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Source: Governance & Accountability Institute

Sustainability-Highlights-Header
May 4, 2016

SERVICES  |  RESEARCH  |  EVENTS  |  WEBINARS  |  BLOG  |  ARCHIVE

Examining the Bloomberg Average ESG Disclosure Scores-- Higher For S&P 500(R) Companies That Disclose/Publish Sustainability Reports With Relevant ESG Data

At G&A Institute we continue to look at the S&P 500(R) universe of companies in two groups: those companies that have published in some form a sustainability, corporate responsibility, citizenship or some related titling to publicly disclose important data and narrative on their ESG strategies, actions, performance and achievements. And, a second group, those companies that do not disclose / report on ESG factors.

This is an important corporate universe, representing more than 80% of the available market coverage and is the best single gauge of large-cap U.S. equities. Some US$7 trillion in Assets Under Management benchmarked to the S&P 500, including $1.0 trillion in index products. 

When our team started tracking the ESG / CR / Sustainability reporting practices of these leading U.S. companies, we determined that just under 20% of companies had published data and narratives in 2011.That meant that 8-out-of-10 large-caps in the universe did not report. In 2012, we saw a dramatic shift: 53% -- more than half of the 500 -- were reporting. That increased to three-quarters of companies in 2014 and edged up to 81% reporting by 2015. And the non-reporters steadily declined to now only 19% of the 500 leading companies.

We partnered with Bloomberg LP as we continued our analysis to see if the reporting companies were favored with higher disclosure scores in the Bloomberg LP ESG dashboard resource, and if non-reporters were assigned a lower score. “The Bloomberg” is accessed by more than 325,000 professional users around the world and the ESG Dashboard is among the fastest-growing resources available to users.

Result: “Average Bloomberg ESG Disclosure Scores” assigned to reporting companies were higher for E, S, G and ESG combined scores. E and S score differences were pronounced – reporters were assigned higher averages. Makes sense:  large-caps disclosing and doing structured reporting on their sustainability journey are providing this very important global investment information service provider (Bloomberg LP) with information needed to help investors evaluate risk and opportunity -- and make important portfolio management decisions. 

Our thanks for Hideki Suzuki, Senior Corporate Governance Analyst at Bloomberg for his collaboration with G&A. As he observes: “ESG investment space continues to evolve.  We are moving beyond disclosure. Bloomberg provides performance assessment tools based on quant data provided by companies. For that to be meaningful and actionable by investors, we need quality data from companies that is aligned with company FY end and scope of disclosure covering what is covered in their financial statement disclosure.”

Sounds like the S&P 500 large-cap reporting companies have gotten the message! You can read the details of the Bloomberg – G&A Institute analysis in our Top Story.

Top Story
FLASH REPORT: G&A Institute and Bloomberg LP Partnered to Examine Bloomberg ESG Disclosure Scores For S&P 500 Companies Reporting VS Not Reporting on Sustainability
(Wednesday - April 27, 2016)
Source: Governance & Accountability Institute, Inc. - Continuing the in-depth analysis of S&P 500 (r) companies' sustainability reporting activities, Governance & Accountability Institute teamed with Bloomberg LP to analyze the data, scores and perceptions presented to investment professionals using the Bloomberg Professional information platform which features ESG data and assigns disclosure scores for public companies.

 

Sustainability in Focus

Comment: Sustainability matters
(Monday - April 25, 2016)
Source: Hotelier Middle East - One of the key takeaways of the Caterer Food & Business Conference, which we hosted last month in Dubai, was that while fads come and go, trends that actually have a positive impact and make sense stick around.

Does sustainability make better and more adaptive businesses?  
(Monday - April 25, 2016)
Source: The Guardian - Amid these difficult times for the media sector we wanted to ask the question: Does being and thinking more sustainably create better and more adaptive businesses and what types of behaviors do they demonstrate?

5 ways that NGOs stunt sustainability
(Monday - April 25, 2016)
Source: GreenBiz - Before I blast the NGO community, let me say I consider them as a good friend. Friends tell each other when their collar is twisted, when kale is stuck in their front teeth. This is the spirit of this column.

How Manufacturers Can Maximize Environmental SustainabilityBy
(Tuesday - April 26, 2016)
Source: Environmental Leader - Private corporations can — and should — take the lead in helping the US achieve its emissions reductions goals under the Paris climate agreement, writes Tensie Whelan, director of the Center for Sustainable Business at NYU Stern...

Economic concerns drive sustainability in American cities and towns
(Tuesday - April 26, 2016)
Source: Phys.org - While environmental issues are often cited as a major factor in cities and towns in pursuing sustainability, a new study shows that economic concerns can be just as important to local governments in adopting concrete...

Sustainability’s new frontier: Asia
(Wednesday - April 27, 2016)
Source: MarketWatch - Most of the companies I talk to now understand that to attract investor capital and to grow over the long term, they need to consider the overall sustainability of their business practices,” says Hwan...

You want to join the sustainable investment trend. Now what'
(Wednesday - April 27, 2016) Associated Profiles : Social Investment Forum (SIF)
- WTOP - "You need to do the same due diligence you would be doing if you weren't interested in ESG," says Lisa Woll, chief executive of US SIF - The Forum for Sustainable and Responsible Investment, an advocacy and industry group....

Commentary: Pondering the many sides of sustainability
(Wednesday - April 27, 2016)
Source: Beef Magazine - Sustainability—a big word these days. Hard to define and maybe harder to achieve, according to folks in some circles. As an American involved in agriculture, I am proud and somewhat amazed at the ability of farmers and ranchers...

Smart Manufacturing Improves Sustainability Efforts
(Thursday - April 28, 2016)
Source: Industry Week - What you need to know is whether you are using electricity wisely and economically, with minimal waste. And you can only know that if you know the context of your electricity use. For example, on an hour or day with higher use...

Timberland Announces Bold Sustainability Goals for 2020
(Thursday - April 28, 2016)
Source: Triple Pundit - Timberland is a longstanding sustainability leader within the apparel industry. The New Hampshire-based company is a favorite of the outdoorsy crowd, and its shoes are popular not only for their reputation as being sturdy and...

What one milk carton says about sustainability messaging around the world
(Thursday - April 28, 2016)
Source: The Guardian - In it we asked more than 5,500 business and public sector leaders worldwide which Sustainable Development Goals (SDGs) they think hold the best business potential in their region. Their answers showed differences across the...

Inside agriculture's sustainability inflection point
(Friday - April 29, 2016)
Source: GreenBiz - With responsibility for a third of global warming and needing to feed 9 billion people by mid-century, agriculture is feeling the heat — and opportunities — to change.

Sustainability Best Practices: What Does It Really Take To Be A Sustainable Company
(Friday - April 29, 2016)
Source: Transworld Business - To consumers who are not familiar with the manufacturing supply chain, they may think being a sustainable-driven company means using solar energy, recycled paper in the office and selling organic cotton garments. All of those are...

Sappi North America Releases 2015 Sustainability Report
(Friday - April 29, 2016)
Source: PR NewsWire - Sappi North America, a leading producer and supplier of diversified paper and packaging products, has announced the release of its 2015 Sustainability Report. The report showcases Sappi's industry leading sustainability...

 

ESG Issues & Players

Saudi Arabia will struggle to kick its addiction to oil
(Thursday - April 28, 2016)
Source: Reuters -The prince claimed his national transformation program would enable the kingdom to "live without oil" as early as 2020

The Changing Face Of Socially Responsible Investing
(Wednesday - April 27, 2016)
Source: Forbes - Some critiques of traditional socially responsible investing strategies are that they often do not consider the investment merits of a given company’s stock and that the excluded companies that were perhaps “sinful” in certain...

Warren Buffett Faces Pressure to Invest for the Climate, Not Just for Profit
(Wednesday - April 27, 2016) Associated Profiles : Ceres
- Inside Climate News - manager of the insurance program at Ceres, a nonprofit that promotes sustainable business practices. "The markets pay attention to where he puts his money." Though Buffett profits handsomely from substantial...

Mitsubishi Admits It Has Falsified Mileage Data Since 1991
(Tuesday - April 26, 2016)
Source: NBC News - Mitsubishi said it had used fuel economy testing methods that were not compliant with Japanese regulations for 25 years, much longer than previously known, and would set up an external committee to investigate the matter.

U.S. Senator: 'Global Warming is...the Moral Challenge of Our Generation'
(Tuesday - April 26, 2016)
Source: CNS News - Sen. Jeff Merkley (D.-Ore.) declared on the Senate floor last week that “global warming is…the more challenge of our generation.”

 

Asset Managers, US Pension Funds,
Sovereign Wealth Funds

It's Still Goldman Sachs And Wells Fargo
(Monday - April 25, 2016)
Source: Seeking Alpha - What have we learned in the month since I backed Goldman Sachs and Wells Fargo? That these organizations have a strong plan, and stick to it during adversity. Thus my positive opinion of the two firms was reinforced by new...

Socially Responsible Investing for Public Employee Pension Fund?
(Tuesday - April 26, 2016)
Source: NJ Spotlight - With $70 billion at their disposal, pension-fund managers, according to some experts, need to consider both the return on investment and the types of companies being invested in

1MDB president: I never admitted there was fraud
(Thursday - April 28, 2016) Associated Profiles : International Petroleum Investment Company (IPIC)
Source: Asiaone Business - 1MDB, he said, had dealt with senior executives, hence these transactions bind Abu Dhabi's International Petroleum Investment Company (IPIC) and Aabar PJS as corporates. "Bluntly put, it is an internal matter...

Watching the Watchers

As You Sow (AYS)
Headquarters: San Francisco, CA
Established: 1992

ESG/Sustainability Focus: Yes: focus on corporate responsibility.

KEY PARTNERS
Collaborates with numerous organizations, including Proxy Impact, Social Investment Forum (SIF), Sustainable Investments Institute (SI2), Interfaith Center on Corporate Responsibility (ICCR), Trillium Asset Management,Walden Asset Management, and Green Century.

Clients include Domini Social Investments and Calvert Group – two of the largest SRI asset managers and mutual fund companies in the US.

Also – clients and partners include these firms:Disney; McDonald's; Dell; HP; Starbucks; Coca-Cola; Time-Warner; Gap; Home Depot; Staples.

OVERVIEW/MISSION
As You Sow
states that its mission is: "To promote corporate responsibility through shareholder advocacy, grantmaking, and innovative legal strategies."

The organization's vision is "A safe, just, and sustainable world in which environmental health and human rights are central to corporate decision making."

The organization's focus is on: Corporate Responsibility; Sustainability; Human Rights; Health & Safety; Environmental Enforcement; Grantmaking.

As You Sow has been a prominent player in proxy voting and shareholder action for many years.

News Sweeps



G&A Institute Sustainability Update
Informative, insightful, thought provoking
Governance & Accountability Institute's blog focusing on the sustainable world evolving daily before our eyes.  Read it, absorb it, question it and challenge. Recent posts:

A Fascinating Look Into the 21st Century – The Forbes Interview With Hank Boerner by Chris Skroupa

“Purpose” – It is Central to Business Success Says a Sustainable Brands Thinker As He Explores the Sustainability/CR Intersection

FLASH REPORT: G&A Institute and Bloomberg LP Partnered to Examine Bloomberg ESG Disclosure Scores For S&P 500 Companies Reporting VS Not Reporting on Sustainability

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G&A Supports GSC
17 Weeks / 17 SDGs Initiative

The Global Sourcing Council (GSC) proudly commits its support of the United Nations Sustainable Development Goals (SDGs) agenda by educating and inspiring companies to do their part and take action to help achieve extraordinary sustainable results throughout the globe. To join us, please download our GSC 17/17 SDG Prospectus and contact Louis Coppola or Wanda Lopuch.
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Competitive Benchmarking Analysis
It is always helpful to know what peers and competitors are doing in certain practices -- what are the best practices of investment and industry peers in terms of transparency, disclosure and structured reporting on their sustainability performance?  What story do peers tell of their sustainability journey -- the strategies adopted, internal organization for success, implemented programs and initiatives, the third party recognitions they earned?  What is the story being told through their disclosures and reporting of the success of the sustainability journey?  Learn more About G&A's Competitive Benchmarking Analysis

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Sustainability & Corporate Responsibility Reporting

G&A Institute is the exclusive Data Partner for the Global Reporting
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(GRI) in the USA, UK and Ireland.  A G&A team of six or more perform this pro bono work on behalf of GRI. Over the past 5+ years, G&A has analyzed more than 5,000 sustainability reports in this role and databased more than 100 important data points for each of the five thousand reports.

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SustainabilityHQ Highlights is prepared by the Governance & Accountability Institute, Inc. based on continuous monitoring of trends and developments in Sustainability and ESG. Click here for more information on the Governance & Accountability Institute’s SustainabilityHQ resources. The SustainabilityHQ platform is available by subscription.

Governance & Accountability Instiute is the “Sustainability Headquarters™” for clients in the corporate, investment, public and social sectors. Based in New York, G&A is a for-profit consulting organization providing a range of value-added strategies, services and resources related to ESG & sustainability to clients in the corporate and capital markets communities.The G&A services portfolio includes:
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