The big names are still winning the awards, but more and more companies of all sizes are now
issuing social and environmental reports.
Co-operative Bank and Shell top again…
The Co-operative Bank and Shell are overall winners of this year’s environmental reporting awards run by the Association of Chartered Certified Accountants, announced on March 23. Construction company, Carillion, was the best first-time reporter, while Anglian Water, BP, British Airways and BT all won awards for continued excellence. Sixty companies entered the scheme (up ten times over the last decade). Environmental reporting trends noted by the judges include:
• more first time reporters;
• more use of the internet;
• more varied information about financial implications – costs and benefits of environmental measures;
The Co-operative Bank also won the ‘best social report’ award from the combined AccountAbility and ACCA UK Social Reporting Awards, now in their second year. Shell and BP are joint runners-up, with Camelot winning praise for its first social report. The Co-op Bank and Shell were joint winners last year. There were 25 entrants, double last year’s, and the results were announced March 8. Contact Kay Sexton, AccountAbility, on 020 7407 7370 (http://www.accountability.org.uk)
Twenty-two new reporters
Twenty-two companies have agreed to publish their first environmental reports after pressure from the UK government’s environment minister, Michael Meacher MP. The new reporters include phone companies Orange and Vodafone, financial service companies HSBC Bank, Schroders, Standard Chartered Bank and Zurich Financial Services, along with Marks and Spencer, Smiths Industries and Great Universal Stores. Meacher wrote last year to the 30 FTSE 100 companies at the bottom of a survey on environmental reporting by the Pensions and Investment Research Consultants (PIRC). Companies yet to respond positively include Reed Elsevier, Reuters and Sage. Announcing the news on February 6, the minister said he hoped another 20 or so non-reporters in the FTSE 100, to which he had not yet written, would rise to the challenge. Contact DETR on 020 7890 3000 (http://www.detr.gov.uk)
Thirty-one companies join GRI
Procter & Gamble, Rio Tinto, Renault, Texaco, Vivendi and Ford are among 31 companies agreeing to review new sustainability reporting guidelines drawn up by the Global Reporting Initiative. Convened by the Coalition for Environmentally Responsible Economies in partnership with the United Nations Environment Programme in late 1997, GRI produced draft reporting guidelines for companies in March 1999. Twenty-one companies tested the original guidelines, which were reissued in June 2000. Contact Jonathan Lash, GRI on 00 1 617 266 9384 (http://www.globalreporting.org)
More scrutiny of wider company risks
Companies must provide more information about the risks they face on issues such as the environment and employment standards, says the Association of British Insurers. On March 29, it issued guidelines for its 400 members to help them quiz the companies in which they hold stakes. The guidelines, still in draft and to be implemented next year, ask companies to state in their annual reports whether the Board takes account of social, ethical and environmental matters, and whether it has identified and assessed the related risks to the company’s value. Contact ABI on 020 7600 3333 (http://www.abi.org.uk)
ABB publishes new social policy
ABB, the engineering firm involved in controversial dam construction, is implementing a new 13-point social policy, extending its existing environment sustainability approach. Published in February, it covers human rights, children and young workers, employee rights and consultation, health and safety, suppliers, community involvement and business ethics. The company has pledged to undertake a stakeholder review and develop social indicators to help implement it. Contact ABB on 00 41 1317 7834 (http://www.abb.com)
news in brief
• The national lottery operator, Camelot, which successfully rebid for its licence, published its Social Report 2000 on March 23. Described as ‘interim’, it builds on the previous year’s report by including the environment but not as detailed stakeholder consultation. Contact Camelot on 020 7839 6051 (http://www.camelotplc.com)
• Rio Tinto has published its social and environmental review for the year 2000. A separate community relations report is also available. Contact Andrew Vickerman, Rio Tinto, on 020 7930 2399 (http://www.riotinto.com)
• Shell issued its fourth annual People, planet and profits report at the start of April, presenting a significantly shorter account this year. Contact Jo Chandler, Shell, on 020 7934 1234 (http://www.shell.com)
Provident Financial reports on its community investment programme in Working in partnership with communities, including some results from its initial environmental review. Contact Brent Shackleton, Provident Financial, on 01274 731111 (http://www.providentfinancial.com)
Comment
Ten years of environmental reporting awards, two of social reporting, and our bookshelves at Community Affairs Briefing are already groaning under the weight of prize winning publications. What does it all mean?
First, it is good to see the French, Germans and Japanese well represented in GRI’s latest recruits – not just the Anglo-American ‘usual suspects’. Second, badgering by government ministers does have an impact. FTSE 100 companies without an environment report are now an endangered species. The prime minister added his voice at the end of last year, extending the call to all FTSE 350 companies.
Third, looking forward, the issue is no longer whether to report, but what to put in it – and current reports have several weaknesses. Pages about performance are often meaningless without benchmarks. They may both be award winning companies, but Shell’s accident rate from oil rigs simply can’t be compared with the Co-operative Bank’s computer department. So we need small groups of companies from the same industry group working together on making the numbers meaningful.
Another weakness is that few of the current reports go much beyond showing their own impact is not all bad, indeed is improving over time. Too few companies succeed in making the case for their very existence (as providers of essential goods and services) nor presenting the benefits of the free trade system. Yet the debate has moved on from individual instances of bad behaviour to the very nature.
COMMENT:
Ten years of environmental reporting awards, two of social reporting, and our bookshelves at Community Affairs Briefing are already groaning under the weight of prize winning publications. What does it all mean?
First, it is good to see the French, Germans and Japanese well represented in GRI’s latest recruits – not just the Anglo-American ‘usual suspects’. Second, badgering by government ministers does have an impact. FTSE 100 companies without an environment report are now an endangered species. The prime minister added his voice at the end of last year, extending the call to all FTSE 350 companies.
Third, looking forward, the issue is no longer whether to report, but what to put in it – and current reports have several weaknesses. Pages about performance are often meaningless without benchmarks. They may both be award winning companies, but Shell’s accident rate from oil rigs simply can’t be compared with the Co-operative Bank’s computer department. So we need small groups of companies from the same industry group working together on making the numbers meaningful.
Another weakness is that few of the current reports go much beyond showing their own impact is not all bad, indeed is improving over time. Too few companies succeed in making the case for their very existence (as providers of essential goods and services) nor presenting the benefits of the free trade system. Yet the debate has moved on from individual instances of bad behaviour to the very nature of global capitalism.
COMMENTS