G&A Institute Update (Issue 1, August 2011): US Corporate Sustainability & Responsibility Reporting

G&A Institute closely monitors the sustainability reporting of US domestic corporations and the US subsidiaries of non-US companies.  (We monitor as well sustainability reports published by trade and professional associations, non-profits, government agencies, professional practices, universities, and various types of institutions.)

These reports may carry varying titles: “Sustainability Report,” (Ford Motor Company, its 11th report); “Corporate Responsibility,” (Intel), “Environmental Responsibility,” (Amgen), and “Corporate Citizenship” (Exxon’s latest report).

In the month of July we identified 17 reports published by US companies (with date stamps of 2010, or 2010/2011). We monitor these reports through our own network, and receive reports direct from companies.

Since its inception, the Global Reporting Initiative (GRI) has been the de facto global standard for corporate reporting. The number of US companies publishing reports following the comprehensive GRI Framework (the principles for disclosure and performance reporting) has been increasing. GRI reports have steadily increased overall since 2000; the 2010 overall increase in reporting was 22%, according to GRI.  For North America, there was a 53% increase in reporting in Canada and a 22% increase in the United States; the USA tops the list (of the Top 10 countries by number of reports).

Almost 20% of the Fortune 500 companies – 1-in-5 large-cap companies -- have now issued sustainability reports.  Small and Medium Enterprise (SMEs) reporting has steadily increased over the past decade as well.

The GRI Framework sets out the principles and Performance Indicators that organizations can use to measure and reports on their economic, environmental and social performance.

Reflecting the continuing embrace of the GRI Framework by American corporations, the following 17 companies published reports in July 2011; the Application Level of the report is indicated where the company has elected to include this information:

GRI FRAMEWORK FOLLOWED DECLARED LEVELS 

A LEVEL REPORTS

• Hess Corporation (Level: A+)

• Constellation Energy (A)

• General Electric (A)

B LEVEL REPORTS

• Air Products (B)

• Baxter International (B)

• Best Buy (B)

• International Paper (B)

• Owens Corning (B)

• US Postal Service (B) – roughly comparable to a private sector company; complies with Sarbanes-Oxley responsibilities

C LEVEL REPORTS

• El Paso Corporation (C)

• Marathon Oil (undeclared level – company followed guidelines)

• Marsh & McLennan (undeclared level – followed guidelines)

Important Note: 
The level of the report (A,  B, C) indicates the scope and extent of disclosure and selection of performance indicators and other factors. This is not a “grade” assigned to the report by GRI. The level is to be viewed as a description of the scope of the report—what is included, what is not. The more disclosure and inclusion of key indicators, the higher possible the level. The plus sign (+) indicates that an independent third party Assurance Provider has checked the report.

REPORTS THAT REFERENCED GRI FRAMEWORK

• Bank of America

• Coca Cola Company

• Marsh & McLennan

JULY NON-GRI CORPORATE SUSTAINABILITY REPORTING 
No reference to GRI

• Entergy

• Mohawk Industries