Assessing the quality of sustainability reporting: an alternative methodological approach

Against the background of the growing importance in corporate sustainability reporting, the Institute for Sustainable Management at the University of OAS in Aargau, North-Western Switzerland, instigated a research project in 2003. This represents one of the first attempts to perform a quantitative and qualitative analysis of corporate sustainability reporting in one country (Switzerland) and is the second and, at the time, most comprehensive national study worldwide on reporting practices. The object of this paper is to reflect the methodology of the Swiss study independent of other procedures used to-date. The extent to which the new methodological approach overcomes the weaknesses of other approaches will primarily be demonstrated. Secondly, the research team's findings from the results of the study and interviews with managers from 25 Swiss companies in connection with the study will be presented.     

The Monitoring,Evaluation, Reporting and Verification of Climate Change Projects

Because of concerns with the growing threat of global climate change from increasing emissions of greenhouse gases, the United States and other countries are implementing, by themselves or in cooperation with one or more other nations, climate change projects. These projects will reduce greenhouse gas (GHG) emissions or sequester carbon, and will also result in non-GHG benefits (i.e., environmental, economic, and social benefits). Monitoring, evaluating, reporting, and verifying (MERV) guidelines are needed for these projects to accurately determine their net GHG, and other, benefits. Implementation of MERV guidelines is also intended to: (1) increase the reliability of data for estimating GHG benefits; (2) provide real-time data so that mid-course corrections can be made; (3) introduce consistency and transparency across project types and reporters; and (4) enhance the credibility of the projects with stakeholders. In this paper, we review the issues involved in MERV activities. We identify several topics that future protocols and guidelines need to address, such as: (1) establishing a credible baseline; (2) accounting for impacts outside project boundaries through leakage; (3) net GHG reductions and other benefits; (4) precision of measurement; (5) MERV frequency and the persistence (sustainability) of savings, emissions reduction, and carbon sequestration; (6) reporting by multiple project participants; (7) verification of GHG reduction credits; (8) uncertainty and risk; (9) institutional capacity in conducting MERV; and (10) the cost of MERV.     

Building institutions based on information disclosure: lessons from GRI's sustainability reporting

Global Reporting Initiative (GRI) is the best-known framework for voluntary reporting of environmental and social performance by business worldwide. Using extensive empirical data, including interviews and documentary analysis, we examine GRI's organizational field and conclude that since its modest beginnings in 1999 GRI has been by several measures a successful institutionalization project. But the institutional logic of this new entity, as an instrument for corporate sustainability management, leaves out one of the central elements of the initial vision for GRI: as a mobilizing agent for many societal actors. This emergent logic reflects GRI's dominant constituency – large global companies and financial institutions and international business management consultancies – and not the less active civil society organizations and organized labor. We attribute these developments to factors such as building GRI within the existing institutional structures; the highly inclusive multistakeholder process; and the underdeveloped base of information users. From the institutional theory perspective, this case shows how the process of institutionalization is deeply affected by initial strategies of the founders, and how it reproduces existing power relations. From the governance perspective, this case leads us to question the power of commodified information to mobilize civil society and to strengthen governance based on partnerships.     

Pollution minimisation practices in the Australian mining and mineral processing industries

Research was conducted to identify some of the current pollution minimisation practices adopted in Australia's mining and mineral processing industries. Initially, 84 mining and mineral processing companies were approached for inclusion in the study, with request only made for information that was available to the company stakeholders and the wider general community. Among the responses received, BHP Billiton, BlueScope Steel, Newmont Australia Limited and AngloGold Australia provided the information requested and/or a substantial quantity of information through reports on their company website. Analysis of the data collected for these companies indicated that improvements were made, and that policies had been implemented over the previous few years. The pollution minimisation and policy practices adopted at the operations of these companies include environmental management systems, advanced pollution control technologies, environmental awareness training for employees, and requirement – from company stakeholders – for increased accountability of environmental impacts.     

Assessing non-financial reports according to the Global Reporting Initiative guidelines: evidence from Greece

In recent years a growing number of companies around the world have started reporting on issues other that those in the financial domain, in order to discharge their accountability efforts. While such non-financial accounting and reporting footprints, in terms of relevant policies and practices, are evident among all regions and such activities are becoming a universal trend, the level of uptake and diffusion varies from country to country. This paper contributes to the country-level analyses of non-financial reporting by assessing the quality and inclusiveness of triple-bottom-line reports published by companies operating in Greece. To accomplish this, a numerical scoring system was devised, based on the de facto global standard on corporate non-financial reporting, the Global Reporting Initiative guidelines. Overall findings reveal major gaps in the disclosing practices of Greek organizations and denote that there is much room for improvement in order to meet international standards and promote effective engagement with their stakeholders.     

Gold mining in Australia: linking historical trends and environmental and resource sustainability

The mining of gold has been and continues to be an important aspect of Australian industry. Gold mining moved quickly from fossicking and alluvial sources in the 1850's to hard rock mining. This paper presents, arguably for the first time, a detailed historical compilation of Australian gold mining production data. This data is then analysed in the context of sustainability, focussing particularly on mineral resource sustainability and the broader aspects of environmental impacts now commonly reported by some mining companies in annual sustainability performance reports. The key trends which are demonstrated by the data include a long-term decline in ore grade, increased open cut mining, substantive increases in tailings and waste rock production, as well as showing the impact of new technologies and economics on available gold resources. The available environmental data on material and energy inputs to and pollutant emissions from gold production is also presented, showing a clear sensitivity to ore grade. In terms of sustainability, these relationships raise significant issues such as increasing greenhouse footprint per unit gold produced, potential impacts on energy and water consumption, as well as overall gold resource sustainability. The paper presents a unique case study of the resource and environmental sustainability of the Australian gold mining sector with major implications for sustainability policy and reporting.     

The message and methods of ethical investment

This paper examines a high profile and often provocative segment of the financial industry: that of Ethical or Socially Responsible Investment. By offering an ethical or sustainable product which has the potential to influence so many stakeholders—the financial industry is in a unique position to guide change towards corporate sustainability. However, what message is ethical investment really giving to companies and the financial industry? Are ethical investors and their rating agencies capable of effectively influencing corporations towards more sustainable patterns of production and consumption; and are their approaches consistent with the principles of Cleaner Production? This paper first gives an overview some of the definitions ‘ethical investment’ and the scale of activities under this umbrella term. Then the actual screening methods and their application is examined. A typology of the different ethical mutual funds is given, and two cases of ethical funds are described (Robur’s Environmental Fund, and Sustainable Asset Management’s sustainability rating tool). Each are analysed in terms of their potential to either reveal or conceal cleaner production innovations by the firms they assess. In order to ascertain where Ethical Investment might lead companies, the effects of ethical investment on companies—and back on the asset management companies themselves is explored. A reflexive model of corporate and finance sector learning based on the ethical screens is proposed.     

Stakeholder evaluation of sustainable development in the life sciences industry

Corporate sustainable development (CSD) can help to force the life sciences industry (LSI) to move from responsibility towards accountability.In terms of sustainability issues, which currently affect and occupy the LSI and their stakeholders, one could speak of 4 generations:

• •The local side-effects of operations, production, distribution and use.
• •The effects and risks of the used and applied technologies and methods.
• •The affordability and access to essential available treatments and products.
• •The necessity and need for new essential products or treatments for neglected diseases.

In order to make corporations accountable, there have been many efforts in the field of evaluation. These efforts mostly remain very general. The problem is however that the different stakeholders have diverse understandings of the various sustainability issues. The paper proposes a 2-phased stakeholder-oriented evaluation method for evaluating CSD-strategies on specific sustainability issues of the LSI in Basel, Switzerland. During the first phase, corporate commitment is challenged against the stakeholders' expectations. In the second phase, relevant stakeholders evaluate the effective corporate performance against the corporate commitment.The evaluation method was extensively tested with the stakeholders of the LSI in 5 case studies on the 4 issue generations. The method turned out to work and delivered interesting insight into managing sustainability issues.     

Determinant factors of corporate environmental information disclosure: an empirical study of Chinese listed companies

In order to help understand the environmental disclosure mechanism from the corporate perspective, this paper identifies the determinant factors affecting the disclosure level of corporate environmental information on the basis of stakeholder theory, and gives an empirical observation on Chinese listed companies. The corporate environmental information disclosure (EID) level appears to be marginal in current Chinese context. Nearly 40% of the sampled companies opened no substantial environmental data to the public as could be seen from the content analysis of disclosed information. The present condition is that the EID strategy of Chinese listed companies is oriented to fill up the government's environmental concerns. The corporate EID effort is significantly relative to its environmental sensitivity (a proxy of the pressure from the government) and its size. The role of other stakeholders, like shareholders and creditors tested in this study in effecting the EID, is found to be still weak. Another interesting finding is that the sampled companies are selectively opening their environmental information. Companies operating in eastern coastal regions, where the economy has been relatively developed, are more likely to disclose emission-related data. The better the company's economic performance, the more information on environmental investment and pollution control cost is disclosed. More concerns of the firm's stakeholders on environmental issues shall be promoted in order to encourage Chinese enterprises to disclose more environmental information and accordingly become more proactive for improving their environmental performance.     

Using corporate social responsibility benchmarking framework to identify and assess corporate social responsibility trends of real estate companies owning and developing shopping centres

Shopping centres that include retail activities have come in for criticism as to their environmental, architectural and social impacts. However, the sector has been applying corporate social responsibility (CSR) practices. In an attempt to identify the best practices regarding CSR and trends therein we developed a CSR benchmarking of companies from the real estate sector owning and developing shopping centres. Based on information from websites, annual, environmental and sustainability reports, and customer services department’s information, in 2004 and 2010, a comparative CSR benchmarking was performed on 23 real estate companies with shopping centres based in Europe, China, Australia and the USA. The CRS benchmarking framework focused on reported CSR practices and included categories and sub-categories of evaluation in four domains: (1) external results, (2) internal results, (3) management processes and (4) learning and innovation. The framework was inspired by the sustainability balanced scorecard structure. The United Kingdom real estate sector’s companies studied did relatively well when evaluated by the framework used in this study. The highest ranked real estate companies applied sustainable or environmental buildings standards and did show a commitment to transparency and CSR disclosure. The positive evolution of CSR practices in the 23 companies studied in 2004 and 2010 may reflect efforts to improve competitiveness and the reputation of the companies with shopping centres through CSR initiatives.     

The determinants mostly disclosed by companies that are members of the Carbon Disclosure Project

Concerns about climate change as a result of anthropic actions have led to an increase in the volume of information disclosed about it in the reports of companies that are members of the Carbon Disclosure Project (CDP). In this context, the factors most disclosed remain obscure due to both the complexity of climate change impacts and the stakeholders’ different interests. This study aims to identify which factors are most disclosed in the reports of companies that are members of CDP. For this purpose, it is necessary to investigate if the factors indicated by managers and experts are the main ones disclosed in the reports of Brazilian companies that are members of CDP, as well as to identify which companies stand out in climate change disclosure based on these factors. To this end, 463 reports submitted by 48 companies between 2014 and 2016 were examined and 32 factors were investigated using the NVivo® software. Some companies submitted reports with unified titles, which reduced the sample. The results indicate that certain factors—prevention of pollution, prevention of loss, management of environmental assets, volume of greenhouse gas (GHG) emissions, and climate change strategy—account for 50.03% of the total volume of information disclosed about climate change. The main lesson learned from this research is that climate change mitigation strategy is strongly supported by the evidence of corporate annual reports, and it has relation with the following determinant factors: pollution prevention, loss prevention, environmental asset management, GHG emissions, and the strategy chosen by the companies to deal with climate change. Due to the low volume of research related to loss prevention and pollution prevention, we have identified that little attention has been paid to these items. Based on our results, we recommend that climate change mitigation strategies begin to consider these determinant factors in their structure because both have a strong influence in demonstrating how companies are managing these factors for stakeholders. Therefore, companies can benefit from this data to manage their resources for the maintenance of the social contract (legitimacy) through the factors most disclosed, especially companies with lower scores on the scale of ranking presented. Hence, stakeholders can have access to more information on strategies that mitigate climate change and help companies improve the disclosure of the actions that contribute to reduction of GHG emissions.     

From green product definitions and classifications to the Green Option Matrix

Hybrid cars, recycled products, photovoltaic cells, bioplastics: why so different products can be called ‘green’? Which practices companies willing to develop green products should implement? How companies can easily and effectively communicate to stakeholders the environmental features of their green products? This paper tries to answer these questions, by developing a Green Option Matrix (GOM), which characterizes green products and practices along different dimensions. This matrix is then used to analyze the different features of green products as well as related green practices developed by a sample of companies belonging to the Dow Jones Sustainability World Index (DJSWI). Relevant data are collected by means of content analysis of companies’ websites and sustainability reports. Green products and practices developed by each company in the sample are positioned in the matrix and results are presented and discussed for each industrial sector. Then, different sectors’ behaviors are compared. The proposed matrix can be used by companies as a market tool to analyze competitors’ green products and practices and as a communication tool to effectively communicate to stakeholders the specific green features of their products and practices.     

Best practices for corporate commitment to biodiversity: An organizing framework from GRI reports

Corporate operations can have significant impacts on biodiversity. Nevertheless, the literature has overlooked the analysis of the organizational practices underlying corporate commitment to biodiversity. The objective of this article is to contribute to this under-researched issue by shedding light on the best practices of biodiversity conservation of companies whose operations pose high risks to biodiversity. For this purpose, we carried out a systematic analysis of the sustainability practices reported by 163 mining and forestry companies whose operations pose high risks to biodiversity. The article proposes an organizing framework describing the main approaches and practices for corporate biodiversity management. The contributions and implications for managers, policy makers and other stakeholders are discussed.     

From the Whitehorse Mining Initiative Towards Sustainable Mining: lessons learned

Much debate has taken place within the mineral policy community about whether or not meaningful progress has been made towards more sustainable practices. This paper investigates the changing approaches towards sustainable development undertaken by the Mining Association of Canada (MAC) over a period of approximately 20 years. The analysis begins in the early 1990s when MAC initiated the Whitehorse Mining Initiative (WMI) and concludes in 2010 when the association was operating under a strategy entitled Towards Sustainable Mining (TSM). The goal is to consider the nature of the learning that has taken place towards sustainability within the mineral industry using the case of a leading national mining association. The investigation was undertaken through a literature review as well as key informant interviews with stakeholders affected by the Canadian Mining Industry. Findings suggest that MAC’s approach to sustainable development has shifted from an ambitious and holistic partnership involving a range of stakeholders to a focused, member-specific agenda that addresses a few performance issues. The transition to TSM was based on lessons learned through working with the WMI and subsequent efforts. It reflects broader corporate tendencies to address social and ecological issues through corporate social responsibility initiatives. The implications of these trends suggest that voluntary initiatives in and of themselves should not be expected to replace the comprehensive regulatory responsibilities historically provided by government.     

中国对外投资中的环境管理研究

自"走出去"战略实施以来,我国对外投资步伐明显加快,规模日益扩大,取得了显著成绩。随着全球环境问题频发,经济、贸易与环境的关系日益成为人们关注的焦点。我国"走出去"企业的数量大大增加,国际舆论开始关注中国企业在海外的环境行为。一些媒体对中国企业社会责任方面进行批评,个别媒体还存在恶意歪曲中国形象的嫌疑。通过对中国对外投资环境问题进行研究和反思,我们确实发现中国企业在海外可能存在着很大的环境风险。这些问题如不能很好地解决,将影响我国的国际形象,也影响我国"走出去"战略的实施。中国对外投资企业的环境行为需要相关政策进行引导,也需要配套的环境咨询和服务业的支持。我国针对对外投资的环境保护政策还存在缺陷,现行的与环境相关的政策在操作和执行层面仍有待加强,应尽快出台相应的指南来引导和规范企业在对外投资中的环境行为,防范环境风险。     

Analysing influencing factors of corporate environmental information collection,management and communication

Relevant and understandable environmental information about production and products is needed in any attempt to mitigate environmental impact from production, products, and consumption. This paper introduces an analytical framework for studying the drivers, barriers and enablers of corporate environmental information collection, management and communication. The framework is built up by two main parts. In the first, we sort out what corporate environmental information is and how to spot gaps in information collection, management and communication. The second part examines the stakeholders and company features that could constitute important influencing factors. The framework is intended to support qualitative and quantitative studies which aim to increase understanding of what shapes the flow of environmental information in companies and product chains.     

The measurement of corporate environmental performance and its application to the analysis of efficiency in oil industry

This paper addresses a measurement of corporate environmental performance, and its application to the analysis of efficiency in the petroleum firms. In order to measure firms' environmental performance, we suggest a framework called “Gscore” that consists of five categories, namely general environmental management (GEM), input, process, output, and outcome. Gscore is a proxy measure of corporate environmental performance based on voluntary environment, health, and safety (EHS) report and is calculated by aggregating the points of the above five-categories. We apply our measurement framework to the data of 39 firms' voluntary EHS reports which are available on the internet. Ten of them, on which efficiency analysis was conducted with Gscore, assets, employee, and profits, are in petroleum and refining industry. According to our results: (1) a gap is found between rhetoric and practical environmental management stemming from calculating the relation between GEM and data part in 39 EHS reports. (2) On the whole, EHS reports of petroleum firms have something in common, but there are significant differences in the type and amounts of disclosed data among the EHS reports. (3) From the results of efficiency analysis, it is found that the number of employee exerts a considerable influence on determining the relative efficiency of petroleum firms, then Gscore, profits, and assets in sequence. Furthermore, Exxon, Ashland, Phillips Petroleum, and ARCO are shown to be efficient among 10 petroleum firms.     

Corporate social responsibility in the mining industry: Exploring trends in social and environmental disclosure

In recent years, concerns about the sustainability and social responsibility (CSR) of businesses have become an increasingly high profile issue in many countries and industries, none more so than the mining industry. For mining, one outcome of the CSR agenda is the increasing need for individual companies to justify their existence and document their performance through the disclosure of social and environmental information. This paper explores recent trends in the reporting of such impacts and issues in the global mining industry. It offers a detailed review of the development of the media of social and environmental disclosure in the mining industry, and of the factors that drive the development of such disclosure. A temporal analysis of the recent trends in disclosure using a case study of the world's 10 largest mining companies is presented. Whilst there is evidence of increasing sophistication in the development of social and environmental disclosure, there is considerable variation in the maturity of reporting content and styles of these companies. The paper offers a simple classification of reporting companies, from ‘leaders’ to ‘laggards’. Stronger leadership and co-operation from the top reporting companies is necessary to support the laggards of the industry.     

Pilot project on sustainability management accounting with the Styrian automobile cluster

The paper is based on a project with the Styrian automobile cluster in Austria and selected member companies. In six companies, the environmental management costs, as well as further costs for health and safety, risk management and other social issues were assessed. Less tangible items and external effects are addressed. Starting with the efforts to assess the financial effects of the sustainability performance indicators provided by the Global Reporting Initiative (GRI) for sustainability reporting, the UN DSD (United Nations Division for Sustainable Development) method for environmental management accounting (EMA) was enlarged by several other cost categories. This paper describes these and the experiences from the pilot projects.The two major cost drivers are the purchase costs of non-product output and the costs related to lost working days because of sick leave and accidents and the overtime pay to make up for these lost working days. The work of the Environmental Health and Safety (EHS) department helps to reduce these costs. The cost assessment scheme allows one to better understand the relationships between costs for treatment of undesired effects due to unimplemented protection measures and lost material purchase value in comparison to the prevention costs, which mainly consist of the internal management departments and related external consultants.The assessment of sustainability management costs is of interest for organisations, which already publish a sustainability report and want to more accurately assess the financial effects of such aspects addressed via EMA. It is also useful for small and medium sized companies, which use the assessment as a starting point to shape their (EHS) system. The main benefits are more accurate data and better arguments for investment appraisal or performance indicators as well as improved consistency of information and management systems that should help them to improve their environmental, social and economic performance.