldwide, 2013.
©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated. theKPMGSurveyofCorporateresponsibilityreporting2013 26
Trade
& re
tail
Chem
icals
&
synt
hetic
s
Constr
uctio
n &
build
ing m
ateria
ls
Trans
port
Pharm
aceu
ticals
Met
als, e
ngine
ering
&
man
ufac
turin
g
Finan
ce, in
suran
ce
& secu
rities
Food
& be
verag
e
Oil & ga
s
Comm
unica
tions
& med
ia
Electro
nics &
com
pute
rs
Fore
stry,
pulp
& pape
r
Autom
otive
Utilitie
s
Mini
ng
anarrowinggapbetweenleadingandlaggingsectors
Keyfindings:
•ThegapbetweenthesectorswiththehighestandlowestCrreportingrateshasnarrowedtojust22 percentagepoints,from32in2011and42in2008.
•Reportingrateshave changedonlyincrementallyinmostsectorssince2011,reflectingthematurityofreporting.
•Ninesectorsmoved fromhavingaminorityofcompaniesreportingin2008toamajorityin2013.
•Theautomotiveandtelecommunications&mediasectorsnowhavesomeofthehighestlevelsofCrreporting(77percentand75 percent).Fiveyearsago,theirCrreportingrateswereamongthelowest(49percentand47 percent).
Companiesoperatingin15differentsectorsareincludedinthissurvey.
reportingisnowthenormacrossallthesesectors,withatleast62percentofcompaniesineverysectorproducingareport.thereislittlechangesince2011inthetypesofindustriesthataremostorleastlikelytoreport.Heavyindustryandresource-basedsectorsstillleadthewaywiththehighestreportingrates,andservicesandtrade&retailstilllagbehind.However,thegapbetweenreportingratesamongtheleadersandlaggardsisnarrowing.
lookingbacktothe2008survey,ninesectorshavemovedfromhavingaminorityofcompaniesreportingfiveyearsagotoamajorityin2013:automotive,communications&media,construction&buildingmaterials,finance&insurance,food&beverage,metals,engineering&manufacturing,pharmaceuticals,trade&retailandtransport.ofthese,themostsignificantincreaseswereintheconstruction,pharmaceuticalsandtrade&retailsectors.
Figure11:Sectorreportingtrends
% 100
66
84 8484
6762
58 65
47 47
59 62
79
71
78
69
7778 77 7574 7269 7267 70
61 61
69 6964
69
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66 6568
62
5249 4941
25
39
32
26
80
60
50
40
20
0
2008
2011
2013
27 theKPMGSurveyofCorporateresponsibilityreporting2013
Base: 4,100 N100 companies Source: KPMG International, The KPMG Survey of Corporate Responsibility Reporting 2013, December 2013
©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated.
MorecompaniesreportonCrintheannualreport,but‘integratedreports’areinaminorityIrhasgainedsignificantmomentumsincethelastsurveyin2011,drivenbytheworkoftheIIrCtodefineaframework,bytheKingCodeofGovernancePrinciplesandtheKingreportonGovernance(KingIII)inSouthafrica,andworldwidebycompanies’owneffortstopresentinvestor-relevantnon-financialinformationinreports.
ManycompaniesaretakingtentativestepstowardsIrbypresentingCrdataalongwithfinancialdataintheirannualcompanyreports.Companiescontinuetotakedifferentapproachestointegration,andnotallcompaniestaketheIIrCconceptanddefinitionasthestartingpoint.researchforthissurveyshowsthatmorecompaniesarecombiningtheirnon-financialwithfinancialdata,butthatfewcompaniesfeelconfidentinstatingthattheyproduceanintegratedreport.
“SincetheKingCodeofGovernancePrinciplesandtheKingreportonGovernance(KingIII)cameintoeffecton1March2010,agrowingnumberofSouthafricanorganizationshavebeenproducinganintegratedreport.Itisespeciallyencouragingthatthisgrowthisnotonlydrivenbycompliance,butratherbytherealizationthatintegratedreportingisabetterwayofprovidinginsightsintotheorganization’sstrategyanditsabilitytocreatevalueintheshort,mediumandlongterm.”
NeilMorris,Partner,KPMGinSouthAfrica
Forthefirsttimeinthissurvey,themajorityofcompanies(51percent)includeinformationonCrintheirannualfinancialreport.thisfigurehasrisendramaticallysince2008,whenitwasjust9percent,andsince2011whenitwas20percent,showingagrowingacceptancethatCrissuesarematerialforbusiness.
ofthosecompaniesthatincludeCrinformationintheirannualreports,themajority(58percent)dosoinaseparatechapter,ratherthanintegratingCrdataintothewidernarrativeonbusinessperformanceandvalue.anincreasingnumberbutstillaminority(42percent),arestartingtomakethelinkbetweenCrandbusinessstrategybyincludingCrinformationintheDirectors’report.
ofcompaniesthatincludeCrintheDirectors’report,mostalsocontinuetopresentCrinformationinaseparatechapteroutsidetheDirectors’report.thissuggeststhatmanycompaniescontinuetoseeavalueinprovidingaseparatenarrativearoundCrperformance,andenablinginterestedreaderstolookintothisaspectofcompanyperformanceingreaterdetail.ItcouldalsomeanthatcompaniesarenotyetsurehowtofullyintegratetheirCrinformationwiththewidernarrativeonbusinessperformance.
theresearchalsoshowsthatonlyaminorityofcompaniesclaimthattheypublishanintegratedreport.Justonein10companiesthatreportonCr(10 percent)dosoandevenfewer(3 percent)referencetheworkoftheIIrC.ItremainstobeseenhowthiswillchangewiththelaunchofthefinalIIrCframework,andasmorecompaniesusetheframeworkandshareexperienceswiththeirpeers.
HowwillIRchangecompanyreporting?Inthebroadestsense,
Irisaboutaligningbusinessreportingwithbusinessstrategy,explaininghowenvironmental,social,governanceandothernon-financialfactorsimpactonabusiness’sabilitytooperate,createandsustainvalueovertheshort,mediumandlongterm.
Formanybusinesses,Crinfor-mationhasanimportantroletoplayinthisbroadervisionofreporting,butitisimportanttorecognizethattheCrinformationrequiredinanintegratedannualreportmaybedifferenttothattraditionallyprovidedinCrreports.thisisbecauseanannualreportfocusesonlyonthemattersthataremostrelevanttothebusinessstrategy,andwillnormallyprovideinformationthatisspecificallyaimedatmeetinginvestorneeds.ManycompaniesmaychoosetoreportinmoredetailonCrinaseparatereportinordertomeettheneedsofotherstakeholdersinterestedinCrpoliciesandperformance.
themajorityofcompaniesthatstatetheyproduceanintegratedreportarebasedinSouthafrica,drivenbyKingIII.ninetythreepercentofn100companiesthatreportonCrinSouthafricastatethattheirreportisintegrated.
©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated. theKPMGSurveyofCorporateresponsibilityreporting2013 28
Figure 12: Figure13:Corporate responsibility in annual reporting FormatofCRinformationinannualreports
In a specific section/chapter on CR only
In a specific section/chapter on CR and in the Directors’ report
In the Directors’ report only
24
18
58
•Morethanhalf(51percent)ofn100companiesnowreportonCrintheirannualfinancialreport.thisproportionhasincreaseddramaticallyinthelastfiveyearsfromjust4percentin2008and20 percentin2011.
•Ofthecompaniesthatincludeinformationintheirannualreport,42 percentnowincludeinformationonCrintheirDirectors’report,comparedwithjustoveraquarterin2011.
Keyfindings:
5149
73
1
89
• 10 percentofcompaniesclaimtohaveintegratedtheirannualreporting,andofthese,mostdonotyetrefertotheIIrCconceptordefinition.
• ThenumberofreportsthatstatetheyareintegratedarebyfarthehighestinSouthafricaat93percentduetotherequirementsofKingIIIandtheJohannesburgStockexchange.
Keyfindings:
CRinformationinannualreport
NoCRinformationinannualreport
Base: 4,100 N100 companies Source: KPMG International, The KPMG Survey of Corporate Responsibility Reporting 2013, December 2013 Base: 2,080 N100 companies that include CR information
in annual reports Source: KPMG International, The KPMG Survey of Corporate Responsibility Reporting 2013, December 2013
Figure14:Doesthereportstateitisanintegratedreport?
No
Yes, the report states it is integrated, but does not refer to the IIRC
Yes, the report states it is integrated and it refers to the IIRC
The report does not state it is integrated, but there is reference to the IR trend/IIRC
Base: 2,897 N100 companies that report on CR Source: KPMG International, The KPMG Survey of Corporate Responsibility Reporting 2013, December 2013
29©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclient
theKPMGSurveyofCorporateresponsibilityreporting2013 servicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated.
“Companiesneedtofindanapproachtointegratedreportingthatenablesthemtoreportonvaluecreationinitsbroadestsense–financial,social,environmentalandeconomic.WhiletheworkoftheIIrCisinvaluableinaddressingtheneedsofthelongterminvestor,businessesmustalsothinkabouthowCrinformationispresentedinawaythatmeetstheneedsoftheirotherstakeholders.Wearelikelytoseemanydifferentapproachesascompaniesembracetheconceptofintegration.CompaniesmaychoosetocontinuetogivereadersmoredetailonCrinitiativesinastand-alonereport,inaseparatechapteroftheannualreportorthroughtheirwebsite.Iwouldrecommendthatcompaniesdevelopacommunicationsstrategybasedontheneedsofdifferentstakeholders.”
WimBartels,KPMG’sGlobalHeadofSustainabilityReporting&Assurance
“thereleaseofthefirstInternational<Ir>Frameworkcreatesthecatalystforashiftfromthoseinnovatorsincorporatereportingmovingtowardsintegratedreporting,toasignificantnumberofearlyadopters.Itisremarkablehowmuchawarenesshasbeencreated,withthisreporthighlightingthemomentumtowardsincorporatingcorporateresponsibilityintoannualreports.themomentumisnotedandIthankKPMGfortheinsights,itonlyencouragestheIIrCtohelpmakethisbreakthroughnowthatthereisaFrameworkforcompaniestouse.IcanonlyreiteratethewordsofWimBartelswhenhestatesthat‘Wewouldrecommendthatcompaniesdevelopacommunicationstrategybasedontheneedsofdifferentstakeholders’.”
PaulDruckman,ChiefExecutive,InternationalIntegratedReportingCouncil
©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated. theKPMGSurveyofCorporateresponsibilityreporting2013 30
GrIremainstheleadingreportingframework
Intheabsenceofregulatoryrequirements,voluntaryreportingguidelinessuchastheGrIplayanimportantroleinimprovingconsistencyinCrreportingandthequalityofdisclosure.
researchconductedforthissurveyshowsthattheGrIremainsthemostwidelyusedvoluntaryreportingframework,farexceedingtheuseofnationalstandardsandotherguidelines.overthreequarters(78percent)ofglobaln100companiesnowrefertotheGrIintheirCrreport,anincreaseof9percentagepointssince2011.amongtheworld’slargest250companiestherateincreasedto82 percentin2013from78percentin2011.thosewhodonotrefertotheGrIframeworkeitherstatethattheyusetheirownframeworksdevelopedin-house,nationalreportingguidelinesornoneatall.
Inseveralcountrieswheremorethan75 percentofreportingcompaniesrefertoGrI,itislikelythisislinkedtolocalregulatoryreportingrequirements.Forexample,inBrazil,Finland,Southafrica,Spain,andSwedenreportingrequirementsreferencetheGrIorexplicitlyrequireorrecommendthatcompaniesreportusingtheGrIguidelines.
“thereisastrongbeliefamonglargecompaniesinSouthKoreathattheapplicationofglobalstandardsandguidelinessignificantlyenhancesthecredibilityoftheirreporting.atthesametime,Koreancompanieshaveahistoryoffocusingresourcesonimprovingdisclosure.theGrIguidelinesareperceivedtobemorecrediblethanacompany’sownstandardsorthosefromlocalorganizations.”
SungwooKim,Partner,KPMGinSouthKorea
“Inthiseraofprofessionalreporting,companiesneedtobeabletoexplaintostakeholdersthebasisonwhichtheirreporthasbeenprepared.UseofanexternalframeworksuchastheGrIwillincreasinglybeseentobeessentialtodemonstratecredibility.thereiscurrentlyalackofconsistencyinhowtheGrIisusedandthisisreflectedinreportingquality.alignmentbetweencompaniesonhowtheyapplytheGrIframework,andhowtheyfocusreportingonmaterialissuesinlinewiththelatestG4Guidelines,isthenextstep.”
WimBartels,KPMG’sGlobalHeadofSustainabilityReporting&Assurance
©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclient
“theGlobalreportingInitiativeundertakesanarrayofoutreachactivities,engagingwitheveryonefrommultinationalcorporations,labororganizationsandcivilsociety,togovernment,academiaandmarketregulators.thesustainabilitychallengeisaglobalone,andGrIisinauniquepositiontoinformdebatesthroughitsglobalnetworkofthousandsofexpertsandsustainabilityleaders,GrI‘FocalPoints’,whichareregionalofficesinBeijing,Delhi,Johannesburg,newYork,Melbourne,Mumbai,SaoPauloandsoon,Bogota–andover70certifiedtrainingpartnersineveryregionintheworld.SinceKPMG’s2011surveywaspublished,thetrendtoregulatesustainabilityreportinghasincreasedmarkedly,anditisnosurprisethatthefiguresinKPMG’ssurveyarehighestinthosecountriesthathaveintroducedregulationinoneformoranother.”
ErnstLigteringen,ChiefExecutive,GlobalReportingInitiative
Figure15:UseoftheGRIGuidelines
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31 theKPMGSurveyofCorporateresponsibilityreporting2013 servicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated.
Figure 16: Where are the GRI Guidelines used most?
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Keyfindings
• Morecompaniesthanever nowrefertotheGrIguidelinesintheirCrreporting.
• In37ofthe41countriessurveyed,morethanhalfofn100companiesrefertotheGrIguidelinesintheirCrreporting.
• Morethan90percentdosoinSouthKorea,Southafrica,Portugal,Chile,BrazilandSweden.
• Lessthan50percentdosoinKazakhstan,romania,Denmarkandnigeria.
Base: N100 companies with standalone report or GRI-based section in the annual report Source: KPMG International, The KPMG Survey of Corporate Responsibility Reporting 2013, December 2013
32theKPMGSurveyofCorporateresponsibilityreporting2013©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated.
assurancereachesatippingpointamongtheworld’slargestcompaniesexternalassuranceofCrreportsisstillvoluntaryinmostcountries,withjustFranceandSouthafricapioneeringamandatoryapproachamongthe41 countriessurveyed.Despitethis,manycompaniesdoseekoutassurance,motivatedbyaneedtodemonstratecredibilitywithexternalstakeholders,tomeettherequirementsofsustainabilityindicesandbythevalueassurancecancreateinternallythroughmorereliabledataandaclearerunderstandingofCrissues.
theoverallrateofCrreportassuranceamongn100companiesin2013,includingthenewcountriesaddedtothesurveythisyear,isequalto2011at38percent.amongcountriescoveredinboththe2011and2013surveys,therateofassuranceamongcompaniesthatreportonCrincreasedto41percentin2013.thelowestratesofassuranceareseenincountrieswhereCrreportingisstillinitsinfancy,includingIndonesia,Israel,Kazakhstan,Malaysia,nigeria,SingaporeandtheUae.
Figure17:RatesofassuranceforCRreporting
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ofthen100companiesthatchoosetoassuretheirCrreports,72percentoptforalimitedratherthanreasonablelevelofassurance,10percentforareasonablelevelofassuranceandafurther8percentoptforacombinationofthetwolevels.overhalf(52percent)choosetoverifytheirwholereportratherthanselectedindicatorsorchaptersandthemajority(67percent)continuetooptforamajoraccountancyfirmtoprovideassuranceservices.
Incontrasttothen100,assuranceratesamongtheworld’s250largestcompanieshavereachedatippingpointwithoverhalf(59percent)ofcompaniesthatreportonCrnowoptingforassurance,upfrom46percentin2011.
astheG250grouphasledreportingtrendsoverthelast20years,itislikelythistrendwillbereflectedamongthen100infutureyears.
2002 2005 2008 2011 2013
2927 3033
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Base: N100/G250 companies that report on CR Source: KPMG International, The KPMG Survey of Corporate Responsibility Reporting 2013, December 2013
theKPMGSurveyofCorporateresponsibilityreporting2013
“WithmorecompaniesmovingtowardsdeeperintegrationofCrintotheirbusinessstrategyandmanagementprocesses,webelievethatexternalstakeholderswillseekinformationfromauditorsprovidingindependentassuranceofCrinformationanddemonstratingthatthecompanyisasseriousaboutCrdataasitisaboutitsfinancialinformation.atKPMGwebelievememberfirmshavearoletoplaytoassistorganizationsandstakeholdersinthatjourney.”
LarryBradley,KPMG’sGlobalHeadofAudit
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Figure 18: Assurance providers
Keyfindings
• ThenumberofcompaniesthatchoosetohavetheirCrreportsassuredbymajoraccountancyfirmsincreasedslightlyto67 percentin2013,comparedwith 64percentin2011.
Major accountancy organizations
Other providers
Base: 1,099 N100 companies that report on CR and use external assurance Source: KPMG International, The KPMG Survey of Corporate Responsibility Reporting 2013, December 2013
33
©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated.
Dataqualitystabilizesamongtheworld’slargestcompanies
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Keyfindings
• OnequarterofN100 reportingcompaniesrestatedCrdatafrompreviousyears.ofthosethatrestateddata,33percentstatethereasonforrestatementswasupdatedorimprovedmethodologies.
• ThenumberofG250companiesrestatingdatadroppedfromathirdin2011toonequarterin2013.ofthosethatrestateddata,49percentcitedupdatedorimprovedmethodologies.
ascompaniesseektointegratereportingandpresentrelevantCrdatatoinvestorsalongsideestablishedmetricsforfinancialdisclosure,itismoreimportantthaneverthatCrdataisrobust.Highlevelsofrestateddatayearuponyearriskserodingconfidenceincompanydata,reportingsystemsandprocesses.
thenumberofn100companiesthatmadeanyCrdatarestatementsincreasedslightlyto25percentin2013from21percentin2011.thenumberofcompaniesthatrestatedanyCrdatadroppedamongtheG250fromonethirdtojustoveronequarter(26percent)suggestingthatthequalityofdataisimprovingamongthebiggestcompaniesasCrreportingsystemsandprocessesmature.
themostcommontypeofrestatementfoundinbothn100andG250Crreportsrelatetoanupdatedorimprovedmethodologybeingappliedbycompanies,suggestingthatcompaniesarestrengtheningtheirinternalreportingsystemsandprocessesandimprovingthequalityofdatafordecisionmaking.
thepercentageofrestatementsduetoerrororomissionamongthen100decreasedto21percentin2013,comparedwith29percentin2011.amongtheG250,thenumberofrestatementsduetodataerrorsoromissionsalsodecreasedto22percentin2013from35percentin2011.
Figure19:ReasonsforrestatementsofCRdata
Restatements due to updated (improved) estimation/calculation methodology
Update of definitions applied
Restatements due to error or omission
Update of scope (not relating to change in acquisition/divestments)
Base: 587 N100 companies that report on CR and restated CR data Source: KPMG International, The KPMG Survey of Corporate Responsibility Reporting 2013, December 2013
©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated. theKPMGSurveyofCorporateresponsibilityreporting2013 34
the KPMG Survey of Corporate responsibility reporting 2013 35
The quality of reporting among the world’s largest companies
© 2013 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
the KPMG Survey of Corporate responsibility reporting 2013 36
Part 2 © 2013 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Introduction
asoutlinedintheprevioussection,Crreportingisabusinessnormtoday,butweneedtolookbehindthequantitativedatatounderstandwhethertheincreaseinthevolumeofreportsismatchedbyanimprovementinthequalityofreporting.
thisyear,forthefirsttime,theKPMG tosupplementtheresearch,seniorSurveyofCorporateresponsibility representativeshavebeeninterviewedreportingincludesanin-depth fromseveralofthecompaniesthatassessmentoftheCrreportspublished scoredmosthighlyintheKPMGbytheG250companies(theworld’s250 assessment.theysharedinsightslargestcompaniesbasedontheFortune intohowtheyhaveachievedbestranking).thequalityofG250reportshas practicesinreporting,theirmotivationbeenassessedusingsevencriteria: fordoingsoandthebusinessbenefits• strategy,riskandopportunity theyhavegainedasaresult.• materiality• targetsettingandindicators• suppliersandthevaluechain• stakeholderengagement• governanceofCR• transparencyandbalance.
Figure 20: KPMG’s CR reporting quality assessment, 7 key criteria
STAKEHOLDER ENGAGEMENT Report explains how stakeholders are engaged and how their views inform CR strategy, materiality process, targets, etc.
RISK, OPPORTUNITY & STRATEGY Report identifies social and environmental risks /opportunities and explains the company’s strategic response.
MATERIALITY Report demonstrates clear, on-going process to identify most significant issues.
TARGETS & INDICATORS Report declares timebound and measurable targets.
TRANSPARENCY & BALANCE Report is open about challenges as well as achievements. Communicates effectively.
SUPPLIERS & VALUE CHAIN Report shows how CR strategy and targets address material impacts of suppliers, products and services.
GOVERNANCE OF CR Report shows how CR is governed within the company, who has responsibility, and how CR performance is linked to remuneration.
Source: KPMG International, The KPMG Survey of Corporate Responsibility Reporting 2013, December 2013
37©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclient
theKPMGSurveyofCorporateresponsibilityreporting2013 servicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated.
AlmostallG250companiesissueCRreportsbutthequalityofreportingisinconsistenteachG250company’sreportwasassessedagainstthequalitycriteriaandawardedanoverallscore.thisproducedanaveragequalityscoreof59outof100amongthe93percentofG250companiesthatpublishaCrreport.
thehighestaveragescoreswereseenforreportingontargetsandindicators(68)andmateriality(66).Companiesscoredlowestforthequalityoftheirreportingonsuppliersandthevaluechain(46),governance(53)andstakeholderengagement(53).theresultssuggestthereisroomforimprovementinthequalityofcompanyreportingonCr.
thehistoricaltrendhasbeentoreportondataandnumbersratherthanthedetailsaroundprocesses.also,issuessuchassupplychainmanagementandgovernancehaveonlybecomesubjecttopublicscrutinyfairlyrecentlyandsocompanyprocessesforthesemaynotyetbeasrobustastheycouldbeinmanycompanies.thequalityofreportingmattersbecauseitistakenasindicativeofthequalityofmanagement/whatisactuallyhappeninginsidethecompany.
Poorqualityreportstendtobeassociatedwithpoorperformanceinthemindofthereader.Fewcompaniespractice‘totalgreenwash’thesedaysbutreaderscertainlygivemorecredencetoahigherqualityreport.
Aclusterof10companiesofthosesurveyedsetthepaceonequarterofG250companies(63)achievedanoverallqualityscoreof80orabove.thesecompaniesdemonstratedasuperiorunderstandingoftheimpactofsocialandenvironmentalissuesontheirbusinessandreportedontheirstrategy,performanceandinteractionwithstakeholdersmorethanothers.
tencompaniesscored90ormore.theyare:• A.P.MøllerMærsk
Transport-Denmark• BMW
Automotive–Germany• CiscoSystems
Telecommunications&media–US• FordMotorCompany
Automotive–US• HewlettPackard
Electronics&computers–US• ING
Finance,insurance&securities–TheNetherlands
• NestléFood&beverage–Switzerland
• RepsolOil&gas–Spain
• SiemensElectronics&computers–Germany
• TotalOil&gas–France
“thequalityofCrreportinginChinavariesquitedramaticallyfromthoughtfuldocumentstoonesthatonlyspeakofbroadambitionsandvalueswithlittledetailaboutactualactionsoroutcomes.reportingshouldoutlineastrategicfocus,targetsandfollow-upactions,ratherthananexhaustivelistofunconnectedsocialorenvironmentalactivities.WhenthedepartmentthatdrivesCrreportingdoesnothaveamandatetosetstrategyforthecompanyorinfluenceotherdepartments’goals,programsandpriorities,itisoftenreflectedinthequalityofthereporting.thatsaid,itisaprocessandChinamustberecognizedforgoingfromverylimiteddisclosuretothemuchhighernumbersofcompaniesreportingtodayinjustafewshortyears.”
SeanGilbert,Director,KPMGinChina
©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated. theKPMGSurveyofCorporateresponsibilityreporting2013 38
Table2: Table3: Table4:AveragequalityofG250reportsbysector AveragequalityofG250reportsbycountry AveragequalityofG250reportsbycriterion
Sector Averagescore Country Averagescore Qualitycriteria Averagescore(outofapossible100) (outofapossible100) (outofapossible100)
electronics&computers 75 Italy 85 targets&indicators 68
Mining 70 Spain 79 Materiality 66
Pharmaceuticals 70 UK 76 Strategy,risk&opportunity 62
Utilities 65 France 70 transparency&balance 58
telecommunications&media 65 australia 70 Governance 53
transport 64 netherlands 69 Stakeholderengagement 53
automotive 64 Germany 68 Suppliers&thevaluechain 46
Food&beverage 59 Switzerland 63 Source:KPMGInternational,TheKPMGSurveyof
Finance,insurance&securities 58 SouthKorea 60CorporateResponsibilityReporting2013,December2013
Chemicals&synthetics 58 Japan 55
oil&gas 55 US 54
trade&retail 55 China(incl.HongKong) 39
Metals,engineering&manufacturing 48
Construction&buildingmaterials 46
Source:KPMGInternational,TheKPMGSurveyofCorporateResponsibilityReporting2013,December2013
Electronics&computercompaniesleadthepackCompaniesintheelectronics&computerssectorleadtheG250intermsofthequalityofCrreporting,withanaveragescoreof75,followedbymining(70)andpharmaceuticals(70).thelowestscoringsectorsareoil&gas,trade&retail,metals,engineering&manufacturing,andconstruction&buildingmaterials.
Note:TableincludesonlythosecountrieswithfiveormorecompaniesintheG250thatreportonCR.
Source:KPMGInternational,TheKPMGSurveyofCorporateResponsibilityReporting2013,December2013
Europeinfrontonreportingqualityeuropeancompanieshaveasignificantleadoverotherregionsinreportingqualitywithanaveragescoreof71,comparedwithaveragescoresof54intheamericasand50inasiaPacific.
therearealsopronouncedregionaldifferencesinscoresforcertaincriteria.Forexample,companiesintheasiaPacificregionscore45onaveragefortransparencyandbalance,comparedwith53intheamericasandanaverage
europeanscoreof73.Forreportingonsuppliersandthevaluechain,averagequalityscoresare31inasiaPacific,comparedwith48intheamericasand58ineurope.
Italy,SpainandtheUKhavethehighestaveragescores,reflectingtherelativematurityofreportinginthesemarketscomparedwithcountriessuchasChina(incl.HongKong)wherewidespreadreportingisanewerphenomenon.
39©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclient
theKPMGSurveyofCorporateresponsibilityreporting2013 servicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated.
LessonsfromtheleadersKPMG’sanalysishasidentifiedaclusterof10exemplarG250companieswhoseCrreportingscoredparticularlyhighlyagainstourqualitycriteria,andafurthereightwhosereportsscoredmosthighlywithintheirspecificsector.
anumberofthesecompaniesagreedtosharetheirexperienceswithreadersofthissurvey.organizationswiththeirownexperienceinCrreportingmayrecognizemuchofwhatthesecompaniessay,whilethosethatarelesspracticedmayfindsomeusefullessons.
Table5:Companiesthatparticipatedininterviews:
Weaskedtheexemplarcompaniesthefollowingquestions.
•WhatarethefundamentalsforpublishinghighqualityCrreports?
•WhatbenefitshaveyougainedfromCrreporting?
•HowdoyouthinkCrreportingislikelytoevolve?
•Whatchallengesdoyoufaceinfurtherimprovingthequalityofyourreports?
Company Country Sector
a.P.MøllerMærsk Denmark transport
Bayer Germany Pharmaceuticals
BMW Germany automotive
CiscoSystems US telecommunications&media
enel Italy Utilities
FordMotorCompany US automotive
Hewlett-Packard US electronics&computers
InG netherlands Finance&insurance
nestlé Switzerland Food&beverage
repsol Spain oil&gas
Siemens Germany electronics&computers
tesco UK trade&retail
total France oil&gas
vale Brazil Mining
Source:KPMGInternational,TheKPMGSurveyofCorporateResponsibilityReporting2013,December2013
©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated. theKPMGSurveyofCorporateresponsibilityreporting2013 40
Gettingthefundamentalsright
EstablishrobustprocessesallthecompanieswespoketoagreedthatthefoundationsofqualityCrreportingarerobustsystemsandprocessesforcollectingdataandidentifyingmaterialissues.
“Gettingthebasicsright,suchasagoodmaterialityprocess,enablesustocreateareportthatbothsatisfiestheneedsofexternalstakeholdersandisrelevanttoourbusiness,”saidannetteStube,DirectorofGroupSustainabilityata.P.MøllerMærskGroup.“themoresolidourprocessesthebetterthereport.”
“themoresolidourprocessesthebetterthereport.”
AnnetteStube,DirectorofGroupSustainability,A.P.MøllerMærskGroup
thereis,however,no“onesize-fits-all”solutionforcollectingdata.Manyofthesecompanieshavedevelopedtheirownsystemsratherthanbuyingoff-the-shelfproducts.Inevitablyittakestime,andsometrial-and-error,togetthesesystemsrightbutthemoreintegratedtheyareintothebusiness,themoreeffectivetheyare.
attesco,forexample,Crisacorepartofthebalancedscorecardusedacrosstheentirecompanytomonitorperformanceagainstthebusinessstrategy.
LeadfromthefrontGettingtherightprocessesinplaceisimportant,butgoodprocessesarenouseiftheyarenotimplemented.
thatimplementationneedstobedrivenfromtheverytopoftheorganization,accordingtothecompanieswespoketo.
“leadershipsupportisamusttosecurethebuy-inandengagementofthefunctionswhicharecrucialtodevelopmentofthereport,”saidUrsulaMathar,HeadofGroupSustainabilityandenvironmentalProtectionatBMW.
asKersten-KarlBarth,DirectorofCorporateSustainabilityatSiemenssaid,“theSiemensSustainabilityBoard,whichischairedbytheChiefSustainabilityofficer,isthecentralsteeringcommitteeforsustainabilityatSiemens.Initsregularmeetingsitdirectsoursustainabilityprogramaspartofoursustainablestrategy,adoptsappropriatemeasuresandinitiativesandmonitorsprogress.”
ItisperhapsnosurprisethatthesecompaniesallhaveleaderswhoarepersonallyengagedwithandcommittedtoCr.
©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclientttheKPMGSurheKPMGSurvveeyofCorporateryofCorporateresponsibilitesponsibilityryreporting20eporting201133 servicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated.4141
atvale,forexample,seniorleadersplayhands-onrolesinCrreporting,helpingtoestablishprioritiesandidentifyissuesanddilemmastobecovered.
notonlydoesthishelptosecurethenecessarytimeandresourcesforqualityreporting,butitalsogivesCrteamsthelicensetobetransparentandbalancedintheirdisclosure,reportingchallengesandsetbacksaswellassuccesses.
asJohnviera,GlobalDirectorofSustainabilityofFordMotorCompanysaid,“Wehavesupportfromthetopdownandthathasenabledustoreportinamorecredibleway.”
However,evenincompanieswherereportingiswell-established,seniormanagersdocomeandgoandprioritiescanchange.Crteamsmustcontinuallydemonstratethebusinessvalueofreportingtoensurecontinuedsupport.
“Crreportingcostsmoneyandtime,soitisimportantthatinternalstakeholdersunderstandtheaddedvaluewegetfromthereport,”saidUteMenke,HeadofSustainabilityandexternalreportingatBayer.
“Byreachingoutbeyondourownfourwalls,wecancreateabetterreport.”
JohnViera,GlobalDirectorofSustainability,FordMotorCompany
Stakeholderengagement:gettherightbalancethecompaniesagreedontheimportanceofgoodstakeholderengagementindeliveringqualityCrreporting.
“Byreachingoutbeyondourownfourwalls,wecancreateabetterreportthatmeetstheneedsofourstakeholders.Italsogivesconfidencetoourseniorleadersthatwearefocusedontherightissues,”saidJohnvieraofFord.
However,thesecompaniesrecognizeitisunrealistictosatisfyalltheinformationexpectationsofallstakeholders.
eduardoGarcíaMoreno,DirectorofCorporateresponsibilityandInstitutionalServicesatrepsolnoted,“Weneedtorespondtomanystakeholders;somedemandmoreconciseinformationwhileothersrequiremoredetaileddata.”
abalancingactisrequiredandthisiswherearobustmaterialityprocessisessential.
“Wegetahugevolumeofenquiriesfromstakeholders.Wecanneverrespondtoeverything,soweusematerialitytoidentifyourprioritiesanddrivethoseforward,”saidKathyMulvany,SeniorDirectorofCorporateaffairsatCiscoSystems.
CompaniesthatpublishstakeholderviewsandcommentsintheirCrreportssaytheybenefitsignificantlyfromtheaddedcredibilitytheseindependentvoicesbring.However,someareconcernedthatthemovetowardsintegratedreportingcouldleadtoconstraintsonformatandcontentandmakeitmoredifficulttoincludestakeholdervoicesinthefuture.
“Weusematerialitytoidentifyourprioritiesanddrivethoseforward.”
KathyMulvany,SeniorDirectorofCorporateAffairs,CiscoSystems
BetransparentontargetstheexemplarcompaniesbelievetheirCrperformanceishelpedbypubliclydeclaringtheirCrtargets,andbeingopenabouttheirperformanceagainstthosetargets.
asJoshHardie,CorporateresponsibilityDirectorattescoPlCsaid,“Publishingareportdoesincentivizeustopushourselvesfurther.Ifyoumissatargetyouhavetobeopenaboutit,andyoudon’twanttomissitagain.”
atBayer,UteMenkebelievesthattargetshavebenefitsaboveandbeyondshowingexternalstakeholderstheprogressthecompanyhasmade.“Internallythetargetshelppushsustainabilityfurtherintotheorganization,”shesaid.
©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated. theKPMGSurveyofCorporateresponsibilityreporting2013 42
CreateownershipthecompaniesinterviewedgotogreatlengthstogenerateasenseofownershipofCracrossallfunctionsinthebusiness.Forexample,valeengagesonethousandemployeeseveryyeartoproduceitsCrreport.
“Wehavetomakesurepeopleunderstandwhythereportmatters,”saidvaniaSomavilla,executiveDirectorofHumanresources,HealthandSafety,Sustainabilityandenergyatvale.
“Whenweproducedourfirstreportweinvestedalotoftimeinexplainingourapproach,discussingwhytransparencyisimportantandintroducingpeopletothereportingguidelines.Wedidn’tjustgiveourviewbutlistenedtotheirperspective.thishasbeengoodforourreportingandhascontributedtoawiderculturalchangeintheorganizationaroundtransparency.”
Usereportingframeworksthesecompaniesclaimbothinternalandexternalbenefitsfromusingreportingframeworks.
SeveralsaidthatframeworkshelpCrteamstomakethecasefordisclosinginformationandtoexpandthescopeofthecompany’sCrreporting.Ifseniormanagersaremotivatedtoachieveahighframeworkrating,itismorelikelytheywillcommittotransparentandbalancedreportingoverall.
Intervieweesalsosaidthatframeworkshelptoachieveconsistencyinreportingbetweendifferentcompanies,makingiteasierforexternalstakeholderstocompareandcontrast.
this,theyfeel,enhancesthecredibilityoftheirreporting,increasingtrustandimprovingrelationships.
“Consistentreporting,inatransparentwayusinganacceptedformat,givesusthecredibilityandwherewithaltohavethoseimportantconversationswithstakeholders,”saidJohnvieraofFord.
thatsaid,anumberofcompaniesemphasizedthatwhileexternalframeworksareusefulreferencetools,theyarenosubstituteforusingtheirownjudgementtodeterminewhatandhowtoreport.
“WewritethereportandthenticktheGrIframeworkboxes,nottheotherwayaround,”saidleonWijnands,GlobalHeadofSustainabilityatInG.“Sofar,we’veneverbeeninasituationwherelookingattheGrIframeworkhasmadeusrealizewemissedsomething.”
althoughthereisbroadsupportforframeworksamongthesecompanies,thereisalsofrustrationoverthedisparitiesbetweendifferentframeworks.
“theproliferationofexternalframe-worksisfrustratingforcompaniesandaddsunnecessarycomplexity,”saidellenJackowski,livingProgressStrategy,Hewlett-Packard.
InvestinexternalassuranceCompaniesremarkedthattheconstructivecriticismandchallengetheygetfromhavingtheirCrdataassuredhelpsthemtoimprovetheclarityandcredibilityoftheirCrreporting.Someobservedspecificimprovementssuchasagreaterfocusonmateriality.
“assurancehashelpedusbemorefocusedonmateriality,tobemorefactualinourreportingandtoimprovethestrengthofoursystemsinternally,”saidUteMenkeofBayer.“Itissomethingthatmanyofourclientsandstakeholdersnowexpect.”
Janetvoûte,GlobalHeadofPublicaffairsatnestlénotedthatbyassuringitsCrdatathecompanysendsastrongsignaltoitsstakeholdersaboutitscommitmenttoCr.ItsCreatingSharedvaluereportispublishedatthesametimeasitsannualreportandaccounts,andbothareexternallyassured.
“assurancehashelpedusbemorefocusedonmateriality”
UteMenke,HeadofSustainabilityandExternalReporting,Bayer
43©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclient
theKPMGSurveyofCorporateresponsibilityreporting2013 servicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated.
thebenefitsofreporting
DrivesperformanceandinnovationManyofthecompaniesinterviewedcitedimprovedbusinessperformanceandinnovationasoneoftheprimarybenefitsfromCrreporting.
FulvioConti,ChiefexecutiveandGeneralDirectorofenelnoted,“ourmaterialityassessmentiscentraltothequalityofourreport.Itmeanswefocusonthemostrelevantissuesforboththecompanyandourstakeholders,aligningourcompetitiveadvantagewiththeadvantageofsocietiesandcommunitiesinwhichweoperate.”
atHewlett-Packardforexample,reportingthecarbonfootprintofthecompany’sownoperationshelpedtocreatemanagementawarenessofthedownstreamcarbonemissionsofitsproductsandencouragedthecompanytoaddressthem.
atInG,Crreportingresultedinasignificantshifttowardsrenewableenergyinitsutilitypowerportfolio.
“reportingourprojectfinanceenergyportfolioanditsshifttowardsrenewables,sparkedtheinternaldebateabouttheforceofsustainabilitytrends,”saidleonWijnandsofInG.
JohnvieraofFordagreed.Hesaid,“throughourriskassessmentsandreportingonclimatechangemanyyearsback,ourseniorexecutiveswereabletoidentifynewopportunitiesforinnovationinourproductsandproductionfacilities.”
BayerisanotherexampleofaG250companywherereportingonCrhashelpedtostimulateinnovation.“ourclimateprogrambeganwithafocusonefficiencyandhasledtoinnovationinourproductsandservices,suchasoursustainablehousingproducts,”saidUte Menke.“apartfromdisclosingthesedevelopmentstransparently,reportingalsoplaysaroleinthisthroughitsimpactoninternalawarenessandincreasinglydetailedandreliabledatamanagement.”
“ourmaterialityassessmentiscentraltothequalityofourreport.”
FulvioConti,ChiefExecutiveandGeneralDirector,Enel
Enhancesreputationinternallyandexternallyreportinghasasignificantpositiveimpactonemployeeprideandmotivation.Manycompanieshighlightthepositiveroletheirreportplaysinrecruitmentofnewemployeesandsomealsoemphasizeditsimportanceinretention.reportingisalsoseenasanimportanttoolforstrengtheningrelationshipswithexternalstakeholders.
leonWijnandsatInG,said,”thereportplaysanimportantroleinourcommunicationwithstakeholders.Itisouropportunitytoanswertheirquestionsandtoshareourstanceonkeyissues.Weareusingthecontentmoreandmorethroughouttheyeartocommunicatewithclients,customersandothers.”
©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated. ttheKPMGSurheKPMGSurvveeyofCorporateryofCorporateresponsibilitesponsibilityryreporting20eporting201133 4444
“actionsthatonepartofthebusinesstakescanbeveryrelevanttoanother.”
JoshHardie,CorporateResponsibilityDirector,TescoPLC
However,positiveeffectsaredependentonthequalityandcredibilityofreportedinformation.asJohnvieraofFordnotes,“togetareputationalbenefityouneedyouractionstomatchyourwordsandtoreportinaconsistentandtransparentwayagainstanacceptedframework.thatgivesyouthecredibilitytohavetheconversationswithnGosandothers.”
ForCisco,producingareportisparticularlyimportanttobuildingcredibilitywithcustomers,wholooktoCiscotoprovideproductsandsolutionsthatcanhelpthemoperatemoresustainably.
“ourproductsandserviceshelpcustomerstooperatemoresustainably,forexampletoreduceenergyandavoidemployeetravel,”saysKathyMulvanyofCisco.
“ourreportshowsthemthatwewalkthetalk,andifwecandoit,theycandoittoo.Itimprovesourcredibilityandthathelpsusengagewithcustomersandhelpthemsolvetheirsustainabilityproblems.”
ImprovesinternalcommunicationtheprocessofCrreportingcaninitselfbeapowerfulinternalcommunicationstool.
allcompaniesinterviewedsaidthatCrreportingimprovesinternalawarenessofCrandthat,onapracticallevel,thereportactsasausefulrepositoryofinformationforallemployeestouseintheirworkandincommunicatingwithexternalstakeholders,includinginvestorsandanalysts.
Insuchlargecompanies,itcanalsobeeasyforinnovativepracticesinonepartofthebusinesstobeunknowninotherparts.Crreportingcanhelpdifferentfunctionstolearnfromeachother,andforcompaniestoidentifyopportunitiestoscaleuptheirworkonCrandsustainability.
asJoshHardiefromtescosaid,“the processofcollectingandanalyzinginformationhelpsusidentifyopportunitiestouseourscaletoincreaseimpact.actionsthatonepartofthebusinesstakescanbeveryrelevanttoanother.reportingplaysaroleinhelpingtosharethatinformation.”
45©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclient
theKPMGSurveyofCorporateresponsibilityreporting2013 servicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated.
Futuretrendsandchallenges
thesecompaniesexpectthattheirCrreportingwillbecomemoreintegratedwithfinancialreportingoverthenextfiveyearsandmorefocusedonmateriality,drivenbytheGrIG4Guidelines.
CompaniesincludingBayerarealreadymakingthemovetointegrationandothersexpecttofollow,butthereisnoclearorcommonviewoverwhatformIrwilltakeinpractice.
asvaniaSomavillafromvalesaid,“InfiveyearsIbelieveintegratedreportingwillbethenorm,that’swhyweareveryactiveinthedebateonthisissue.However,althoughwerecognizetheimportance,therearemanyhurdlestoovercomeandsoonweexpecttohaveaviewofwhatintegratedreportinglookslikeforvale.”
thereisoptimismthatIrwillhelpmainstreaminvestorstobecomemoreengagedwithsustainabilityissues.
“InfiveyearsIbelieveintegratedreportingwillbethenorm.”
VaniaSomavilla,ExecutiveDirectorofHumanResources,HealthandSafety,SustainabilityandEnergy,Vale
However,therearealsoconcernsthatthedepthandbalanceofCrreportingmaybelostifitconformstothemoreformalizedstyleandtoneofmanyannualreports.
“Itisimportantthatintegrationdoesn’tresultinreportsthataremorelegalistic.Ifsustainabilityreportinginitscurrentformcompletelydisappears,thatwillbealoss,”saidJohnvieraofFord.
CompaniesalsoexpecttocommunicatearoundCrmorefrequentlyinfuture.Forexample,tescohasalreadymovedtopublishingahalfyearlyCrperformanceupdatealongsideotherongoingcommunication.
InGalsorecognizedtheneedforfrequentcommunication.“Weneedtocommunicateaseventsoccur,not12 monthsafter,”saidleonWijnandsof InG.
Finally,thesecompaniesexpectthetraditionalformatsofCrreportingtoevolveandfragmentwithashiftawayfromthe‘all-in-one’or‘encyclopedia’approach.
“Weuseourothersustainabilitycommunicationstotellourstories,whileusingourreporttobeclearandconciseandtransparentaboutourprogress,”saidellenJackowskiofHewlett-Packard.
“Weneedtocommunicateaseventsoccur,not12monthsafter.”
LeonWijnands,GlobalHeadofSustainability,ING
BertrandJanus,HeadofCSrreportingattotalagreed.Hesaid,“oneoftheproblemsincorporateresponsibilityreportingisthatcompaniestrytouseonedocumenttodomanydifferentjobs.reportingandcommunicationaretwodifferentthings.Itisimportanttodistinguishbetweenthemandtousedifferenttoolstomeetthedifferentobjectivesinvolved.Weconsiderourannualreporttobethemain‘report’whichfreesustocommunicateindifferentwaysandtotellourstorybetterbyusingvariousmedia.”
Forcompaniesincludingvaleandrepsoltheevolutionofreportingwillincludemorelocallevelreporting,enablingthemtoengagemoreeffectivelywithemployeesandexternalstakeholdersatthelocallevel.
©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated. theKPMGSurveyofCorporateresponsibilityreporting2013 46
theKPMGSurveyofCorporateresponsibilityreporting20134747 theKPMGSurveyofCorporateresponsibilityreporting2013©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated.
Climate Change Energy & Fuel
Water Scarcity
Weath
Resource
Population
Growth
Material
Scarcity 1:Strategy,riskandopportunity
Buildinglongtermvaluein Figure21:achangingworld Tensustainabilitymegaforces
today’sbusinessesoperateinaworldincreasinglyshapedbysocialandenvironmentalmegaforces.6theglobalpopulationisgrowingandshiftingtocities;wealthpatternsare
ation changing;naturalresources,including tserowaterandfoodsupplies,arebecoming feDmoredifficulttoaccessand/ormorecostlytoproduceasdemandincreases;theclimateiswarmingandecosystemsaredeclining.
Dec
line
Ecos
yste
m
thesemegaforcesdonotfunctioninisolationfromeachother–theyareinterlinkedinacomplexsystem.
Food
secu
rity
Businessleadersneedtounderstandthesemegaforcesandbealerttothecommercialrisksandopportunitiestheypresent,bothnowandinthe
noi t
future.onlythencantheycreate
aziUrban
robuststrategiesforlongtermsuccessandplanforthebusinessmodelsoftomorrow.
Crreportingshouldthereforedemonstratethatthecompany:
• isawareofsocialandenvironmentalmegaforcesandhowtheyimpact “Ciscotechnologiesandsustainabilitythebusiness bestpracticeshelpCiscoandour
customersimproveproductivityand•understandsand,ideally,has efficiencywhilereducingcost,benefiting
quantifiedtheresultingrisksand ourbusinessesandtheplanet.”opportunities
•hasastrategyinplacetominimizeriskandexploitopportunitiesandisclearabouttheactionsitistaking.
Source:KPMGInternational,ExpecttheUnexpected,February2012.
“Weareinvestingingrowth,andwewillachieveouraspirationsonlyasaresponsiblebusinesspartnerandemployer.Whetheritisanewship,portorrig,ourinvestmentsaremadewithafocusonthelongterm.Byconnectingpeopleandbusinessestoglobalsupplychainsinsmarterandmoreefficientways,weaspiretobuildbetterandstrongereconomiesintheregionsweserve.”
l
JohnT.Chambers, NilsS.Andersen,ChiefExecutiveand ChiefExecutive,Chairman, A.P.MøllerMærsk
6 KPMGInternational,ExpecttheUnexpected, CiscoSystems GroupFebruary2012.kpmg.com/expecttheunexpected
©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated. theKPMGSurveyofCorporateresponsibilityreporting2013 48
MegaforcesarewidelyacknowledgedbutidentificationisinconsistentoftheG250companiesthatreportonCr,most(87percent)identifyatleastsomesocialandenvironmentalmegaforcesthataffectthebusiness.Climatechangeandmaterialresourcescarcityarethemostfrequentlynamed,identifiedby55percentand47percentrespectively.
“Iwantustogettoapositionwherewecanmakethesamepresentationaboutourcompanyresultstothemainstreaminvestorsastothesociallyresponsibleinvestors.”
ChristophedeMargerie,ChiefExecutive,Total
“enterprisescanpursueinnovativebusinessmodelsandnewopportunitiestodelivertransformativesolutionsthatcanhavedeepimpactsonsocieties.Moreover,thefinancialcommunityisnowundeniablyrecognizingandshapingthelongtermbenefitsofcontributingtosustainabledevelopment,thataimforpositivesocialorenvironmentaloutcomeswhilegeneratingfinancialreturns.It’sbeentwoyearssinceenel’sCSrUnitandInvestorrelationsUnitstartedworkingtogethertowardsanintegratedcommunicationaboutthecompanyeSG–environmental,Social,Governance-performancetobothinstitutionalandmainstreaminvestors.”
FulvioConti,
Figure22:Doesthereportidentifyglobalenvironmentalandsocialmegaforcesthataffectthebusiness?
Climate Change 55
Material resource scarcity 47
Energy and fuel 43
Water scarcity 34
Population growth 28
Urbanization 21
Health 19
Ecosystem decline 18
Wealth 15
Ageing population 12
Food security 12
Other 3
Deforestation 2
No discussion of megaforces 13
0 20 40 60 80 100%
Base: 233 G250 companies that report on CR Source: KPMG International, The KPMG Survey of Corporate Responsibility Reporting 2013, December 2013
SixtypesofCRriskKPMGhasidentifiedsixkeytypesofriskscompaniesfacefromsocialandenvironmentalmegaforces.7Forthisreport,memberfirms’professionalsreviewedG250Crreportstofindoutwhattypesofriskslargecompaniesareidentifying.
•Physical: •Competitive:Damagetoassetsandsupply Impactsoffast-changingmarketchainsfromphysicalimpactssuch dynamics,anduncertaintyofasstorms,floods,watershortages supplyandpricevolatilityofkeyandsea-levelrise. inputs.
•Regulatory: •Social:Complexandrapidchangesto Conflicts,socialunrest,theregulatorylandscape. communityandworkerprotests,
laborshortages,migration,etc.•Reputational:
Damagetocorporatereputation •Legal:frombeingseentodothewrong exposuretopotentiallegalaction,thing. forexample,overnon-disclosureof
environmental,socialandgovernanceinformation.
49
ChiefExecutiveand 7KPMGInternational,ExpecttheUnexpected,February2012.kpmg.com/expecttheunexpected.GeneralDirector,Enel
©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclienttheKPMGSurveyofCorporateresponsibilityreporting2013 servicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated.
Figure23:Doesthereportidentifyriskstothebusinessasaresultofglobalsocialorenvironmentalmegaforces?
Reputational risk
Regulatory risk
Competitive risk
Physical risk
Social risk
Legal risk
Other type of risk
Risks not identified
2
19
21
36
38
45
48
53
0 20 40 60 80 100%
Base: 233 G250 companies that report on CR Source: KPMG International, The KPMG Survey of Corporate Responsibility Reporting 2013, December 2013
Figure24:Mostfrequentlyidentifiedrisksbyregion
“Siemenshasdefinedsustainabilitytomeanactingresponsiblyonbehalfoffuturegenerationstoachieveeconomic,environmentalandsocialprogress.Weareconvincedthatsustainability,inthissense,isabusinessopportunity,andonethatisworthseizing.oneSiemens,ourframeworkforsustainablevaluecreationandcapital-efficientgrowth,addressesthisbusinessopportunity.”
Kersten-KarlBarth,DirectorofCorporateSustainability,Siemens
Americas
Asia Pacific
Europe
0 20 40 60 80 100%
Physical risk
Regulatory risk
Reputational risk
Competitive risk
Social risk
Legal risk
Base: 233 G250 companies that report on CR Source: KPMG International, The KPMG Survey of Corporate Responsibility Reporting 2013, December 2013
©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated. theKPMGSurveyofCorporateresponsibilityreporting2013 50
Figure25:Mostfrequentlyidentifiedrisksbysector
Automotive
Chemicals & synthetics
Telecommunications & media
Construction & building materials
Electronics & computers
Finance, insurance & securities
Food & beverage
Metals, engineering & manufacturing
Mining
Oil & gas
Pharmaceuticals
Trade & retail
Transport
Utilities
0 20 40 60 80 100%
Physical risk
Regulatory risk
Reputational risk
Competitive risk
Social risk
Legal risk
Base: 233 G250 companies that report on CR Source: KPMG International, The KPMG Survey of Corporate Responsibility Reporting 2013, December 2013
MegaforceriskshitoperationsnotjustreputationsMostreportingcompanies(81percent)identifyatleastsomemegaforce-relatedrisksintheirreports,butoneinfivedonotmentionanyrelatedrisksatall.europeanG250companiesaremarkedlymorelikelytoacknowledgeenvironmentalandsocialrisksthancompaniesintheamericasorasiaPacific.
Crhastraditionallybeenseenasareputationalissue,andreputationalriskisstillthemostcommonly
mentionedtypeofrisk,citedin53percentofG250Crreports.However,theresearchalsoclearlyshowsthatasignificantnumberofcompaniesnowacknowledgeothertypesofenvironmentalandsocialrisks.almosthalftheG250companiesthatreportmentionregulatory(48percent)andcompetitive(45percent)risks.Socialrisksareacknowledgedbymorethanonethird(36percent).
Intheamericas,competitiveandregulatoryrisksaremorecommonlymentionedthanreputationalrisks,andalmostallmentionsoflegalriskinreportsfromthisregionarefromcompaniesheadquarteredintheUS.
FewcompaniesreportvalueatriskonlyasmallnumberofG250Crreports(5percent)includeinformationonfinancialvalueatstakethroughenvironmentalandsocialrisk.althoughthesecompaniesarecurrentlythe
“theworldhasfacedandresolvednumerouschallengesoverthepastcenturies.Focusingonlyontherisksofsustainabilitydoesnotaddressthekeychallengeofourtime-providingdecentlivesfor9billionpeopleby2050withinthecarryingcapacityofourplanet.Businessesplayacrucialroleintheworldbyfindingprofitablesolutionstochallenges.Itisthereforeencouragingtoseethatbigbusinessisnowseeingsustainabilitythroughalensofopportunityasmuchas,ormorethan,throughthelensofrisk.”
YvodeBoer,KPMG’sGlobalChairman,ClimateChange&SustainabilityServices
51©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclient
theKPMGSurveyofCorporateresponsibilityreporting2013 servicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated.
minority,afurther38percentofreportingG250companiesacknowledgethattheseriskscarryfinancialimpactsbutdonotgosofarastoquantifythevalueatstake.Financialquantificationofrisksismostprevalentinthefinancialandoil&gassectors.almostthreequartersoftheG250companiesthatquantifyatleastsomeoftheirenvironmentalandsocialrisksinfinancialtermsareintheoil&gasandfinancialservicessectors.
Crmighthavebeenseen10yearsagoasanethicalorreputationalissueprimarily,butenvironmentalandsocialfactorsnowpresentdirectbottom-linerisksinmost
Figure26:Doesthereportidentifyopportunitiesasaresultofglobalsocialorenvironmentaltrends?
Innovation(e.g.newproduct/service)andlearning
Improvereputationorbrand(e.g.strengthenedconsumerrelationships)
Improvemarketposition(marketshare)
Costsavings
Improveemployeemotivation
Strengthensupplierrelationships
Accesstocapitalorincreasedshareholdervalue
Improvedrelationshipswithgovernmental/regulators
Noopportunitiesidentified
Figure 27:
“everynon-financialriskmighthaveafinancialimpactifwedon’tmanageitproperly.”
UteMenke,HeadofSustainabilityandExternalReporting,Bayer
0 20 40 60 80 100%
51
36
30
24
21
12
11
13
72
Base: 233 G250 companies that report on CR Source: KPMG International, The KPMG Survey of Corporate Responsibility Reporting 2013, December 2013
Does the report state that the company has a CR strategy?
Americas
AsiaPacific
Europe
Base: 233 G250 companies that report on CR Source: KPMG International, The KPMG Survey of Corporate Responsibility Reporting 2013, December 2013
87 13
90 10
71 29
0 20 40 60 80 100%
Yes
No
“thereisareputationalbenefitfromourworkonsustainabilitybutthemotivationisaboutmuchmorethanreputation.Ifourbusinessistosucceedlongtermweneedtouseresourcesefficientlyandtocontributetothrivingcommunities.thisisessentialtoourfuturecompetitiveness.”
JoshHardie,CorporateResponsibilityDirector,TescoPLC
“reportingonsustainabilitystrategyvarieswidelyamongUScompaniesandsectors. Somecompaniesdonotreportonsustainabilitystrategyseparatelyfromcorebusinessstrategy,particularlywhereprogramshavegrownorganicallyandareembeddedinthebusinessculture.Somecompaniesmayalsodecidenottodisclosetheirstrategycompletelyoncommercialgrounds.Ideallythesustainabilitystrategyshouldaligncloselywith,orbeembeddedin,thecorporatestrategy.IseesuccessfulorganizationsusingCrasthelensofthebusinesstodriveadditionalbusinessvalue.”
JohnHickox,Partner,KPMGintheUS
©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated. theKPMGSurveyofCorporateresponsibilityreporting2013 52
theKPMGSurveyofCorporateresponsibilityreporting20135353 theKPMGSurveyofCorporateresponsibilityreporting2013©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated.
2:Materiality
CriticaltotheevolutionofCRreportingthesocialandenvironmentalimpactsofacompany’sactivitiescanbemanyandvarious,butnotallimpactsareequallyimportanteithertothebusinessoritsstakeholders.Companiesneedamaterialityprocesstoidentifyandprioritizetheissuesattheheartoftheirlongtermviabilityandtofocusmanagementandreportingresourcesonthese.
WiththeintroductionoftheGrIG4GuidelinesandthegrowthofIr,materialityissettobecomeanevenmorecriticalelementinCrreporting,andcreatesanopportunityforcompaniestoproducemorefocusedreports.
Crreportingshouldthereforedemonstratethatthecompany:
•clearlyidentifiesanddisclosesitsmaterialissues
•conductsamaterialityassessmentregularlyandhasanongoingprocessforassessingthechangingimportanceofissuestothebusinessanditsstakeholders
• takestheviewsofinternalandexternalstakeholdersintoaccountwhenassessingmateriality
•managesitsmaterialissuestoimproveperformanceovertime.
MoretransparencyisneededonmaterialityprocessesourresearchshowsthatmaterialityiswidelyreferredtoasaguidingprincipleforCrreporting,withmorethanthreequartersofG250reportsidentifyingissuesthatarematerialtothebusiness(79percent).
Companiesinthemining,construction&buildingmaterials,pharmaceuticalsandtelecommunications &mediasectorsaremostlikelytoidentifymaterialissues,whilecompaniesinthetrade&retail,automotiveandfinancesectorsareleastlikelytodoso.
However,ourresearchdidnotassesswhethercompaniesareeffectiveinidentifyingtherightissues.InKPMGmemberfirms’experience,acompany’sunderstandingofwhatistrulymaterialtothemandtheirstakeholderscanvarywidely.athoroughandongoingprocesstoidentifymaterialissuesisessentialifmaterialityistobeusefulasaguidingprincipleforstrategicdecisionmakingratherthanforreportingalone.
Figure 28:
“thematurityofminingcompaniesinidentifyingtheirmaterialissuesislargelyafunctionofthelongtermhorizonofthesector.Companiesoftenhavetotakea30-40yearviewontheiroperatingenvironmentwhenmakinginvestmentdecisions.Havingagoodhandleonmaterialissuesthatmayaffecttheseinvestmentsiscriticaltobuildingresilience,managinglongtermriskandfuture-proofingtheoperatingmodel”
WayneJansen,KPMG’sGlobalHeadofMining
Does the report identify material issues? Sector view.
Mining
Construction & building materials
Telecommunications & media
Pharmaceuticals
Oil & gas
Utilities
Transport
Electronics & computers
Metals, engineering & manufacturing
Chemicals & synthetics
Food & beverage
Finance, insurance & securities
Automotive
Trade & retail
100
89 11
88 12
88 12
86 14
85 15
83 17
82 18
82 18
80 20
78 22
75 25
71 29
62 38
0 20 40 60 80 100%
Yes Base: 233 G250 companies that report on CR Source: KPMG International, The KPMG Survey of
No Corporate Responsibility Reporting 2013, December 2013
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Figure29:Howoftendocompaniesassessmaterialissues?
1958
18
5
Not stated
A limited process is in place/infrequent assessment of materiality
A process is in place to assess materiality at specified intervals (e.g. each reporting cycle)
A process is in place to assess material issues on an ongoing basis
Base: 180 G250 companies that report on CR and identify material issues Source: KPMG International, The KPMG Survey of Corporate Responsibility Reporting 2013, December 2013
Roomforimprovementonmaterialityprocessthereisroomforimprovementintermsofexplaininghowmaterialissuesareidentifiedandhowoftenthisisdone.ManyG250companiesarenotable,orchoosenotto,explaintheprocessused.ofthecompaniesthatidentifymaterialissuesintheirreports,41percentdonotexplaintheprocess.
onlyasmallnumberofG250companies(5percent)thatreportonmaterialityassessmaterialissuesonacontinuousbasis.europeancompaniesinthefinanceandinsurancesectoraremostlikelytodoso.Infact,11ofthe12G250companiesthatcontinuouslymonitormaterialityarebasedineurope,andfiveofthosearebanks.
Materialityneedstobeintegratedintothebusinesswithcontinuousmonitoring,sonewissuescanbeassessedastheyemerge,notoncetheyhavebecomearisktothebusiness.Companiesthatusematerialityasatoolforongoingassessmentsofriskandopportunity,ratherthanasawaytomeetreportingrequirements,areinastrongerpositiontoanticipateandmanageriskeffectively.
“Wearealerttotrendsasthey “throughourmaterialityprocesswerepresentnewrisksandopportunities haveidentifiedrisksandopportunitiesthatcouldaffectourbusinessandthisis thatweren’tonourradarbefore.”fedintothereportingprocess.”
LeonWijnands,GlobalHeadofSustainability,ING
VaniaSomavilla,ExecutiveDirector,HumanResources,HealthandSafety,SustainabilityandEnergy, Vale
55©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclient
theKPMGSurveyofCorporateresponsibilityreporting2013 servicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated.
Figure30:Doesthereportstatehowstakeholderviewsareconsideredintheprocessofdefiningmaterialissues?
34
45
21
Link between stakeholders and materiality process clear
Limited explanation of link between stakeholders and materiality process
No explanation
Base: 180 G250 companies that report on CR and identify material issues Source: KPMG International, The KPMG Survey of Corporate Responsibility Reporting 2013, December 2013
MorethanonethirdofG250strugglewithstakeholderinputtomaterialityprocessStakeholderviewsarecriticaltoathoroughassessmentofmaterialissues.Companiesthatcanclearlyexplainhowstakeholdersareinvolvedintheprocessofdefiningmaterialissuesaremorelikelytoreflecttheissuesthatreallymatterintheirreports.ofthecompaniesthatreportonmaterialissues,lessthanhalf(45percent)clearlyexplainhowstakeholderinputisusedtoidentifythoseissues.themajority(55percent)offeronlypartialexplanationornoexplanationatall.
“Wehaveformallybuiltstakeholderviewsintoourreportingviaourmaterialityprocess.thisincludesregularstakeholderforumsheldaroundtheworld,whereweheardirectlyfrommanyofourkeystakeholders,complementedbywebandmediascans,stakeholdersurveysandface-to-facemeetings.”
“WelistentoawiderangeofstakeholdersandincorporatetheirviewsintoourCSrinitiatives.thecompany’smaterialissuesaresetbasedonnissan’sbusinessactivitiesandstakeholders’demands.theprogressontheseissuesismanagedandreportedbyusingtheCSrScorecard.Inadditiontothecurrentlyincludedenvironmentalissues,theMaterialityMatrixwillalsoincludeawiderrangeofsubjectsinthecomingsustainabilityreport.”
“lastyearwereallyfocusedonmaterialityforthefirsttimeinmanyyearsandweareusingthistodefinethecontentofourreport.Itishelpingustoproduceashorterandmorefocusedreportthatanswersthemostimportantquestions.”
NorikoIkari,JanetVoûte,GeneralManagerof EllenJackowski,GlobalHeadof
PublicAffairs, CSRDepartment, LivingProgressStrategy,Nestlé Nissan Hewlett-Packard
©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated. theKPMGSurveyofCorporateresponsibilityreporting2013 56
theKPMGSurveyofCorporateresponsibilityreporting20135757 theKPMGSurveyofCorporateresponsibilityreporting2013©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated.
3:targetsandindicators
targetsandkeyperformanceindicators(KPIs)arecriticalinordertoimproveCrperformanceovertime,provideafocusformanagersanddriveinnovation.
robusttargetsmustbelinkedtothebusiness’smaterialCrissues;haveaclearbaselineandtimelineforachievement;bemeasurable;andbesupportedbyclearKPIsformanagingandmeasuringprogress.
Crreportingshouldthereforedemonstratethatthecompany:
•setsperformancetargetsforsustainabilitythataretime-boundwithaclearbaselineandenddate
•assignstargetsrelevanttoitsmaterialCrissues
•hasaprocesstomeasureprogressagainsttargets
• istransparentonitsperformanceagainstCrtargets.
QualityofCRtargetsisinconsistentacrosssectorsMost(87percent)G250companiesthatissueCrreportsdodisclosetargetsinthosereports.thismayseemahighrate,butitmeansthatonein10reportingcompanieshasnoCrtargetsatall.
Inaddition,notalldisclosedtargetsarerobust.aroundonequarterofreportingcompanies(26percent)settargetsthatarenotlinkedtotheirmaterialissues.onlyhalf(56percent)backthemajorityoftheirtargetsupwithaclearbaselineandenddate.
“It’simportanttocombinelonger-termstrategictargetswithobjectivesfornextyear.Weinvolvecolleaguesatalllevelsinthetargetsettingprocess.thisisveryvaluableandweendupwithbettertargets.”
UrsulaMathar,VicePresidentSustainabilityandEnvironmentalProtection,BMWGroup
Figure31:Doesthereportincludetargetsrelatingtomaterialissues?
23
3826
13
Targets for more than 50% of material issues
Targets for up to 50% of material issues
The report contains some targets but it is not clear how these relate to material issues
There are no targets
Base: 233 G250 companies that report on CR Source: KPMG International, The KPMG Survey of Corporate Responsibility Reporting 2013, December 2013
“Food&beveragecompaniesareoneoftheleadingsectors onsettingCrtargetslinkedtotheirmaterialissues.thisislargelydrivenbyincreasingcustomer,investorandregulatorpressure.thechallengestothefoodandbeveragesectorareclearlymounting:therehasbeenaseriesofhighprofilefoodqualityscandalsrecently;nGosarerankingfoodbusinessesontheirpublicreporting,orlackthereof;andtragediesresultingfromunsafemanufacturingconditions,areallhighlightingtheneedtomovebeyondcorporateresponsibilitymerelyasabranddifferentiator.theemotivenatureofasectorthatproducesthefoodthatconsumerseathasmovedthesectortoprogressfurtherandfasterthanmanyothersinunderstandingmaterialissues,settingprioritiesandreportingagainstthem.therecentincidentsareforcinga‘wartsandall’approachtoreportingandIexpectthistrendtocontinue-particularlyamongstthosebusinessesthatneedtoengenderstakeholdertrust.”
WillyKruh,KPMG’sGlobalChairofConsumerMarkets
©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated. theKPMGSurveyofCorporateresponsibilityreporting2013 58
Metals,engineering&manufacturingcompanieshavethelowestrateoftargetsetting.Inthissector,fourin10largecompaniesissueCrreportsthatlacktargets.
Bycontrast,thereareanumberofsectorswhereallreportingG250companiesdeclareatleastsomeCrtargetsintheirreports(althoughitisnotalwaysclearhowtheyrelatetomaterialCrissues).thesesectorsincludepharmaceuticals,transport,miningandconstruction&buildingmaterials.
threesectorsperformwellforlinkingCrtargetstomaterialissues:pharmaceuticals,electronics&computersandfood&beveragecompanies.
Figure 32:
NotalllargecompaniesreportprogressagainstCRtargetsCompaniesineuropeleadwhenitcomestoreportingonhowtheyperformedagainsttheirCrtargets.ahealthy87percentofeuropeancompaniesthatdiscloseCrtargetsactuallyreportonperformanceagainstallormostofthosetargets.Intheamericasthreequartersdo(74percent)andaroundhalfinasiaPacific(58percent).threesectorsstandoutforreportingontheirperformanceagainstsettargets.ofthecompaniesthatsettargetsintheirCrreports,100percentofelectronics&computercompanies,88percentofpharmaceuticalcompaniesand87percentoftelecommunications&mediacompaniesreporttheirperformanceagainstalltargetsset.
Does the report include targets relating to material issues? Sector view.
Pharmaceuticals
Electronics & computers
Food & beverage
Transport
Utilities
Telecommunications & media
Chemicals & synthetics
Oil & gas
Automotive
Mining
Construction & building materials
Finance, insurance & securities
Trade & retail
Metals, engineering & manufacturing
0 20 40 60 80 100%
25
33
22
29
50
62 13 25
59 17 12 12
56 11 22 11
50 33 17
46 8 38 8
44 25 25 6
40 20 20 20
36 29 29 6
35 12 35 18
33 33 34
33 22 45
33 25 29 13
28 36 16 20
27 9 27 37
Targets for more than 50% of material issues
Targets for up to 50% of material issues
Some targets but not clear how these relate to material issues
No targets
Base: 233 G250 companies that report on CR Source: KPMG International, The KPMG Survey of Corporate Responsibility Reporting 2013, December 2013
“Withourenvironmentalgoals,wefoundthatsecuringinternalbuy-infromexecutiveswascritical.Webroughtanumberofexecutivestogethertoensureweweresettingtherightgoalsandthatwehadtheirsupporttocommittherequiredresourcesandfundingtomakeprogressagainstthesegoalsoverthefive-yeartimeline.”
KathyMulvany,SeniorDirectorofCorporateAffairs,CiscoSystems
“theresearchshowsthattheconnectionbetweenCrplansandactionneedstobesignificantlystrengthenedinmanycompanies.WhereasalmostalllargecompaniesreportthattheyhaveaCrstrategy,farfewerbackthatstrategyupwithtargetsforthebulkoftheirmaterialissues.KPMGmemberfirmsrecommendthatcompaniesconductagapanalysisonthisissueanddefinearoadmaptoimprovethelinkbetweenplansandactions.Inaddition,declaringtargetsbutnotreportingprogressagainstthemdamagescredibility.theresearchresultsontransparencyshowthatleadingcompaniesarenotafraidtobeopenaboutchallengesandmissedtargetsandfindbenefitsindoingthis,suchasarenewedcompanyfocusonachievingthemissedtargets.”
WimBartels,KPMG’sGlobalHeadofSustainabilityReporting&Assurance
59©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclient
theKPMGSurveyofCorporateresponsibilityreporting2013 servicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated.
“ItisclearthatsustainabilityisbecomingpartofbusinesslanguageandcultureinSingaporeandacrossasiaPacific.Howeverasthissurveydemonstrates,quantitydoesnotalwaysequatetoquality.SomecompaniesreportontheirCractivities,butshownoevidenceofrobustreportingprocesses,strategicobjectives,orclearKPIsandtargets.DevelopingmeaningfulKPIsandtargetsprovidessubstancetostrategy.Italsosetsthefoundationforcontinuousimprovementascompaniesmeasureperformance,identifytrendsandadapttofuturedevelopments.assustainabilityreportingcontinuestomature,weanticipatethatothercompaniesacrosstheregionwillfollowtheleadofthosewhohavealreadyputinplacethecriticalbuildingblocksofsustainability.”
SharadSomani,Partner,KPMGinSingapore
“ourreporthastolookbackwardsatpastperformancebutalsobeforwardlookingandgoaloriented.thisrequirestwodifferentprocessesandyouhavetohaveagoodsysteminplaceforbothaspects.”
LeonWijnands,GlobalHeadofSustainability,ING
Figure33:Docompaniesreportonperformanceachievedtodateagainsttargetsset?Regionalview.
Americas
Asia Pacific
Europe
Performance against all/most targets
Performance against some targets
No information on peformance against targets
Base: 199 G250 companies that report on CR and set targets Source: KPMG International, The KPMG Survey of Corporate Responsibility Reporting 2013, December 2013
Figure34:Docompaniesreportonperformanceachievedtodateagainsttargetsset?Sectorview.
0 20 40 60 80 100%
87 8 5
58 21 21
74 15 11
Electronics & computers
Pharmaceuticals
Telecommunications & media
Utilities
Trade & retail
Oil & gas
Finance, insurance & securities
Automotive
Mining
Transport
Food & beverage
Chemicals & synthetics
Construction & building materials
Metals, engineering & manufacturing
100
88 12
87 13
84 8 8
80 10 10
76 12 12
75 10 15
71 29
67 33
67 17 16
63 25 12
50 50
45 22 33
29 43 28
0 20 40 60 80 100%
Performance against all/most targets
Performance against some targets
No information on performance against targets
Base: 199 G250 companies that report on CR and set targets Source: KPMG International, The KPMG Survey of Corporate Responsibility Reporting 2013, December 2013
©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated. theKPMGSurveyofCorporateresponsibilityreporting2013 60
theKPMGSurveyofCorporateresponsibilityreporting20136161 theKPMGSurveyofCorporateresponsibilityreporting2013©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated.
4:Suppliersandthevaluechain
Growingpublicconcernandscrutinyacompany’smostsignificantCrimpactsareoftenfoundnotinitsownoperations,butinitsvaluechain–upstreaminthesocialandenvironmentalimpactsofitssuppliers,anddownstreamintheimpactsofitsproductsandservices(throughuseanddisposal).
recentevents,suchastheapril2013collapseofagarmentfactoryinBangladesh,8haveincreasedpublicattentionontheresponsibilityoflargecompaniestomanagetheirsuppliers.IntheUS,corporateattentiontoconflictmineralsinthesupplychainhasgrownfollowingtheDodd-FrankWallStreetreformandConsumerProtectionactof2010.
“Becauseoursuppliernetworkisverylarge,itisnotpossibleforustoinspectallsupplierstothesameextent.Wehavethereforeestablishedarisk-basedsystemofappropriateprocessestoenableustosystematicallyidentifypotentialrisksinoursupplychain.tofurtherencouragesustainablebusinessconductthroughoutourentireglobalsupplychain,wearecommittedtobuildingoursuppliers’competenceandintensifyingknowledgetransfers.”
Kersten-KarlBarth,DirectorofCorporateSustainability,Siemens
thenewGrIG4Guidelinesalsoincludeagreaterfocusonthesupplychain,reinforcingtheimportanceofmanagementanddisclosureinthisarea,andtheIIrCisencouragingmoredisclosurearoundthevaluechainthroughitsIrframework.assessingimpactsinthesupplychainismorecomplexthanmeasuringcompanies’ownimpacts,andmeasurementmethodologiesaresubjecttomoreuncertainties.However,thatshouldnotpreventcompaniesfrompartneringwiththeirsupplierstoimproveenvironmentalandsocialfootprints.Indeed,therisksofnotdoingsoincreaseeveryyear.
Crreportingshouldthereforedemonstratethatthecompany:
•hasidentifiedthesocialandenvironmentalimpactsassociatedwithitssuppliersandhasestablishedsystemsformanagingthem
Figure 35:
•hasformalizedCRrequirementsfor itssupplychainandhasmechanismsinplacetoimprovesupplierperformance(suchasasuppliercodeofconductandCrcriteriaforsupplierselection)
•workswithsupplierstohelpthemimproveCrimpactsovertime
•auditssuppliersagainstitscodeofconduct
•setstargetsfor reducingtheimpactofitssupplychainandmeasuresprogressagainstthem
•hasidentifiedthesocialandenvironmentalimpactsassociatedwiththeuseanddisposalofitsproductsandservices.
Do companies discuss the sustainability impacts of their supply chain? Regional view.
Americas
Asia Pacific
Europe
0 20 40 60 80 100%
34 40 26
389 53
29 40 31
Supply chain impacts discussed in detail Base: 233 G250 companies that report on CR
Limited discussion Source: KPMG International, The KPMG Survey of No discussion Corporate Responsibility Reporting 2013, December 2013
8http://www.bbc.co.uk/news/world-asia-22420025.
©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated. theKPMGSurveyofCorporateresponsibilityreporting2013 62
Figure 36: SupplychainreportingislowinDo companies discuss the sustainability impacts of their supply chain? sectorswithsignificantpotentialSector view impacts
59 35 6
44 31 25
41 41 18
39 42 19
33 56 11
33 33 34
27 36 37
25 62 13
22 33 45
20 20 60
17 33 50
14 32 54
8 38 54
7 44 49
aroundtwothirds(64percent)ofG250Electronics&computers companiesthatreportonCrinclude
Telecommunications somediscussionofsupplychainissues&media
intheirreports.Automotive
Trade&retailInbotheurope(74percent)andthe
Food&beverageamericas(69percent)aclearmajority
Mining ofcompaniesthatreportonCrincludeMetals,engineering thisissue,butinasiaPacificcompanies&manufacturing
thatdosoaretheexceptionratherthanPharmaceuticals
therule(47percent).MostoftheG250Construction&buildingmaterials companiesthatdonotreportonthis
Chemicals&synthetics issuearebasedinChina(incl.Transport Hong Kong)andJapan.Oil&gas
Utilities
Finance,insurance&securities
0 20 40 60 80 100%
Supplychainimpactsdiscussedindetail “IncreasinglytheworldhasstrongerBase: 233 G250 companies that report on CR Limiteddiscussion Source: KPMG International, The KPMG Survey of expectationsaroundcompaniesandNodiscussion Corporate Responsibility Reporting 2013, December 2013
theirsupplychain–therearemanystoriestobetoldbutyouhavetogetintoyoursupplychaintoreallyunderstandwhatishappening.Youcan’tmanagewhatyoudon’tmeasure.”
EllenJackowski,LivingProgressStrategy,Hewlett-Packard
63©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclient
theKPMGSurveyofCorporateresponsibilityreporting2013 servicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated.
thecompaniesleastlikelytoreportonsupplychainissuesatallarethoseinthechemicals&syntheticssector(60percentthatreportonCrdonotreportonsupplychainissues),utilities(54percent),oil&gas(54percent)andtransport(50percent)sectors.
thisissurprisinggiventhescaleofpotentialimpactsinthesupplychainsofthesesectors.Forexample,suppliermanagementissueswerereportedtobeatthecoreoftherecentoilrigdisasterintheGulfofMexico.9
CoveringvaluechainissuesindetailinCrreportsprovidesanopportunityforcompaniestoshowstakeholders,includinginvestors,thatpotentialimpactshavebeenidentifiedandarebeingproperlymanaged.
WhileamajorityofG250companiesoveralldoreportonsupplychainissues,muchofthediscussioninCrreportsislimited.thenumberoflargecompaniesthatreportindetailisfarlower.Infact,thereisonlyonesectorinwhichamajorityofreportingG250companiespublishdetaileddiscussionofCrissuesinthesupplychain:electronics&computers(59percent).
Inalltheothersectors,detailedreportingonthisissueisstillaminorityactivity,althoughtelecommunications&media(44percent),automotive(41percent)andtrade&retail(38percent)havehigherratesthanothersectors.
thelowestratesofdetailedreportingonthesupplychainareseenamongchemicals&syntheticscompanies(20percent),oil&gas(14percent),transport(17percent),utilities(8percent),andfinance&insurance(7percent).
“Weoutsourceallourmanufacturingso,understandably,ourstakeholderscarealotaboutwhatishappeninginoursupplychainaswellasourownoperations.ongreenhousegasemissions,forexample,wetrytoleadbyexamplebybeingtransparentaboutourownemissionsandaskingoursupplierstodothesame.”
KathyMulvany,SeniorDirectorofCorporateAffairs,CiscoSystems
“Crinthesupplychainisnoteasytomanageandnoteasytoreporton.theissuesareverydiverse,rangingfromimprovingworkingconditionsinfactoriesacrosstheworldtosourcingmoreresponsibleagro-commoditiesandimprovingthelivelihoodsofthefarmersinvolved.Cooperationwithsuppliersiskey;notonlyformanagingissuesinthesupplychain,butalsotobuildstrongreportinglines.Iexpectsomeofthefrontrunnerstoreportonthesupplychaininatotallydifferentwayinafewyears.thenextchallengeistoreportonthetruevalueofthecompany,takingbothpositiveandnegativeenvironmentalandsocialimpactsintoaccount.thishelpsthemtotakestrategicdecisionsonthefuturecourseofthecompanyandallowsreaderstobetterunderstandtheverynatureofthebusiness.”
BerndHendriksen,Partner,KPMGintheNetherlands
9 http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/7990445/BP-oil-spill-contractors-singled-out-as-report-identifies-eight-key-failings.html
©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated. theKPMGSurveyofCorporateresponsibilityreporting2013 64
ReportingonsupplychaintargetsispatchylessthanhalfofreportingG250companies(49percent)declareanytargetsforthemanagementoftheenvironmentalandsocialimpactsoftheirsupplychain.ofthosethatdodeclaresupplychaintargets,lessthanhalf(49percent)reportprogressagainstthemajorityofthosetargets.thissuggeststhereisstillawaytogobeforeachievementscatchupwithaspirationsinthisarea.Improvedtransparencyonprogresswillhelptobuildtrustandcredibilityamongstakeholders.
Figure37:Targetsettingforsupplychainimpacts
3751
12
Yes comprehensive targets set for supply chain improvements
Yes some targets set for supply chain improvements
No targets set for supply chain improvements
Base: 233 G250 companies that report on CR Source: KPMG International, The KPMG Survey of Corporate Responsibility Reporting 2013, December 2013
EuropeancompaniesleadinreportingonimpactsofproductsandservicesG250companiesineuropearethemostlikelytodiscussindetailtheenvironmentalandsocialimpactsoftheirproductsandservices.almostthreequartersofeuropeancompaniesthatreportonCr(73percent)doso,withafurther23percentprovidinglimitedinformation.
Intheamericas,half(49percent)ofreportingcompaniesprovidedetailedinformationondownstreamimpactsandthefiguredropstolessthanonethird(32percent)inasiaPacific.
theleadingsectorsfordetailedreportingontheimpactsofproductsandservicesare:telecommunications&media(94percent),electronics&computers(82percent)andpharmaceuticals(75percent).Companiesintheoil&gassector(18percent)andmetals,engineering&manufacturing(9percent)areleastlikelytodoso.
Figure38:Doesthereportdiscusstheimpactsofproductsandservices?
35
53
12
Yes, impacts discussed in detail
Yes, limited/high level discussion
No discussion
Base: 233 G250 companies that report on CR Source: KPMG International, The KPMG Survey of Corporate Responsibility Reporting 2013, December 2013
65©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclient
theKPMGSurveyofCorporateresponsibilityreporting2013 servicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated.
“transparencyiscrucialtobuildtrustwithoursuppliersandtorecognizeandmanagepotentialrisks.WeworkwithsupplierstodevelopCrinitiativestogetherandgivethemtimetoaddressissues,ratherthanrelyingsolelyonsupplychainauditsandratings.”
JongSikKim,ChiefOperatingOfficer/President,LGElectronics
“telecommunicationsandelectronicscompaniesstandoutforreportingontheenvironmentalandsocialimpactsoftheirproductsandservices.thesecompanieshavestrongbrandsthatrelyonpositiveconsumerperceptions.theyalsohavegoodstoriestotellabouttheirpositivecontributionstotheenvironmentandsociety:suchasthepoweroftelecommunicationstoconnectpeopleandreducecarbonemissionsfromtravel,andtheroleoftechnologyinsmarter,moreresourceefficientcities.”
GaryMatuszak,KPMG’sGlobalChairforTechnology,Media&Telecommunications
Figure39:Doesthereportexploretheimpactsofproductsandservices?Regionalview
Americas
Asia Pacific
Europe
49 32 19
32 50 18
73 23 4
0 20 40 60 80 100%
Yes, impacts discussed in detail
Yes, limited/high level discussion Base: 233 G250 companies that report on CR Source: KPMG International, The KPMG Survey of
No Corporate Responsibility Reporting 2013, December 2013
Figure40:Doesthereportexploretheimpactsofproductsandservices?Sectorview.
Telecommunications & media
Electronics & computers
Pharmaceuticals
Finance, insurance & securities
Chemicals & synthetics
Automotive
Construction & building materials
Food & beverage
Transport
Utilities
Mining
Trade & retail
Oil & gas
Metals, engineering & manufacturing
0 20 40 60 80 100%
94 6
1882
2575
131869
4060
63559
222256
4456
1750 33
153946
6733
115831
255718
36559
Yes, impacts discussed in detail Base: 233 G250 companies that report on CR
Yes, limited/high level discussion Source: KPMG International, The KPMG Survey of Corporate Responsibility Reporting 2013, December 2013 No
©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated. theKPMGSurveyofCorporateresponsibilityreporting2013 66
theKPMGSurveyofCorporateresponsibilityreporting20136767 theKPMGSurveyofCorporateresponsibilityreporting2013©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated.
5:Stakeholderengagement
Stakeholderengagementisincreasinglyimportantinthedigitalagetoday’sbusinessesoperateinanageoftransparency,wheretheinternetandsocialmediahavecreatedaglobalcommunityofactiveandengagedstakeholders.expectationsofcompaniesarehigherthaneverbeforeinbothdevelopinganddevelopedcountriesandtrustinbusinessismoreeasilydamaged.
Companiesthereforeneedtoreachouttoaneverwidergroupofstakeholders,moreoftenandinmoreinteractiveways.Bydoingsotheycanbenefitfromstakeholderinputtoidentifymaterialissues,monitorandcommunicateperformanceandlearnfromotherperspectivesandideas.
Figure 41:
Stakeholderengagementisbothameansofavoidingconflictandprotectingreputation,andasourceofinnovationandinsightintofuturerisksandopportunities.
Crreportingshouldthereforedemonstratethatthecompany:
•has a process in place to identifyandengagekeystakeholders
• responds to stakeholder feedbackandtakesactionwherenecessary
•seeks out stakeholder views on itsreportingandperformance(forexamplethroughastakeholderadvisorypanel)andreportstheseopenly.
Does the report include clear information about the process used to engage stakeholders? Regional view.
38 23 39
37 23 40
62 20 18
Americas
Asia Pacific
Europe
0 20 40 60 80 100%
Clear explanation of process
Some information given
No information
Base: 233 G250 companies that report on CR Source: KPMG International, The KPMG Survey of Corporate Responsibility Reporting 2013, December 2013
“StakeholderengagementhasalwaysbeenanimportantactivityinCrreportingbutitcanbeadouble-edgedsword.Historicallytheunwaryhaveperhapssteeredstrategytotheloudestormostfrequentvoicesratherthanthemostmaterialissues.ourresearchprovidessomeevidencethisisabating,butIbelievethatmanagingrelationshipsandcollaboratingmoreeffectivelyhasbecomeacorestrategiccompetenceinamoreinterdependentworld.throughtheworkKPMGmemberfirmshavedonewithclientsinaustralia,SouthafricaandtheUK,weknowcompaniesbenefitfromturningengagedstakeholdersintoallies,partnersandfriends.”
VincentNeate,Partner,KPMGintheUK
“theprocessofproducingandpublishingthereporthaschangedthewayweseeourrelationshipswithstakeholdersandsociety.Ithaschangedourcompanycultureforthebetter.”
MuriloFerreira,ChiefExecutive,Vale
©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated. theKPMGSurveyofCorporateresponsibilityreporting2013 68
Strongoverallperformance:mining,metals,engineering&manufacturingscorehighestoverall,theG250’sCrreportingperformanceonidentifyingstakeholdersisstrong.threequarters(77percent)ofreportingcompaniesidentifykeystakeholdersintheirCrreports.
CompaniesineuropeandasiaPacificaremorelikelytodoso(eightoutof10)thancompaniesintheamericas(onlyfiveoutof10).
Mining(100percent)andmetals,engineering&manufacturingcompanies(91percent)performmoststronglyamongindustrysectorsintermsofidentifyingtheirkeystakeholdersintheirCrreporting.
However,whenitcomestoexplainingtheprocessusedtoidentifystakeholders,G250companiesinasiaPacificandtheamericaslagbehindthoseineurope,witharoundfourin10companies offeringnoexplanationatall.lessthantwoin10europeancompaniesgivenoexplanationoftheprocess.Clarityontheprocessusedtoengagestakeholdersiscrucial.Withoutit,thereisnowaytoassesswhetheracompany’sengagementprogramiseffectiveornot.ahighproportionofG250Crreports(77percent)includeinformationonhowthecompanyhasrespondedtoatleastsomestakeholderfeedback.
MorespaceneededforstakeholdervoicesoneofthewaysacompanycandemonstrateitscommitmenttoengagingwithstakeholdersistofeatureindependentstakeholdercommentswithinitsCrreport.Commentsthatincludebothcriticismandpraisebuildauthenticityandemphasizeacompany’scommitmenttotransparentreporting.
However,givingvoicetopotentialcriticsremainschallengingformostcompanies:currentlyonlyonethird(31percent)ofG250Crreportsincludestakeholdercomments.ofreportsthatdocommunicatethirdpartyviews,onequarter(26percent)includecommentsfromastakeholderpanel,aformalizedwayofengagingwithrepresentativesfromdifferentgroups.
“theimportanceofidentifyingstakeholdersforminingcompanieshasgrownasexplorationandoperationshavemovedintodevelopingcountriesandfrontierregionswherestakeholderrelationshipscanbecomplexanddifficulttonavigate.Managingstakeholderrelationshipshasbecomekeytosecuringasociallicensetooperateandtobuildingasocialcompactwithgovernments,regulators,otherproducers,communitiesandemployees.Buildingandmaintainingtrust,creatingsharedvalueandcollaborationaregoingtobecriticalelementsofmanagingstakeholderrelationshipsinthefuture.”
WayneJansen,KPMG’sGlobalHeadofMining
Figure42:Doesthereportidentifythecompany’skeystakeholders?Sectorview.
100
91 9
85 15
83 17
82 18
81 19
80 20
78 22
78 22
76 24
75 25
71 29
67 33
65 35
Mining
Metals,engineering&manufacturing
Utilities
Transport
Oil&gas
Telecommunications&media
Chemicals&syntheticsFinance,insurance
&securitiesConstruction&
buildingmaterialsAutomotive
Pharmaceuticals
Electronics&computers
Food&beverage
Trade&retail
0 20
No
Yes
40 60 80 100%
Base: 233 G250 companies that report on CR Source: KPMG International, The KPMG Survey of Corporate Responsibility Reporting 2013, December 2013
69©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclient
theKPMGSurveyofCorporateresponsibilityreporting2013 servicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated.
Figure43:Stakeholdervoicesinreporting
Individual experts
Other stakeholder (e.g. community)
Stakeholder panel (i.e. with representatives of different groups)
Academics
Non Governmental Organization (NGO)
41
34
26
8
6
0 20 40 60 80 100%
Base: 73 G250 companies that report on Source: KPMG International, The KPMG CR and include stakeholder voices Survey of Corporate Responsibility Note: CR reports could feature comments Reporting 2013, December 2013 from more than one type of stakeholder
“Socialmediaischangingthewaycompaniesreport.ManycompaniesareusingsocialmediatoolsandtechnologiestocommunicatetheirCractivities,andinparticulartheirCrreportingcontent.SocialmediaenablescompaniestocommunicatemorefrequentlyontheirCrefforts,expandthereachoftheirsustainabilitymessages,receivefeedbackandenhancetransparencywithstakeholders.thisexpandedreachisalsoviewedasariskmitigationtechniquebysome,toelevatetheirsocialcapitalintheeventofnegativedevelopments.”
JohnHickox,Partner,KPMGintheUS
“engagingwithexternalstakeholdersisdefinitelyanimportantpartofhavingagoodreport.Butwedon’tdothisjustforourreport,wetalktostakeholderstoensurethatwehaveagoodcitizenshipstrategy,andthisfeedsintoourreport.”
EllenJackowski,LivingProgressStrategy,Hewlett-Packard
“theimportanceofstakeholderengagementcan’tbeoverstated.thislinktotheoutsideworldisessentialandwehavemadeitaprioritytoincreaseourcapacitytoengageeffectivelywithourstakeholders.”
JanetVoûte,GlobalHeadofPublicAffairs,Nestlé
©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated. theKPMGSurveyofCorporateresponsibilityreporting2013 70
G
theKPMGSurveyofCorporateresponsibilityreporting20137171 theKPMGSurveyofCorporateresponsibilityreporting2013©2013KPMGInternationalCooperative(“KPMGInternational”).KPMGInternationalprovidesnoclientservicesandisaSwissentitywithwhichtheindependentmemberfirmsoftheKPMGnetworkareaffiliated.
6:GovernanceofCr
AccountabilityiskeyCompaniesthattakeCrseriouslyhavecleargovernancestructuresandaccountabilityforCratthehighestlevelsoftheorganization.Board-levelcommitmentandinterestinCrissuescanbeacrucialfactorinensuringthatCrisembeddedinanorganization,isadequatelyresourcedandthecorrectsystemsandprocessesformanagingissuesareimplemented.
Inanorganizationwhereleadersandemployeeshavemanycompetingprioritiesandlimitedbudgets,linkingCrperformancetoremunerationcanbeessentialinmakingsurethatnecessaryinvestmentsaremadeandthatCrtargetsareachieved.thequalityofCrgovernancecanbehardtoassessfromtheoutside,butCrreportscanprovideaninsightintocompanyapproachesandtheirlikelyeffectiveness.
Crreportingshouldthereforedemonstratethatthecompany:
•hasappointedaprimarypersonand/orfunctionwithultimateresponsibilityforCratthehighestlevelsoftheorganization
•hasanindividual/functionthatmanagessustainabilityonaday-to-daybasisandreportstothecompanyboard
• linkssustainabilityperformancetoremuneration.
CRisaboard-levelconcerntheresearchsuggeststhatCristakenmoreseriouslythaneverasacorebusinessissuebytheworld’slargestcompanies,witharoundtwothirds(69percent)ofcompaniesthatreportonCrclearlyidentifyingwhohasultimateresponsibilityforCratthecompany.Formostcompanies,thisreachestheverytopoftheorganization,with24percentofreporterspointingtothecompanyboard,andafurther20percentnamingaspecificindividualontheboard–eithertheCeooranotherboardmemberinanon-sustainabilityfunction(suchastheChiefFinancialofficer,Chiefoperatingofficer,auditorrisk).Sevenpercentofreportingcompaniesstatethepersonultimatelyresponsible istheChiefSustainabilityofficer,whomayalsobeamemberoftheboard.
Figure44:WhohasultimateresponsibilityforCR?
No one identified as responsible for CR
Company Board
CEO
Chief Sustainability Officer
Board members in another function e.g. risk, audit
Senior manager that is not a board member
Other
7
31
2414
6
14
4
“BillFordcreatedourdepartmentandcontinuedcommitmentatthemostseniorlevelisreflectedintheseniorexecutivelettersinourreport.Wehavesupportfromthetopdownandthathasenabledustoreportinamorecredibleway.”
JohnViera,GlobalDirectorofSustainability,FordMotorCompany
Figure45:WhichfunctionhasresponsibilityformanagingCRonaday-to-daybasis?
1
CR/sustainability unit (separate)
Not reported
Other
Public relations/communications department
Risk department
7
61
28
3
Base: 233 G250 companies that report on CR Source: KPMG International, The KPMG Survey of Corporate Responsibility Reporting 2013, December 2013
Base: 233 G250 companies that report on CR Source: KPMG International, The KPMG Survey of Corporate Responsibility Reporting 2013, December 2013
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MostG250Crreports(61percent) SeniorleadershipproducesbetterspecifythatadedicatedCror qualityCRreportssustainabilityunitmanagesCrona Companieswhereresponsibilityforday-to-daybasis.ontheonehand,this CrsitswiththeCeo,companyboardcouldbeseenasapositivesignthat orChiefSustainabilityofficerscoremostG250companieshaveprioritized significantlyhigherforthequalityofCrandallocatedtheresourcesto theirCrreportsthancompaniesensurethataspecificfunctionwithin thatdonotstatewhohasultimatetheorganizationistaskedwith responsibilityforCr.measuring,monitoringandreportingonCrperformance.ontheotherhand,thenumberofdedicatedCrunitswithinG250companiescouldbeseenasanindicationthatCrcontinuestobemanagedasaseparateconsiderationratherthanbeingembeddedintoexistingfunctionsofthecompany.ItisalsonotalwaysclearwherethededicatedCrunitreportsto.
Figure 46: How does leadership impact reporting? Average report quality score by type of leadership.
Chief Sustainability Officer
CEO
Company Board
Board member in another function e.g. Risk, Audit
Senior manager that is not a board member
No one identified as responsible for CR
Base: 233 G250 companies that report on CR Source: KPMG International, The KPMG Survey of Corporate Responsibility Reporting 2013, December 2013
“thereportingprocesshashelpedintroducethelanguageofsustainabilityintothecompany.Inthepast,manydepartmentswereimplementingsomesustainablepractices,butdidnotcallthemthis.oursustainabilityreportingteamhashelpedtobringthesediverseinitiativestogetherintoamorestructuredapproachtosustainability.”
WeijunXie,GeneralManager,DepartmentofResourceDevelopment,ChinaMinmetalsMiningHoldingsLtd.
“acrossthecompaniessuccessfulatembeddingsustainabilityinbusiness-as-usualthereisacommonthemeemergingofthesustainabilityteamasbusinesspartners,verylikethemodelsadoptedforbestpracticeinfinanceandHr.asmallcoregroupactsasthecenterofexcellencebutresponsibilityforcommunication,innovationandactionisclearlydisseminatedthroughthenetworkofline-managersinbusinessunitsordivisionalchampionstakingafacilitativeorsupportiverole.embeddingCrratherthanhavingitasanactivitycarriedoutbyafewonbehalfofthemanyiskeytoanauthenticsustainabilityprogram.”
VincentNeate,Partner,KPMGintheUK
48
65
67
68
70
47
0 20 40 60 80 100
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CRperformancenotyetlinkedwithremunerationCompaniesthatlinkemployeeremunerationtoperformanceonsocialandenvironmentalissuesdemonstratetoemployees,investorsandotherexternalstakeholdersthattheyareseriousaboutCrperformanceandaboutensuringthelongtermviabilityofthecompany.thiscanbechallengingforcompaniestoimplement,andasaresult,theoverwhelmingmajority(78percent)ofG250companiesdonotreport alinkbetweenCrperformanceandremunerationofexecutivesoremployeesatanylevel.
ofthesmallgroupofleadingcompanies(22percent)thatdiscussthelinkbetweenCrandremunerationintheirCrreports,twothirdsareheadquarteredineurope.France,Germany,thenetherlandsandtheUK
Figure47:Istherealinkbetweenperformanceandremuneration?
78
12
10
No
Yes partial explanation
Yes clear explanation
Base: 233 G250 companies that report on CR Source: KPMG International, The KPMG Survey of Corporate Responsibility Reporting 2013, December 2013
standoutforhavingasignificantnumberofcompaniesthatreportonthelinkbetweenCrperformanceandremuneration.IntheUKitislikelythatthisisrelatedtohistoricregulationoverdisclosureofexecutiveremunerationlinkedtocompanylaw,andinGermanytotherequirementsoftheGermanCodeofGovernancewheretransparencyonexecutiveremunerationisexplicitlydefined,leadingtogreateracceptanceoftheideaofreportingonthelinkbetweenremunerationandCr.
outsideeurope,fouroutoffiveaustraliancompaniesintheG250disclosehowstaffareremuneratedinrelationtoCrperformance.thismaybebecausebalancedscorecardsthatincludehealth,safetyandenvironmentissuesareoftenusedtodetermineexecutivebonusesinaustralia.
“oursustainabilityactionplanhastargetsforeveryoperationandthisislinkedtoourcompensation.everyoneinthebusiness,evenourCeo,has20percentoftheiradditionalbonuslinkedtoperformanceonoursustainabilityindicators.”
VaniaSomavilla,ExecutiveDirector,HumanResources,HealthandSafety,SustainabilityandEnergy,Vale
“Crispartofthebalancedscorecardandourquarterlyreportingframework,usedrightacrossthebusinesstoreportonprogressinkeyareas.”
JoshHardie,CorporateResponsibilityDirector,TescoPLC
“allboardmembersarepartoftheBMWsustainabilityboardsowehaveateamapproachevenatthemostseniorlevel.Sustainabilityisintegratedintoourtarget-settingprocessesandlinkedtoremuneration,whichisverymotivating.”
UrsulaMathar,VicePresidentSustainabilityandEnvironmentalProtection,BMWGroup
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G
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7:transparencyandbalance
OpennessaboutchallengesandsetbacksisessentialforbuildingtrustIfCrreportsaretobuildtrustbetweenanorganizationanditsstakeholders,theyneedtoprovidereliableinformationaboutcompanysustainabilityperformanceovertimeandtobeopenaboutCrchallengesandsetbacks,aswellasachievements.
leadingcompaniesgivereadersaclearpictureoftheirCrperformanceovertime,presentingperformancedatathatcanbeeasilycomparedfromyeartoyear,regardlessofwhetherthetrendhighlightsareasofsuccessorfailure.
Crreportingshouldthereforedemonstratethatthecompany:
•acknowledgeschallenges,dilemmasandfailures,aswellasachievements
•usesdatatomonitorperformanceyearafteryearandmakesthisavailabletostakeholders.
Companiesinthefood&beverage,pharmaceuticalsandelectronics&computerssectorstandoutforprovidingwell-balancedreportsthatdiscusschallengesaswellasachievements.thechemicals&synthetics,metals,engineering&manufacturingandconstruction&buildingmaterialssectorshavethelowestoverallrateofbalancedreportingandthegreatestproportionofcompaniesthatdonotdiscusschallengesatallintheirCrreports.
Mostcompanies(88percent)includeatleastsomedatapointsthatcanbeeasilycomparedwithpreviousyears,enablingstakeholderstoassessprogressovertime.Countriesineuropescorehighestoncomparabilityofdata,mostlikelyduetohavingmoreestablishedprocessesfortrackingandreportingondataovertime.
Figure48:Doesthereportdiscusschallenges/dilemmas/failures,aswellasachievements?
48
29
23
Yes, report discusses challenges and is well-balanced
Yes, limited discussion of challenges
No discussion of challenges
Base: 233 G250 companies that report on CR Source: KPMG International, The KPMG Survey of Corporate Responsibility Reporting 2013, December 2013
ComparabilityofdataisstrongbutmostreportslackbalanceDespitetheimportanceoftransparency,onlyoneinfiveG250companies(23percent)achieveswell-balancedreporting.Mostprovideonlylimitedornodiscussionofchallengesandsetbacks.CompaniesineuropearemostlikelytoreportopenlyonreportingchallengeswiththoseinasiaPacificleastlikelytodoso.thenumberofcompaniesprovidingdiscussionofchallengesandsetbacksisparticularlylowamongcompaniesinChina(incl.HongKong)withonly3percentofcompaniesprovidingawell-balancedviewofCrperformance.
“transparencyisawell-recognizedprincipleforeffectivereporting,andtoachievethis,companiesmustprovidestakeholderswithabalancedaccountofprogress.However,achievingbalanceddisclosurecanbechallengingforcompanieswhomaybeuncomfortablewithadmittingmistakesorfearitmayexposethemtocriticismorevenlegalrisk.”
JoseLuisBlascoVazquez,Partner,KPMGinSpain
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Figure49:Doesthereportdiscusschallenges/dilemmas/failures,aswellasachievements?Sectorview.
Food&beverage
Pharmaceuticals
Electronics&computers
Transport
Utilities
Finance,insurance&securities
Telecommunications&media
Automotive
Trade&retail
Mining
Oil&gas
Metals,engineering&manufacturing
Chemicals&synthetics
Construction&buildingmaterials
44 45 11
38 37 25
35 53 12
33 50 17
31 54 15
25 44 31
25 50 25
24 41 35
19 54 27
17 66 17
14 50 36
9 18 73
60 40
67 33
0 20 40 60 80 100%
ReportdiscusseschallengesandiswellbalancedBase:233G250companiesthatreportonCR
Limiteddiscussionofchallenges Source:KPMGInternational,TheKPMGSurveyofNodiscussionofchallenges CorporateResponsibilityReporting2013,December2013
“Wehavestartedtouseourreporttobemoreforwardlooking,seekingtocoverthemorecontroversialissues,thosethatmightkeeptheboardawakeatnight.Itisimportanttotheboardthatourreportisatruereflectionofourbusinessandtheissuesourstakeholdersareconcernedabout.Itmustshowbothoursuccessesandthechallenges,tellingthewholestory.”
VaniaSomavilla,ExecutiveDirector,HumanResources,HealthandSafety,SustainabilityandEnergy,Vale
Figure50:Doesthereportpresentdataforpreviousyearsthatcanbeeasilycomparedagainstthecurrentyear?
5719
12
12
Yes, most data points are easily comparable with previous years
Yes, some data points are easily comparable
Yes, but few data points are easily comparable
No data points are easily comparable
Base: 233 G250 companies that report on CR Source: KPMG International, The KPMG Survey of Corporate Responsibility Reporting 2013, December 2013
“High-levelcommitmenttotransparencyisveryimportanttothequalityofthereportyouendupwith.transparencyhelpsussolveproblems,andthere’snodoubtitcontributestobetterinteractionswithexternalstakeholders.Intoday’sworldofsocialmediayoucan’taffordnottobetransparent,itistheonlywayforward.”
JanetVoûte,GlobalHeadofPublicAffairs,Nestlé
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“Inordertobetransparent,youhavetobesystematic.Itcanbedifficulttotellthebadstoriesaboutwhathasnotgonesowellalongwiththegoodstories,butit’simportantreadersseethatyouarepresentingabalancedview.”
“Ithinkwestillhavesomewaytogobeforestakeholdersfullytrusttheinformationtheyreadincompanyreports.transparentreportingonfailuresdoeshelpwiththis.”
BertrandJanus,HeadofCSRReporting,Total
AnnetteStube,DirectorofGroupSustainability,A.P.MøllerMærsk
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aboutKPMG’sClimateChange&SustainabilityServices
AboutKPMG’ssustainabilityservicesKPMGisoneofthepioneersofsustainabilityconsulting–someKPMGmemberfirmsfirstofferedsustainabilityservicesover20yearsago–whichgivesKPMG’snetworkalevelofexperiencefewcanmatch.todayournetworkemploysseveralhundredsustainabilityprofessionalslocatedinaround60countries.
Localknowledge,globalexperienceourglobalnetworkmeansKPMGprofessionalshavein-depthunderstandingoftheeconomic,political,environmentalandsociallandscapeswhereveryourorganizationmayoperate.atthesametime,ourmemberfirmsarecloselyconnectedthroughourglobalCenterofexcellence.
thismeansthat,whateverchallengeyouface,wecanputtogetherateamwithinternationalexperiencetohelpyou.
SustainabilityPlusWedon’tworkinasustainabilityvacuum.Weworkside-by-sidewithKPMGprofessionalsfromtax,auditandadvisoryincludingsectorspecialists,managementconsultants,taxaccountantsandexpertsinIt,supplychain,infrastructure,internationaldevelopmentandmore.Youwon’treceivegenericadviceandone-size-fits-allsolutions,insteadyoucanbenefitfromahand-pickedmulti-disciplinaryteam.
Results-drivenKPMGfirmshelpclientstodevelopfuture-fitbusinessstrategiesbasedonsolidunderstandingoftheissues.Westrivetothinkbigandchallengeconvention,butwithimplementationinmind,workingwithyoutofindpracticalsolutionsthatcancreatesuccessandgrowththroughchange.
ForesightneedsinsightourglobalCenterofexcellencefocusesonthought-provokingresearch,analyzingdriversofglobalchangeanddevelopingpracticalbusinessresponsesthatyoucanapplywithinyourownorganization.
SpecialistsinCRreportingandassurancereportingonenvironmentalandsocialperformanceisnowleadingpracticeinbusinesswhereverintheworldyoumayoperate.
StakeholdersfrominvestorstonGoswanttoknowthatacompanyhasidentifieditsmostsignificantenvironmentalandsocialrisksandimpacts,andisaddressingthemeffectively.theyalsoneedtoknowthattheinformationprovidedbyacompanyisaccurate,credibleandcanbetrusted.
Momentumisalsobuildingtowardsintegratedreportingwhichprovidesaholisticoverviewofanorganization’sfinancialandnon-financialperformance.
KPMGmemberfirmscanhelpyourorganizationto:
•Understandwhatenvironmentalandsocialinformationyoushouldreport
•Choosetherightreportingapproachandframeworksforyourbusiness
• Integratefinancialandnonfinancialinformationinyourreporting
•Reportinformationfor specificpurposessuchastheCarbonDisclosureProjectandsustainabilityindices
•Benchmarkthequalityofyourreportingagainstindustrypeers
•Provideindependentassuranceforyourinternalandexternalreportingsystems
•Provideindependentassuranceofyoursustainabilityperformancereporting
•Verifythesustainabilityperformanceofyoursuppliers.
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acknowledgements
thisreportwaspreparedbyKPMG’sGlobalCenterofexcellenceforClimateChange&Sustainability,withthankstothefollowingpeople:
GlobalCenterofExcellenceforClimateChange&Sustainabilityprojectteam:
YvodeBoerGlobalChairman,ClimateChange&Sustainability
WimBartelsGlobalHeadofSustainabilityreporting&assurance
MarkMcKenzieGlobalthoughtleadershipDirector
EllieAustinGlobalthoughtleadershipManager
KPMGinSingapore:BriceJavauxManager
AyeshaCanteenwallaSeniorassociate
Researchers:tomiadepoju,Mariaagudelo,Dimitrisapostolidis,SangjiBae,aseBackstrom,FannyBenard,MikeBoonen,vitalyChaikin,nathalieClément,roopaDavé,GetaDiaconu,lucilaGarcia,CarmenGräbsch,StephanieHime,MauraHodge,SilvanJurt,MaulanaJusuf,viliamKaceriak,JanaKing,SudhirKolukula,IgorKorotetskiy,radoslawKowalski,Marcolarson,Shireennaidoo,Marthaordonez,Patriciareverter,andrewrobinson,Filiparodrigues,louiserosenmeier,CarlosSilva,JamieSinclair,lorenzoSolimene,IstvánSzabó,PerSundbye,adriantan,Danataterka,atsuhiroUeda,rebeccaWong,JennyYeh,ChiZhang.
Theprojectteamwouldalsoliketothank:KatherineBlue,KatieBoden,KarenBrouwer,nunoCarrilho,JamesCheng,roopaDavé,alexandraDawe,BhavaniDaya,JessicaDomínguez,loucieDouma,robertaMoraesCuran,JennyFransson,orenGrupi,ChristianHell,BeckieHerbert,SoebinJang,SanthoshJayaram,ricardoJimenez,
CariannevanKampen,adrianKing,elenaKutepova,MarcoMaffei,JuanJoséMejía,vincentneate,Joostnotenboom,Gloriaojo,PierpaoloPagliarini,KasturiParamanathan,DagmaraPodziemska,Georgeraounas,Serenaritchie,anetterønnov,KazuhikoSaito,KatiSalo,IsabelleHirsSchaller,MarinadeoliveiraSchurr,ang-tingShih,BartSlob,DagmarStastna,victorSuhendra,alintiplic,louisevenables,egon verheijden.
Theprojectteamwouldalsoliketothankthefollowingcompaniesforparticipatingininterviews:a.P.MøllerMærsk,Bayer,BMW,CiscoSystems,enel,FordMotorCompany,Hewlett-Packard,InG,nestlé,repsol,Siemens,tesco,total,vale.
Formoreinformationonthisreport,pleasecontact:
WimBartelsGlobalHeadofSustainabilityreporting&assurancet:+31206567783e:[email protected]
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ContactyourlocalKPMGmemberfirmprofessional
DenmarkChristianHonoré[email protected]
FinlandTomasOtterströ[email protected]
HungaryIstvánSzabó[email protected]
IrelandEoinO’[email protected]
Russia,Ukraine,Georgia & [email protected]
theinformationcontainedhereinisofageneralnatureandisnotintendedtoaddressthecircumstancesofanyparticularindividualorentity.althoughweendeavortoprovideaccurateandtimelyinformation,therecanbenoguaranteethatsuchinformationisaccurateasofthedateitisreceivedorthatitwillcontinuetobeaccurateinthefuture.nooneshouldactonsuchinformationwithoutappropriateprofessionaladviceafterathoroughexaminationoftheparticularsituation.
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Publicationname:theKPMGSurveyofCorporateresponsibilityreporting2013
Publicationnumber:131018
Publicationdate:December2013
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