Nearly every Global Fortune 250 (G250) company now reports its corporate responsibility activity, while reporting by pharmaceuticals, consumer markets, and construction industries more than doubled since KPMG International last conducted its global survey in 2008.
In what KPMG believes to be the most comprehensive surveys of corporate responsibility (CR) reporting ever published, the KPMG International Survey of Corporate Responsibility Reporting 2011 reviewed trends of each of the G250, as well as 3,400 companies worldwide, representing the national leaders in 34 countries and 15 industry sectors.
The survey found that CR reporting is now undertaken by 95 percent of the G250, while the largest 100 companies (N100) in each country surveyed increased reporting by 11 percent since 2008, to 64 percent overall, with developing nations showing fast uptake.
Almost half of the G250 companies report gaining financial value from their CR initiatives. In the absence of a regulatory global sustainability reporting standard, the drive for consistency and accessibility to quality data was highlighted in the findings. The Global Reporting Initiative (GRI) Sustainability Reporting Guidelines are used by 80 percent of the G250 and 69 percent of N100 companies and is gaining widespread adoption as the de facto reporting standard.
Wim Bartels, Global Head of KPMG’s Sustainability Assurance said: "The global momentum in corporate responsibility demands both higher quality CR information and greater use of assurance to maintain standards and stakeholder confidence."
“Unlike financial reporting, the disclosure of sustainability metrics to the market is largely unregulated. Restatements are four times higher compared to financial reporting and demonstrate that CR reporting has some way to go.”
Reporters that engaged formal assurance professionals were twice as likely to restate their reports as those without, demonstrating that assurance providers are demanding higher quality data, also signifying the need for increased focus on internal processes.
“This survey shows almost half of the G250 companies report gaining financial value from their CR initiatives. CR has moved from being a moral imperative to a critical business imperative. The time has now come to enhance CR reporting information systems to bring them up to the level that is equal to financial reporting, including a comparable quality of governance controls and management,” urged Mr. Bartels.
Further figures with respect to assurance are:
Mr Bartels said that when it comes to CR reporting uptake, size matters. “The findings show that bigger companies are twice as likely to report as those with revenues under U.S. $1 billion. This also presents an opportunity for smaller companies to leverage the benefits of CR reporting as a financial and reputational differentiator,” said Mr Bartels.
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About the Survey
The KPMG International Survey of Corporate Responsibility Reporting 2011 was designed to examine reporting trends among the world’s largest companies. It is the seventh in a series conducted by KPMG and various partners since 1993 and is issued every three years. Thirty-four of KPMG’s member firms participated in this study including: Australia, Brazil, Bulgaria, Canada, Chile, China, Denmark, Finland, France, Germany, Greece, Hungary, India, Israel, Italy, Japan, Mexico, New Zealand, Nigeria, Portugal, Romania, Russia, Singapore, Slovakia, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, Ukraine, The Netherlands, United Kingdom, and the United States. Analysts searched only publicly available information such as websites, corporate responsibility reports, and financial reports, and collected information on over 34 data points from each company associated with corporate responsibility reporting, standards, process, drivers, and issues. The sample included the Global Fortune 250 (2010), and the 100 largest companies by revenue from 34 countries.
Global Media Relations Director, Climate Change & Sustainability, KPMG
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KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with nearly 11,000 partners and staff. The UK firm recorded a turnover of £1.6 billion in the year ended September 2010. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 150 countries and have more than 138,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.
This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.