University of Vaasa - Vaasan yliopisto

B2. Knowledge and
development
B3. Occupational
health and safety
B4. Equal
opportunities
employees
13. Employee turnover
14. Age structure
15. Redundancies
16. Percentage of
employees with regular
development discussions
17. Training days
18. Lost time due to
injuries. The frequency of
injuries
Human capital value and
competence development
Cost of lost days
19. Absence rate
20. Gender structure Employee satisfaction
360
Based on these 20 performance indicators, we reviewed the sustainability reports of
18 listed Finnish companies from the year 2006 in order to see whether they provide
an analysis of the financial value drivers behind sustainability performance or
expressed sustainability information in financial terms. We ascertained that none of
the companies provided directly this kind of information or analysis in their
sustainability reports. The reports fail to make a link between a company’s
sustainability strategy and performance and its overall business strategy and
performance. They also fail to explain how sustainability trends and drivers are
linked to market factors driving corporate strategy and how these trends affect the
company’s financial outcomes.
The reports are characterized by an absence of discussion on financial value analysis.
Relevant sustainability data is scattered and therefore difficult to use for valuation
purposes. This is partly explained by the fact that sustainability reporting practices
are in an early, developing, stage of their development and reporting
recommendations in this area are not yet fully implemented and integrated in
companies’ operations.
Our sample gave additional evidence that the current level of sustainable reporting is
clearly not comprehensive enough for valuation purposes. In other words, in terms of
our three-phase classification, firms are, at best, in phase two. In the next section, we
display three examples of how information disclosed in phase two can be developed
further to become phase three information, where GRI is integrated into external
reporting and internal performance management purposes.