As more companies seek to measure and report their impacts on society, both GRI and BITC have issued new lists of indicators. But are these helpful guidelines or unworkable standards?
Aviva, HBOS and the DTI are sponsoring the new Corporate Responsibility Index from Business in the Community. On September 23, FTSE 350 companies, equivalent internationally listed groups and BitC national members were invited to participate by completing an online questionnaire. The index is designed to measure a company’s integration of corporate responsibility within core business practices, and its management performance across the key areas of environment, workplace, community and marketplace. Endorsed by the Accounting Standards Board, the NAPF, the ABI and the CBI, the index aims to allow companies to compare their processes and performance against those of others in their sector. The deadline for completing the survey is November 15, and results will be published on March 11. The Index incorporates the 7th annual Business in the Environment Index, and offers companies the option of only completing the BiE index, or being reported in both indices.
The Index is one of two reporting initiatives being developed by BitC, the other being the complementary Corporate Impact Reporting Initiative, which uses a website to report companies’ actual performance against 55 performance indicators. Twenty leading companies are involved in testing and reporting against the indicators on the web site. Particpants include BAA, BUPA, Coca-Cola, Jaguar, LE Group, Marks & Spencer, Severn Trent, Thames Water, United Utilities and Zurich. Contact Caroline Cook (Corporate Responsibility Index) or Katherine Sharp (Corporate Impact Reporting), BitC, on 0870 600 2482 (http://www.bitc.org.uk).
The Global Reporting Initiative published its new set of sustainability reporting guidelines on August 31, the result of two years of testing and revision. The new version includes a significant development of social and economic indicators, bringing the total including environment to more than 150, split between ‘core’ and ‘additional’. Also new is the requirement to include an index that allows readers to track content and compare reports more readily. Companies wishing to state that they are reporting “in accordance” with the guidelines must now address all core indicators, describe management structures and provide a CEO certification.
Underpinning GRI’s evolution into an independent institution, Ernst Ligteringen, formerly of Oxfam, was named as the new chief executive of the GRI, with Paul Hohnen from Greenpeace as vice-president of strategy. The secretariat has relocated from Boston to Amsterdam. Contact Ian Graham, GRI, on 00 31 20 531 0000 (http://www.globalreporting.org) Scottish Power tops the chart of Scotland’s most transparent corporate social and environmental reporters, closely followed by Abbey National Life, Scottish Mutual Assurance and British Energy, according to research by the Centre for Human Ecology. Based on GRI’s criteria for transparency, the survey finds that only seven of Scotland’s largest 50 companies score more than 40 out of a possible 106 points. Contact Osbert Lancaster, CHE, on 0131 624 1976 (http://www.che.ac.uk)
Eight out of ten (79%) business leaders and opinion formers believe that companies should measure the environmental performance of their suppliers, according to a survey in August by Trucost, the environmental rating agency. However, two thirds (67%) admit they would not actually change suppliers if they were found to be damaging the environment and half say they spend too much time filling in environmental questionnaires. Contact Simon Thomas, Trucost, on 0870 607 2211 (http://www.trucost.com)
The Institute for Social and Ethical Accountability has been appointed by the Financial Times to assist its competition to identify the best workplaces in the UK, part of an EU-wide survey examining life-long learning, gender equality and promotion of diversity. Contact Madeleine Mauwer, Accountability, on 020 7549 0400 (http://www.greatplacetowork.co.uk)
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