Trends in Corporate Responsibility Reporting

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KPMG has been surveying Corporate Responsibility (CR) reporting since 1993. This global survey is conducted every three years - the most recent report was issued in 2008. The survey analyses trends in CR reporting of the world's largest corporations, including the top 250 companies of the Fortune 500, the global top 250 (G-250), and the top 100 companies in 16 countries.

In 2008, KPMG’s International Survey of Corporate Responsibility Reporting found that:

Corporate responsibility reporting has gone mainstream - nearly 80% of the largest 250 companies worldwide issued reports, up from about 50% in 2005
Reporting is now the norm, not the exception, among the world's largest companies.
Reporting is more likely to occur within the context of an overarching strategy and management system.
The GRI Guidelines are used by the majority of companies and shows that this has become a leading standard for reporting.
Stakeholder engagement is an area that could be strengthened.
Corporate governance: Although 92% of G-250 companies disclose a corporate governance code of conduct or ethics, only 59% report on incidents of non-compliance with the code.
Supply chain: Nearly all G-250 companies have a supply chain code of conduct, but only half disclose the details of how it is implemented and monitored.
Climate change: While 62% of G-250 companies disclose information about climate risks, 69% of N-100 companies do not. Understanding the risks starts with understanding the footprint, a large part of the G250 (41%) need to develop this. Carbon footpring reporting is focused largely on own operations.
Formal assurance: Formal third-party assurance of G-250 reports jumped from 30% to 40% in the past three years, and the trend is similar at the national level with 39% of N100 reports containing formal assurance.
Third-party commentary: 27% of reports included other types of third-party commentary, such as stakeholder panels or subject matter expert statements.
Providers: Major accountancy organisations are leading providers of assurance in corporate responsibility reporting.
Standards and quality: The consistency and quality of assurance approaches is demonstrated by an increase in the use of standards.

"We cannot solve the problems of the world today by thinking the same thoughts that created the problems in the first place."
- Albert Einstein

Sustainability reporting in South Africa

KPMG conducts a biennial survey of South African companies to assess the level of compliance with relevant sustainability reporting requirements and guidelines. The last survey was completed in 2006. It covered 141 companies listed on the JSE All Share Index.

The survey takes into account the latest developments in international sustainability reporting. It also takes into account South African requirements and guidelines such as the King II Guidelines and the relevant Broad-based Black Economic Empowerment (BBBEE) Codes of Good Practice and industry charters.

How well are companies in South Africa doing? The report shows:

86% of companies in South Africa include some level of sustainability reporting in their annual reports or issue a stand-alone report. This reflects the influence of the King Code for Corporate Governance (King II), which recommends reporting on sustainability and is a listing requirement of the JSE.
Very few companies (15%) seek assurance of their sustainability reports. In by far the majority of cases, companies that seek assurance are in the mining and finance sectors, 75% of which operate in international markets or are owned by non-South African companies.

Since 2005, Ernst & Young South Africa, in conjunction with the University of Johannesburg, have presented awards for ‘Excellence in Sustainability Reporting’.

The 2009 winner of the Ernst & Young Excellence in Sustainability Reporting awards.

Another key area for consideration is the Carbon Disclosure Project (CDP), which measures and analyses the climate change disclosure practices of the Top 40 JSE companies. For more detailed information, visit www.nbi.org.za