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Source: Governance & Accountability Institute

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March 14, 2016

SERVICES  |  RESEARCH  |  EVENTS  |  WEBINARS  |  BLOG  |  ARCHIVE

THIS YEARS TALLY OF S&P 500. COMPANY DISCLOSURES  81% NOW PUBLISHING SUSTAINABILITY / RESPONSIBILITY REPORTS

For institutional investors, the key benchmark for many professionals is the S&P 500®, which is considered to be the best single gauge of large-cap U. S. equities. More than US$7 trillion in Assets Under Management are benchmarked to this index, including indexed AUM of $1.9 trillion. In all, the S&P 500 captures 80% coverage of available market cap. 

The G&A Institute research team tracks the sustainability / responsibility / citizenship reporting activities of these 500 leading companies.  When we started our annual tallying of reporters/non-reporters in 2011, we found that 80% of the S&P were not publishing sustainability reports.  The 2015 tally show that 81% were reporting – a dramatic reversal over the five year period. 

Put another way, the non-reporters went from being 80% of the total to just 19% now – a dramatic trend that reflects, we believe, the steadily increasing expectation of asset owners and managers, and other stakeholders (such as major customers) that large-cap publicly-traded companies will develop sustainability strategies, organize teams, measure key ESG data sets, manage carbon emissions, water intake and waste, and much more…and then report on their progress in a structured manner.  (Many of the S&P 500 embrace the Global Reporting Initiative framework).

Louis Coppola, G&A’s executive vice president, designs and coordinates the annual S&P 500 analysis project.  His thoughts on reviewing the 2015 reporting, and the dramatic shift over the five years of researching: “Corporate leaders have become more sophisticated in the disclosures and reporting activities, with an increased focus on using concepts such as materiality, stakeholder engagement, comparability, context, timelines, and reliability to make ESG data more strategically useful for decision-making by both management and stakeholders, including investors.”

The 2016 review of corporate reporting activities in 2015 included the work of a very talented intern team – their contributions were important and we salute them here:

  •  Julia Casciotti – Columbia University – M.P.H in Environmental Health Sciences, May 2016
  • Alexander Cohen – Baruch College – MBA Sustainability and International Business, December 2015
  • Kristina Jette Mullen – Simmons School of Management – MBA in Sustainability & Business Strategy, May 2015
  • Ashley Thomsen – W.P. Carey School of Business – B.A. Global Logistics Management, May 2016
  • Alvis Yuen – City College of New York  M.S. in Sustainability, December 2016

We invite you to read and download for your files this week’s Top Story with details of our S&P 500 research effort.

Top Story of the Week

FLASH REPORT: Eighty One Percent (81%) of the S&P 500 Index Companies Published Corporate Sustainability Reports in 2015   
(Tuesday - March 15, 2016)
Source: Governance & Accountability Institute, Inc. - G&A Institute charted the rapid and significant uptake in corporate sustainability reporting among the 500 companies -- over the years sustainability reporting rose from just 20% of the companies reporting in 2011 to 81% in 2015....

CSR CERTIFICATE PROGRAM - FACULTY / COURSE UPDATE: What is "Materiality"? Why Is It important? How Do I Assess What ESG Issues are Strategically Important?   
(Thursday - March 17, 2016)
Source: Governance & Accountability Institute, Inc. - An Interactive Course to Answer These Questions Led by Louis D. Coppola -- Rutgers Business School’s Institute for Ethical Leadership and G&A Institute joined forces to develop and offer a Corporate Social Responsibility...

 

Sustainability in Focus

Why Microsoft gave sustainability a promotion   
(Monday - March 14, 2016)
Source: GreenBiz - Sustainability has been kicked upstairs at Microsoft Corp., a promotion in terms of where it sits, to whom it reports, what it does and how it is viewed across the organization. And therein lies a hopeful tale for the entire...

Large equity funds score poorly on sustainability   
(Monday - March 14, 2016)
Source: FT - High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts & Cs and Copyright Policy for more detail...

The 10 commandments for sustainability collaborations   
(Tuesday - March 15, 2016)
Source: GreenBiz - McDonald’s had never done this before — inviting NGO leaders into a closed-door, "first look" strategy meeting, with a whole morning dedicated to sustainability.

Will Millennials and Boomers Fight or Unite Over Sustainability?   
(Wednesday - March 16, 2016)
Source: Triple Pundit - The rise of millennials and the aging of the boomer generation is reshaping America. In 2017, 50 percent of the U.S. population will be 50 years old or older. That same year, the millennial generation will become both America’s...

Sustaining profits: The financial benefits of sustainability initiatives    
(Wednesday - March 16, 2016)
Source: FoodDrive - As more companies embrace sustainability, the benefits have evolved from a feel-good reputation boost to something much more tangible: profitability.

Can Sustainability Sell Sneakers?   
(Thursday - March 17, 2016)
Source: Forbes - In an industry dominated by pro sponsorships and celebrity endorsements, Adidas is opening up a second front to reach its millennial customers, innovating ways to engage on sustainability and other topics beyond the confines of...

Introducing the Morningstar Sustainability Rating for Funds
(Thursday - March 17, 2016)
Source: Morningstar - Sustainability is a big deal to a lot of people today. In survey after survey, citizens express concern about climate change, environmental issues, the ways companies treat their workers, and corporate social responsibility.

Why ‘zero deforestation’ is only one piece of the sustainability puzzle   
(Friday - March 18, 2016)
Source: Forests News - In the midst of efforts to achieve ‘zero deforestation’, it’s important to remember that halting deforestation is not just about forests, and it is not always good for local people, depending on how it is done. Commitments should...

Sustainability Reporting 101: Eight Steps to Driving Business Growth   
(Friday - March 18, 2016)
Source: Sustainable Brands - When it comes to sustainability reporting, companies may feel like they’re in an increasingly uncomfortable public-private vice. On one side, consumers and shareholders are pressuring organizations to be better corporate citizens...

ESG Issues & Players

Environmental risks killing 12.6 million people, WHO study says    
(Tuesday - March 15, 2016)
Source: The Guardian - One in four deaths avoidable as environmental factors contribute to over 100 diseases, with air pollution responsible for 25% of strokes and 19% of cancers

Hillary and Bernie Need a Fracking Lesson   
(Wednesday - March 16, 2016)
Source: American Spectator - Fracking has nearly doubled the amount of oil produced in the United States since 2008, and it is largely responsible for the dramatic drop in gas prices the country is currently experiencing. It has also made the United States...

Gallup: Fears About Global Warming at 8-Year High   
(Thursday - March 17, 2016)
Source: NewsFront - Global warming is becoming a more serious concern among Americans, with fears about the issue reaching near-decade highs — along with rising attitudes that climate change is being caused by activities, a new Gallup poll...

ESG investing trend gains momentum   
(Friday - March 18, 2016) Associated Profiles : Jantzi-Sustainalytics, Sustainalytics
Source: FT Adviser - First, each fund with at least 50 per cent of assets covered by a company-level ESG [environmental, social or governance] score from Sustainalytics receives a portfolio sustainability score. This score is an...

 

Asset Managers, US Pension Funds,
Sovereign Wealth Funds

UK Judge Adjourns Tug-of-War Case over Libyan Sovereign Wealth Fund   
(Wednesday - March 16, 2016) Associated Profiles : Libyan Investment Authority
Source: Wall Street Journal - The Libyan Investment Authority, or LIA, is the subject of a power struggle between two competing chairmen, Hassan Bouhadi and AbdulMagid Breish. The LIA was created during the regime of Moammar Gadhafi, who...

Pension Fund Takes Unprecedented Climate Change Action   
(Friday - March 18, 2016) Associated Profiles : California State Teachers’ Retirement System
Source: Governing - Yee in a statement after the vote. Yee is a board member of CalPERS and the California State Teachers' Retirement System (CalSTRS). As major investors (CalPERS is worth $288 billion), pension systems...

Is Your Mutual Fund a Climate Change Denier or Climate Champion?   
(Wednesday - March 16, 2016)
Source: EcoWatch - New proxy voting data showcasing how mutual fund companies voted on climate change resolutions in 2015 reveals a major divide in their thinking on this mega issue that will have wide-ranging ripples on investment portfolios.

Yellen steers Fed with cautious hand, despite hints of inflation   
(Thursday - March 17, 2016)
Source: Reuters - Federal Reserve policymakers urging caution over interest rate hikes have gained the upper hand in the central bank's internal debate, but the risk for the U.S. economy is that they are wrong to downplay a recent rise in...

Warren Buffett explains why a good business is one 'your idiot nephew' could run (MCO, BRK.A, BRK.B)   
(Monday - March 14, 2016) Associated Profiles : Financial Crisis Inquiry Commission
Source: San Francisco Gate - Rather, as Warren Buffett noted in an interview with the Financial Crisis Inquiry Commission (FCIC) in May 2010, one should instead in invest in a business that any fool can run. The interview comes from a...

 

Watching the Watchers

US | SIF: The Forum for Sustainable and Responsible Investment
Headquarters: Washington, DC
Established: 1981

ESG/Sustainability Focus:
US SIF: The Forum for Sustainable and Responsible Investment and its members are focused on socially responsible and sustainable investment (SRI).

KEY PARTNERS
Green America, plus numerous project-specific benefactors and sponsors such as Bloomberg, TIAA-CREF, and others.

Well-known members include Calvert Investments, Pax World Management, Neuberger Berman, Self-Help Credit Union, TIAA-CREF, Domini Social Investment, Legg Mason Investment Counsel, and Parnassus Investments, among others.

The US SIF membership includes investment managers, broker-dealers, mutual fund companies, researchers, financial planners/advisors, bankers, credit unions, community development organizers, non-profits, foundations, Native American tribes, and other types of asset owners/managers.

OVERVIEW/MISSION
US SIF states that its vision is “a world in which investment capital helps build a sustainable and equitable economy.” Think of US SIF as “the” trade / membership association for institutional and individual asset owners and managers focused on Sustainable and Responsible Investing (SRI).

News Sweeps

Check It Out...
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.

Check It Out...


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:

Reporting 2025 – Perspectives: The Future of Reporting and Preparing the Next Generation

Advancing CSR Leadership: G&A Institute Teams With Rutgers’ Institute for Ethical Leadership In New 2 Day Certificate Program – First Classes Begin in April / Certificates to be Awarded at Completion

“Our Common Future” – the Masterpiece of Gro Harlem Brundtland, Also Known to Many As the Influential “Brundtland Report”

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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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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.

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