December 21, 2012

Dramatic Rise in ESG Reporting

According to analysis just released by the Governance & Accountability Institute,
there has been a dramatic increase from 2010 to 2011 in the number of the largest
U.S. companies issuing ESG, CSR or Sustainability reports. In the 2011 analysis, 53%
of S&P 500 and 57% of Fortune 500 companies were reporting on their Environmental,
Social, and Governance (ESG) impacts, making non-reporters the minority. In the
2010 analysis, just 19% of S&P and 20% of Fortune 500 companies reported.

Other findings included:

  • More corporate managers and boards are recognizing the benefits of measuring,
    managing and disclosing their ESG strategies and performance.
  • The majority of S&P 500 and Fortune 500 companies that report use the
    Global Reporting Initiative Framework.
  • Companies that report on their sustainability strategies, initiatives, programs and ESG performance appear more likely to be selected for key sustainability reputation lists; to
    be ranked higher by sustainability reputation raters and rankers; and to be selected
    for inclusion on leading sustainability investment indices.
  • Companies that are measuring and managing their sustainability issues appear to
    perform better over the long term in the capital markets.