Just three per cent of the world's large listed companies report on all basic sustainability metrics

GENEVA, Oct. 14, 2014 /CNW/ - A study has revealed that only three per cent of the world's largest listed companies* report on all basic sustainability metrics.

In their third annual study, "Measuring Sustainability Disclosure: Ranking the World's Stock Exchanges", investment advisory and research firm Corporate Knights Capital researched how well global stock exchanges encourage listed companies to disclose basic corporate responsibility data.

Corporate Knights Capital analysed the extent to which the world's publicly traded companies are disclosing the seven basic 'first-generation' metrics: employee turnover, energy, greenhouse gas emissions, injury rate, payroll, water consumption and waste. 

Just over a third of large listed companies (39%) report on the amount of greenhouse gases they are emitting, but only a quarter disclose their water consumption (25%) and just 12 per cent report on their rate of employee turnover.

The study also found that although the number of large companies disclosing basic sustainability indicators is increasing, the rate of uptake is flatlining. For example, the percentage of large listed companies that disclosed their energy use increased by 88 per cent from 2008 to 2012 but only by five per cent from 2011 to 2012. There is a similar slowdown in reporting occurring on the other sustainability indicators.

The study ranks the world's stock exchanges on sustainability reporting performance.  It reveals that:

• The Helsinki Stock Exchange was the top-ranked exchange, moving up from second position in last year's assessment.
• The Euronext Amsterdam took second spot, followed by the Johannesburg Stock Exchange, the only stock exchange in the top ten based in an emerging market.
• This was followed by Euronext Paris and the Copenhagen Stock Exchange. The London Stock Exchange is ranked ninth – the largest exchange inside the top ten – climbing from eleventh place over the past three years.
• North American exchanges are noticeably absent.

The study was prepared with the support of Aviva plc, Standard & Poor's Ratings Services and the Association of Chartered Certified Accountants (ACCA).

Commenting on the study's findings, Toby Heaps, Chief Executive at Corporate Knights Capital said: "We urge policy-makers to encourage or mandate listed companies to measure and disclose their performance.  The lack of corporate reporting on first generation indices is in stark contrast to the increasing demand for them from investors, community groups and NGOs, as well as the broader trend toward increased corporate transparency and accountability."

Notes to editors:

*World's largest listed companies with a market capitalization of at least US$ 2 billion. 

About Corporate Knights Capital

Corporate Knights Capital is an investment advisory and research firm based in Toronto, Canada, with over a decade of experience quantifying corporate sustainability. Corporate Knights Capital is a global leader in building investment strategies that integrate high quality corporate sustainability data. In 2013, Corporate Knights Capital launched the world's first sustainable smart beta equity strategy. For more information about Corporate Knights Capital, please visit: www.corporateknightscapital.com

About Aviva

• Aviva provides 31 million customers with insurance, savings and investment products.
• We are one of the UK's leading insurers and one of Europe's leading providers of life and general insurance.
• We combine strong life insurance, general insurance and asset management businesses under one powerful brand.
• We are committed to serving our customers well in order to build a stronger, sustainable business, which makes a positive contribution to society, and for which our people are proud to work.
• The Aviva media centre at www.aviva.com/media/ includes images, company and product information and a news release archive
• For an interactive introduction to what we do and how we do it, please click here http://www.aviva.com/library/reports/this-is-aviva/
• For broadcast-standard video, please visit http://www.aviva.com/media/video/
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About Standard & Poor's Ratings Services

Standard & Poor's Ratings Services, part of McGraw Hill Financial (NYSE: MHFI), is the world's leading provider of independent credit risk research and benchmarks. We publish more than a million credit ratings on debt issued by sovereign, municipal, corporate and financial sector entities. With over 1,400 credit analysts in 25 countries, and more than 150 years' experience of assessing credit risk, we offer a unique combination of global coverage and local insight. Our research and opinions about relative credit risk provide market participants with information and independent benchmarks that help to support the growth of transparent, liquid debt markets worldwide.

About the Association of Chartered Certified Accountants (ACCA)

The Association of Chartered Certified Accountants (ACCA) is the global body for professional accountants, supporting 170,000 members and 436,000 students across 180 countries and from 91 offices and centres. ACCA works to strengthen a global profession that is based on the application of consistent standards, which ACCA believes provide the best support for international business and the desire of talented people to have successful, international careers. ACCA champions the needs of small and medium-sized businesses (SMEs) and emerging economies, and promotes the value of sustainable business.

Image with caption: "Corporate Knights Capital released its third-annual "Measuring Sustainability Disclosure: Ranking the World's Stock Exchanges" report, prepared with support from Aviva plc, Standard & Poor's Ratings Services and the Association of Chartered Certified Accountants.) (CNW Group/Corporate Knights Inc.)". Image available at: http://photos.newswire.ca/images/download/20141014_C2904_PHOTO_EN_6627.jpg

SOURCE: Corporate Knights Inc.

Related Links

http://www.corporateknights.ca