<strong>Corporate</strong> <strong>Susta<strong>in</strong>ability</strong> <strong>Disclosure</strong> Practices <strong>in</strong> Emerg<strong>in</strong>g <strong>Markets</strong>Figure 6. Number of Companies Referenc<strong>in</strong>g GRI and The Global CompactSource: UNCTAD20 - Copyright © 2009 Social Investment Forum, Wash<strong>in</strong>gton, DC
<strong>Corporate</strong> <strong>Susta<strong>in</strong>ability</strong> <strong>Disclosure</strong> Practices <strong>in</strong> Emerg<strong>in</strong>g <strong>Markets</strong>IV. Comparisons to other StudiesA. Developed CountriesWhile susta<strong>in</strong>ability report<strong>in</strong>g practices among the 100 emerg<strong>in</strong>g market companiesanalyzed for this report did not run deep, their performance <strong>in</strong> this area places them not farbeh<strong>in</strong>d, and <strong>in</strong> some cases ahead of, developed markets. Although few of these effortswould qualify as a full-blown susta<strong>in</strong>ability report by most estimates, 96 percent of theemerg<strong>in</strong>g markets companies reviewed for this paper reported on at least one ESG<strong>in</strong>dicator. However, as noted, only 39 percent issued data on the environment, and only 24percent reviewed key social <strong>in</strong>dicators such as occupational <strong>in</strong>juries and illnesses.Furthermore, only 20 of the 100 companies studied made reference to the GRI’s guidel<strong>in</strong>es,and only 14 of those declared report<strong>in</strong>g <strong>in</strong> compliance with the GRI’s guidel<strong>in</strong>es andsupplied a GRI Index.Still, emerg<strong>in</strong>g markets companies held their own with, and <strong>in</strong> a few cases were moretransparent than, firms from developed countries. As tracked by <strong>Corporate</strong>Register.com,more than two thirds of the constituents <strong>in</strong> the Global FT 500 produce susta<strong>in</strong>abilityreports. 17 In addition, its recent report found that the percentage of these companiesfollow<strong>in</strong>g GRI’s report<strong>in</strong>g standards has <strong>in</strong>creased <strong>in</strong> recent years, but is still only close toone third today. Similarly, KPMG reported that 80 percent of the Global Fortune 250 nowreleases susta<strong>in</strong>ability <strong>in</strong>formation, up from 50 percent <strong>in</strong> 2005. 18 Among the world’slargest exchanges, GRI found that 64 percent of Germany’s DAX 30, 48 percent of France’sCAC 40 and 22 percent of the United K<strong>in</strong>gdom’s FTSE 100 issued susta<strong>in</strong>ability reports us<strong>in</strong>gthe G3 Guidel<strong>in</strong>es, compared with only 13 percent of the United States’ S&P 500. 19B. Emerg<strong>in</strong>g <strong>Markets</strong>As mentioned earlier, the EMDP conducted its own orig<strong>in</strong>al research <strong>in</strong> 2007 and 2008 andreleased reports on susta<strong>in</strong>ability report<strong>in</strong>g trends <strong>in</strong> emerg<strong>in</strong>g markets <strong>in</strong> January 2008 andMarch 2009. 20 Both studies, like this one, reviewed only publicly available <strong>in</strong>formation. Allthree reports have small sample sizes of the largest companies, mak<strong>in</strong>g it difficult toextrapolate f<strong>in</strong>d<strong>in</strong>gs beyond this top tier of companies, because larger companies are17 <strong>Corporate</strong>Register.com. (March 2009). CRReport<strong>in</strong>gAwards ’08, Global W<strong>in</strong>ners & Report<strong>in</strong>g Trends.Retrieved June 15, 2009, from http://www.corporateregister.com/pdf/CRRA08.pdf.18 KPMG. (October 2008). KPMG International Survey of <strong>Corporate</strong> Responsibility Report<strong>in</strong>g 2008. RetrievedJune 16, 2009, from http://www.kpmg.com/SiteCollectionDocuments/International-corporateresponsibility-survey-2008_v2.pdf.19 Global Report<strong>in</strong>g Initiative. (July 15, 2009). “Number of companies worldwide report<strong>in</strong>g on theirsusta<strong>in</strong>ability performance reaches record high, yet still a m<strong>in</strong>ority.” Retrieved July 16, 2009, fromhttp://www.globalreport<strong>in</strong>g.org/NewsEventsPress/PressResources/PressRelease_14_July_2006_1000GRIReports.htm.20 EIRIS. (March 2009). “A Review of ESG Practices <strong>in</strong> Large Emerg<strong>in</strong>g Market Companies.” Wash<strong>in</strong>gton, DC:Social Investment Forum and Susta<strong>in</strong>able Investment Research Analyst Network.KLD Research & Analytics. (January 2008). “<strong>Susta<strong>in</strong>ability</strong> Report<strong>in</strong>g <strong>in</strong> Emerg<strong>in</strong>g <strong>Markets</strong>: An analysis ofthe susta<strong>in</strong>ability report<strong>in</strong>g <strong>in</strong> selected sectors of seven emerg<strong>in</strong>g market countries.” Wash<strong>in</strong>gton, DC:Social Investment Forum and Susta<strong>in</strong>able Investment Research Analyst Network.December 2009 - 21