Articles

Rise in environmental reporting
Financial Times - Jul 29, 2002 By Alison Maitland

The number of large companies reporting on their environmental and social performance has risen sharply amid growing pressure for legislation to force corporate disclosure.

Fifty of the country's 250 largest companies reported for the first time in 2001/2, against only 18 new reporters the previous year.

The data come from a study to be published this week by SalterBaxter, a design and communications consultancy, and Context, a corporate social responsibility consultancy.
"The take-up of reporting in the last year is quite remarkable," said Nigel Salter, director of SalterBaxter. "Industries such as media that regarded themselves as not really affected have shifted all of a sudden. Our research shows that many more companies will have reported by next year."

The research found that 103 of FTSE 250 companies produced substantial environmental and/or social reports - most of them separate publications from the annual report. But 87 companies had no more than short notes in the annual report and the rest provided limited data with no detail.

Four companies - EasyJet, Emap, Fitness First and Minerva - said nothing on social, environmental or ethical issues, according to the report, which used a cut-off date for inclusion of May 13. Fitness First and Minerva are outside the FTSE 250, but were included because the survey excludes investment trusts.

The increase in voluntary reporting comes as pressure grows from politicians and campaign groups for compulsory disclosure of non-financial performance.

The government has indicated that it may legislate if large companies fail to report voluntarily. Campaign organisations including Amnesty International, New Economics Foundation and Friends of the Earth recently backed a private member's bill to make big business more accountable.

Mervyn Pedelty, chief executive of the Co-operative Bank, this month called for legislation on reporting to help restore public trust in business.

Peter Knight, director of Context, said a CSR report was fast becoming a "must-have" business tool. "But the momentum will only be sustained if companies are serious about reporting both good and bad news."

External verification is important in improving the credibility of reports. But only 36 of the FTSE 250 have had their environmental and social reports independently audited. Directions 2, available free from info@econtext.co.uk or info@salterbaxter.com
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