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The S&P 500® Universe -- Setting the Pace for Corporate Sustainability Reporting: 90% Mark Reached!

The popular corporate equity “baskets” including: the Dow Jones Industrial Index, Nasdaq 100, S&P 500, the Russell 1,000 - 2,000 - and 3,000– in essence consists of the underlying value of the corporate shares. 
Today, there is an ocean of stock indexes for asset managers to license from the creators and then apply process and approaches for keeping track of the companies in the fiduciary portfolio, or to analyze and pick from the underlying issues for their portfolio. 

Alternative benchmarks and indexes may be dependent on market cap size and have variations in the index family to fine tune the analysis (think of the varieties of Wilshire, Russell, S&P Dow Jones, etc.). There has been a steady move of many asset managers to passive instruments, with this transition key benchmarks become an important tool for the analyst and portfolio manager.

One large-cap index really dominates the capital markets:  The S&P 500.

G&A Institute’s Annual S&P 500® Research
Almost a decade ago, the team at G&A Institute began gathering corporate reports to build our models and methodology for guiding client’s corporate disclosure and reporting -- and focusing especially on the structured reports of U.S. publicly-traded companies -- selected the universe of companies that the index creators include in the S&P 500 Index®.

Here’s why:  The S&P 500 Index is the most-widely-quoted index measuring the stock performance of the 500 largest investable companies listed on American stock exchanges.  Asset managers licensees like State Street, MCSI, Invesco Capital and London Stock Exchange Group use this index for their constructing ETFs and other investable products.
This universe of public companies provided for our team a solid foundation for tracking and analyzing the activities of these 500 companies as they began or expanded their sustainability reporting. In 2011, that first year. we found just about 20% of the 500 were publishing sustainability reports.

And here’s the dramatic news:
G&A's just-completed report shows 90% of the S&P 500 companies produced a sustainability report in year 2019!

Tracking the Trends
Over the decade of close tracking and analysis of the 500 companies in the index, the good news is we saw the number of reports steadily grow.  We charted the broad impact of these market-leading enterprises on such reporting frameworks and standards as the GRI; SASB as those standards evolved and matured and were adopted by the 500; CDP disclosure in structured reports; the adoption of UN Sustainable Development Goals (SDGs) as they were in some way a part of a company’s sustainability strategy (and subsequent reporting); and more recently,adoption of TCFD recommendations by corporate issuers in the U.S.

Starting with 2010 reporting, the first G&A analysis, we’ve shared the highlights of the research efforts.  Teams of talented, passionate and bright analyst-interns developed each year’s report (you can see who they are/were in G&A’s Honor Roll on our web site).  Most of the team members have moved on to career positions in the corporate, investment, public sector and NGO communities.

Download this year’s report, examining 2019 corporate sustainability reporting by the S&P 500 companies.

We’ve organized the deliverable for both quick scanning and concentrated reviewing.  Let us know if you have questions about the research results.  Stay tuned to G&A’s upcoming Russell 1000 Index® analysis of 2019 reporting.

This second important index/benchmark was created several decades ago by the Frank Russell Company and is now maintained by FTSE Russell (subsidiary of the London Stock Exchange Group) The largest companies by market cap companies are available as benchmarks for investors in the S&P 500 (largest cap) and for the next 500 in the Russell 1000.

The ripple effects of the S&P 500 companies and more recently some of the Russell 1000 companies on corporate sustainability disclosure and reporting is fascinating for us to track.  Many mid-cap and small-cap companies are now adopting similar reporting policies and practices.  Privately-owned companies are publishing similar reports.  All of this means volumes of ESG data and narrative flowing out to investors – and fueling the growth of sustainable investing.  We find this all very encouraging in our tracking of corporate reporting.

Top Stories

90% of S&P 500 Index Companies
Publish Sustainability Reports in 2019,
G&A Announces in its Latest Annual
2020 Flash Report   
Source: Governance & Accountability Institute, Inc. - G&A Institute announces the results of its annual S&P 500 sustainability reporting analysis. 90% of the S&P 500 published corporate sustainability reports, an all-time high!

Adding Important Perspectives to G&A’s S&P 500 Research Results

What is Greenwashing? The Importance of Maintaining Perspective in ESG Communications   
Source: AlphaSense, Pamela Styles principal of Next Level Investor Relations LLC - “Greenwashing” can generally be described as ‘the practice of only paying lip service to environmental, social and governance (ESG) factors with token gestures.’ In practice, greenwashing occurs when an organization presents...

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.

Upcoming Events

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G&A RESOURCE PAPERS

About Human Capital Management & Possible Related Disclosures that Might Be Mandated by the Securities & Exchange Commission

State Street Global Advisors (SSGA): The Important of the R-Factor

Climate-Related Corporate Risk Disclosures Resource Guide

Analysis Of The BRT Companies ESG Reporting Practices Resource Paper

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G&A RESEARCH

FLASH REPORT: 60% of Russell 1000® Are Publishing Sustainability Reports, G&A Institute’s 2018 Inaugural Benchmark Study Shows

FLASH REPORT: 86% of S&P 500 Index® Companies Publish Sustainability / Responsibility Reports in 2018

Learn More About G&A Research

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G&A IS THE GRI DATA PARTNER
FOR USA, UK & IRELAND

Sustainability Standard Setters & Policy Makers

• Promoting Clarity and Compatibility in the Sustainability Landscape GRI and SASB announce collaboration (Source: Globe News Wire)
• European flexible packaging industry agrees unified Sustainability Vision (Source: Dairy Reporter)
  
• Flavours and fragrance industries launch Sustainability Charter: ‘It establishes a framework, sets a bar and raises everybody’ (Source: Food Navigator)

JUMP TO MORE Sustainability Standard Setters & Policy Makers

ESG / Sustainable & Responsible Investment

• BlackRock punishes 53 high-emissions companies over climate inaction, puts 191 more on watch(Source: Edie)
• Explore 30 Years of ESG(Source: MSCI)

JUMP TO MORE ESG / Sustainable & Responsible Investment

Corporate Sustainability / ESG

• SAIC Report Highlights Sustainability, Social Responsibility(Source: Washington Exec)
• Cummins Releases 2019 Sustainability Progress Report and Special Report on the Impact of COVID-19 in 2020 (Source: Business Wire)
  
• Coca-Cola European Partners eyes plastic bottle recycling plant with CuRe investment (Source: Business Green)

JUMP TO MORE Corporate Sustainability / ESG

From the Agora: Consumers & Sustainability

• Survey: More Than Half of Sustainability Leaders Believe That Consumer Demand for Environmental Action Has Grown During COVID-19, and Many Think They May Lose Customers If They Don’t Meet Commitments (Source: Business Wire)
• Why We Can’t Shop Our Way to Sustainability (Source: Stanford Social Innovation Review)
• COVID-19 Has Impacted Consumer Awareness About Sustainability, Global Survey Reveals (Source: Vending Market Watch)

JUMP TO MORE Consumers & Sustainability

Global Sustainability : Forward Momentum!

• Ceres applauds new House climate action plan that would... (Source: Ceres)
• Ethiopia's River Nile dam: How it will be filled (Source: BBC)

JUMP TO MORE Global Sustainability : Forward Momentum!

Sustainability Data That Matters

• The Future of Sustainability Certification: Micro-Certification? (Source: Hospitality Net)

JUMP TO MORE Sustainability Data That Matters

The Sustainability Highlights eNewsletter is prepared by Governance & Accountability Instittute, Inc. based on continuous monitoring of trends and developments in Sustainability and ESG. Copyrights for other providers are noted where appropriate. Please credit the source if quoted. Content © 2009 - 2020 - All Rights Reserved.

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. For G&A's full range of services, click on each of the links: Sustainability / ESG Consulting Services, Communications & Recognition Services, Investor Relation Services. For more information, visit www.ga-institute.com or contact us at 646.430.8230 or info@ga-institute.com.