Sustainability reporting is not sufficiently consistent or transparent and provides too little information, according to a survey conducted by the European Sustainable Investment Forum (Eurosif) and the Association of Chartered Certified Accountants (ACCA). While 89 percent of respondents think CSR and sustainability reports are essential or of high importance, 78 percent said levels of disclosure are still inadequate. The survey also suggests investors are frustrated by companies' failure to link non-financial information to business strategy and risk or provide quantitative key performance indicators (KPIs). François Passant, Executive Director of Eurosif, said there is currently a “disconnect” between companies non-financial reporting and investors' expectations. (BusinessGreen)
Environment
US states to require insurers to reveal climate risks
The Connecticut and Minnesota Departments of Insurance have joined California, New York and Washington in requiring insurers paying out more than $100m a year to disclose their climate-related risks. The Climate Risk Survey was adopted in 2009 by the National Association of Insurance Commissioners, but the remaining 45 states have so far declined to administer the survey. Just one-eighth of US insurers surveyed by sustainability leadership advocate Ceres have comprehensive climate change strategies. Mindy Lubber, Ceres president, criticised the “highly uneven response” of insurers to the dangers of climate change, adding that the insurance industry “has a huge opportunity today to lead in tackling climate change risks”. (Eco-Business; Environmental Leader)
Corporate Reputation
GSK determined to “root out corruption”
GlaxoSmithKline has admitted that some of its senior Chinese executives broke the law in a £320m cash and sexual favours bribery scandal. In a statement, Abbas Hussain, the drug maker's head of emerging markets, apologised to the Chinese authorities and promised the company was taking the charges “extremely seriously”. “Certain senior executives of GSK China who know our systems well appear to have acted outside of our processes and controls which breaches Chinese law,” said Hussain. “I want to make it very clear that we share the desire of the Chinese authorities to root out corruption wherever it exists.” Also this week, the Shanghai HQ of AstraZeneca, another UK pharmaceutical company, was raided by Chinese police. (Guardian; The Times*; GSK; Independent)
UBS to pay $746m over alleged loans mis-selling
UBS is set to pay more than SFr700m ($746m) to settle US claims relating to the alleged mis-selling of mortgage-backed securities in the run-up to the financial crisis. The Swiss lender is one of 18 banks against which the Federal Housing Finance Agency has filed cases, as it seeks to recoup money owed to government-controlled housing giants Fannie Mae and Freddie Mac following their near-collapse in 2008. The FHFA alleged that UBS had misrepresented the quality of loans underlying around $6.4bn of residential-mortgage-backed securities in which Fannie Mae and Freddie Mac had invested between September 2005 and August 2007. (Financial Times*)
Responsible Investment
Online platform allows social investors to compare social enterprises
The Royal Bank of Scotland’s (RBS) SE100 Index is launching a new service that will allow social investors to track the financial, social and environmental performance of social enterprises online. The index, originally created by social innovation agency Matter&Co in partnership with RBS four years ago, ranks social enterprises according to their financial performance and their positive social or environmental impact. Organisations that join will now be able to see how they compare to others in their region or business sector through up-to-date statistics. Top performers in sustainable growth and social impact will get the chance to claim a share of a £25,000 prize fund at the RBS SE100 Annual Awards in November. (Blue & Green Tomorrow; SE100)
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