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Sustainability Reporting Trends in North America

Most Active Sectors and Widely Used Guidelines

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Welcome to CSE’s Research of Sustainability (CSR) Reporting Trends in North America 2015.

This report presents the sustainability reporting trends for the reporting period of 2014. The Sustainability

Reports of four hundred and fifteen companies from United States and Canada were analyzed, many of them

included in the Fortune 500 list of companies.

Enjoy the reading

Nikos Avlonas

Founder and President CSE

© 2015 CSE 3

Contents Executive Summary ........................................................................................................................................................ 4

Major Trends .................................................................................................................................................................. 5

About this Research ........................................................................................................................................................ 6

Methodology .................................................................................................................................................................. 7

Introduction .................................................................................................................................................................... 8

Key Findings .................................................................................................................................................................... 9

Sectors with High Volume of Sustainability Reports ................................................................................................... 9

Profile of the Companies – Organizations ................................................................................................................. 12

Most Frequent Terms Used for Reporting ................................................................................................................ 16

Size of the Reports .................................................................................................................................................... 17

Most Frequent Standards and Guidelines for Reporting .......................................................................................... 19

Use, Application and Compliance to GRI .................................................................................................................. 22

Rise of External Assurance ........................................................................................................................................ 26

Conclusions ................................................................................................................................................................... 28

About CSE Services ....................................................................................................................................................... 31

Glossary ........................................................................................................................................................................ 32

© 2015 CSE 4

Executive Summary

The current research by the Centre for Sustainability and Excellence is intended to provide a useful

representation of the current state regarding Sustainability (Corporate Social Responsibility) reporting by

companies and organizations that are based in North America. It is intended for a number of stakeholder

groups who are interested in the subject, such as investors, business leaders, company boards, CSR and

sustainability professionals, NGOs, customers, academics and students.

It examines 415 unique sustainability reports for the 2014 reporting period, published by companies and

organizations based in North America. The research examines a number of characteristics regarding the

companies and organizations (such as sectors, size, ownership) and their reporting practices (such as

standards and guidelines used, extent of use of most common reporting guidelines, external assurance

practices).

The sectors with the highest reporting presence in the research sample are Financial Services, Energy and

Energy Utilities, Mining and Food & Beverage. The majority of the companies that publish a sustainability

report in North America are from the U.S.A. In both countries, most of the companies that published a

sustainability report for the 2014 are public companies (84.4% in the U.S. and 76.0% in Canada). There is a

significant percentage of Small-Medium Enterprises in both countries that published a sustainability report

for the 2014 reporting period (7.6% in the U.S.A. and 4.0% in Canada).

The two most frequently used terms, in both the U.S. and Canada, for these reports are “Sustainability

Report” and “Corporate (Social) Responsibility Report”. Report size ranges from a few pages to several

hundred pages. The reports, which have been conducted according to the Reporting Guidelines of the Global

Reporting Initiative (including the GRI Referenced reports), are considerably larger in size than the non-GRI

reports (74 to 37 pages respectively in the U.S. and 67 to 25 pages respectively in Canada).

Using specific guidelines for conducting these reports is a growing trend and adds value, transparency and

reliability to the report. 66% of the companies that published a sustainability report for the 2014 reporting

period used the Reporting Guidelines of the Global Reporting Initiative, while another 11% of the reports

used the Reporting Guidelines of the GRI as a reference. Globally, more than 50% of the reporting

companies and organizations seek external assurance for their reports, but the research demonstrates that in

North America, 69% of the reports that were conducted by using the reporting guidelines of the GRI, have

not sought external assurance.

© 2015 CSE 5

Major Trends There are some business sectors in North America that stand out for their sustainability reporting presence and

activity. These sectors are the financial services sector, the energy & energy utilities sector, the mining sector

and the food & beverage sector. These sectors are the most active in the specifics of their business activities

and operations. For example, in the financial sector sustainability reporting is a means for companies to show

clients, and society in general, their responsible profile and operations, while it is a means to communicate

with investors and attract new ones. The energy and mining sectors are active in the sustainability reporting

field due to the high environmental and social impact they have on the areas where they operate. In the U.S.

the most active sector is the financial services sector and in Canada the most active sector is the mining sector.

There is a clearly visible trend of public (listed) companies to publish sustainability reports in order to disclose

information and be transparent about their sustainability performance. More than 1000 Sustainability Reports

are expected to be published in the next 2 years in North America.

In both countries (U.S. & Canada) most of the companies that publish sustainability reports are Large and

Multinational Enterprises. Their national and international scale of their operations and impacts makes

reporting on their sustainability performance a necessity in order to keep their social and environmental

license to operate, while at the same time avoiding ESG risks.

There is a growing trend for Small-Medium Enterprises to publish sustainability reports in order to increase

their transparency, attract customers and grow their business. The number of SMEs, which publish

sustainability reports, is expected to grow in the following years.

The reporting guidelines of the Global Reporting Initiative remain the most widely used reporting guidelines

for conducting sustainability reports. GRI Reporting Guidelines adds value and enhances some of the benefits

of conducting a sustainability report such as improving processes and systems, progressing vision and

strategy, reducing compliance costs and gaining a competitive advantage. Surprisingly, there are still large

brands which do not use GRI or other guidelines, raising questions about their level of transparency and

credibility of the data they have disclosed.

The global trends clearly indicate that companies and organizations seek external assurance for their

sustainability reports. The percentage of companies and organizations in North America that seek external

assurance remains well below the global average, which is 63% for the world’s biggest companies. There are

issues of transparency and credibility due to the differences between self-disclosure of data and externally

assuring them.

There are a number of ways a company or organization can choose to report on its sustainability performance.

Sustainability reports vary in

sizes (ranging from 60 to 80

pages), a variation which is

mostly dependent on the

intended audience of the report

and the use of alternative

reporting techniques (such as

online reports and the use of

microsites). There is a growing

trend of using online means of

communicating sustainability

reports, and there is a

considerable percentage of

companies and organizations

which provide reports only

© 2015 CSE 6

online. Finally, reports which have been conducted according to the reporting guidelines of the GRI are

considerably larger than the ones which have been conducted without any particular reporting guideline.

About this Research

The current research by the Centre for Sustainability and Excellence is intended to provide a useful

representation of the current state regarding Sustainability (Corporate Social Responsibility) reporting by

companies that are based in North America. It is intended for a number of stakeholder groups who are

interested in the subject, such as investors, business leaders, company boards, CSR and sustainability

professionals, NGOs, customers, academics and students.

The goals of the research are to identify new trends

on Sustainability Reporting and :

Examine which sectors are more active in

sustainability reporting.

Examine the characteristics of the companies

that publish sustainability reports.

Examine the extent of the use of standards

and guidelines for publishing sustainability

reports (such as the Global Reporting

Initiative and other guidelines).

Examine the compliance and application

level of the reports which were conducted

using the GRI’s reporting guidelines.

Examine the practices for seeking external

assurance for the sustainability report.

© 2015 CSE 7

Methodology

The research was based on a study of sustainability-corporate responsibility reports by companies based in

North America. It is based on publicly available information in standalone sustainability (corporate

responsibility) reports. It includes information provided both in pdf and printed reports as well as in web-

only. The main, but not exclusive, source of information was the reporting database of the Global Reporting

Initiative. The research examined unique reports that refer to the year 2014 (i.e. published in 2014 or 2015).

For the purposes of the research, 415 unique reports published by companies based in North America were

examined.

For each report the following information was collected and used in the research:

Company/Organization Profile (name,

sector, country, size, type)

Sustainability reporting profile

(reporting period, report size,

standards and guidelines used,

application and compliance level of

GRI’s reporting guidelines)

External assurance practices, external

assurance standard and level.

The chosen sector categories are in

compliance with the sectors identified by the

Global Reporting Initiative.

The terminology used for reports varies between companies. The use of the term “sustainability reporting”

in this research should be taken to also cover the terms “sustainable development”, “corporate social

responsibility”, “corporate responsibility” and “corporate citizenship”

© 2015 CSE 8

Introduction

Sustainability Reports are a very useful tool for all companies who wish to communicate their actions

toward sustainable development. They include aspects that directly or indirectly relate to the company and

can be of interest to different stakeholder groups that are involved with the company, such as shareholders,

investors, employees, the public and others. Sustainability reporting is the tool an organization can use in

order to understand both its

exposure to risks and potential

business opportunities. It is also

the process of collecting and

analyzing information and data

(qualitative and quantitative),

necessary for creating long term

value and resistance to

environmental and social change.

Sustainability reporting is

gradually becoming an essential

business management tool, since

it will assist in convincing

investors of the organization’s

long term existence. The need of

companies to communicate

properly their responsibility led to the creation and the use of internationally recognized guidelines on

reporting, such as the Global Reporting Initiative (GRI) Reporting Guidelines. The question is no longer

“should we report?” but “what and how should we report?”.

© 2015 CSE 9

Key Findings

Sectors with High Volume of Sustainability Reports The companies that have published Sustainability Reports for the 2014 reporting period belong to various

sectors. The sectors with the highest presence in the research sample, regardless of whether the organization

has used any reporting guidelines for publishing the report, are : Financial Services (11.3%), Energy and

Energy Utilities (10.6%), Mining (7.5%) and Food and Beverage (6.7%). The following table shows the

sectors to which the 415 companies and organizations, which published a sustainability report for the 2014

reporting period, belong .

Sector % of total

number of

companies

examined

Financial Services 11.3%

Energy and Energy Utilites 10.6%

Mining 7.5%

Food and Beverage 6.7%

Healthcare Services and Products 5.3%

Equipment 4.8%

Real Estate 4.3%

Chemicals 3.4%

Retailers 3.4%

Telecommunications 2.7%

Automotive 2.2%

Public-Government-State Agency 2.2%

Computers 1.9%

Technology Hardware 1.9%

Aviation 1.9%

Commercial Services 1.9%

Railroad 1.9%

Construction 1.7%

Media 1.7%

Household and Personal Products 1.4%

Tourism and Leisure 1.2%

Conglomerates 1.2%

Forest and Paper Products 1.2%

Other (sectors with less than 1.0% each, such as NGOs, Waste

Management, Consumer Durables, Textiles and Apparel,

Agriculture, Logistics, Tobacco, etc.)

17.8%

Table 1: Sectors of companies which have conducted sustainability report for the 2014 reporting period.

© 2015 CSE 10

Breaking down the sectors by country, the top sectors in the USA are Financial Services, Food & Beverage

and Energy & Energy Utilities, while in Canada the top sectors are Mining, Financial Services and Energy

& Energy Utilities (table 3).

Sector (US Companies) % of total

number of

companies

examined

Energy and Energy Utilities 9.8%

Financial Services 8.3%

Food and Beverage 8.3%

Healthcare Products and Services 7.0%

Equipment 5.4%

Chemicals 4.1%

Real Estate 3.8%

Retailers 3.2%

Automotive 2.5%

Computers 2.5%

Mining 2.5%

Technology Hardware 2.5%

Aviation 2.2%

Commerical Services 2.2%

Public-Government-State Agency 2.2%

Household and Personal Products 1.9%

Railroad 1.9%

Telecommunication 1.9%

Construction 1.6%

Media 1.6%

Tourism and Leisure 1.6%

Conglomerates 1.3%

Consumer Products 1.3%

NGOs 1.3%

Other (sectors with less than 1.0% each, such as Construction

Materials, Consumer Durables, Textiles and Apparel, Waste

Management, Logistics, Agriculture etc.)

14.3%

Table 2: Sectors of US companies which have conducted a sustainability report for the 2014 reporting

period.

© 2015 CSE 11

Table 3: Sectors of Canadian companies which have conducted sustainability report for the 2014 reporting

period.

Sector (Canadian Companies) % of total

number of

companies

examined

Mining 23.0%

Financial Services 20.0%

Energy and Energy Utilities 13.0%

Real Estate 6.0%

Telecommunications 5.0%

Forest and Paper Products 4.0%

Equipment 3.0%

Retailers 3.0%

Agriculture 2.0%

Aviation 2.0%

Railroad 2.0%

Food and Beverage 2.0%

Media 2.0%

Public-Government-State Agency 2.0%

Construction 2.0%

Other (sectors with less than 1.0% each, such as

Conglomerates, Consumer Durables, Automotive, Chemicals,

Commercial Services, Textiles and Apparel etc.)

9.0%

© 2015 CSE 12

Profile of the Companies – Organizations The research focuses on sustainability reports published by companies and organizations based in North

American. 76.0% of these companies and organizations are from U.S.A., and 24.0% are from Canada.

Image 1: Country of origin of the companies and organizations which have published a sustainability report

for the 2014 reporting period.

Most of the companies that publish a sustainability report in North America are large companies (49.9%),

while 43.1% of the companies are Multinational Enterprises (MNE’s). A small, but considerable, percentage

(7.0%) is Small-Medium Enterprises (SME’s).

Image 2: Size of the companies/organizations which have published a sustainability report for the 2014

reporting period.

USA

(76%)

Canada

(24%)

Large

(50%)

MNE

(43%)

SME

(7%)

© 2015 CSE 13

In the U.S. there is a balance between the number of Large (46.8%) and Multinational (45.5%)companies

that published a sustainability report for the 2014 reporting period (image 3), while in Canada most (60%)

of the companies, that published a sustainability report, were Large companies (image 4). The percentage of

SME’s publishing a sustainability report is far greater in the U.S. (7.6%) than in Canada (4.0%).

Image 3: Size of the U.S. companies/organizations which have published a sustainability report for the 2014

reporting period.

Image 4: Size of Canadian companies/organizations which have published a sustainability report for the

2014 reporting period.

Most of the companies/organizations that publish sustainability reports are Listed/Public Companies

(82.4%)

Large

(47%)

MNE

(45%)

SME

(8%)

Large

(60%)

MNE

(36%)

SME

(4%)

© 2015 CSE 14

Image 5: Status of the companies which have published a sustainability report for the 2014 reporting

period.

In the U.S. the percentage of public companies that published a corporate sustainability report for the 2014

reporting period is 84.4% (image 6), while in Canada the percentage is 76.0%.

Image 6: Status of the U.S. companies which have published a sustainability report for the 2014 reporting

period.

Private

Companies

(Not listed)

(18%)

Public

Companies

(Listed)

(82%)

Private

Companies

(Not listed)

(16%)

Public

Companies

(Listed)

(84%)

© 2015 CSE 15

Image 7: Status of the Canadian companies which have published a sustainability report for the 2014

reporting period.

Private

Companies

(Not listed)

(24%)

Public

Companies

(Listed)

(76%)

© 2015 CSE 16

Most Frequent Terms Used for Reporting There are a number of terms used for these reports by the companies in North America. Since there are no

guidelines or standards, when it comes to naming these reports, each company/organization is free to choose

the title which best suits the interests, interpretations and intended audience of the company/organization

and their reports. Nevertheless, there are two terms, which are most commonly used, “Sustainability Report”

and “Corporate (Social) Responsibility Report”. This trend can be observed in both the U.S. and Canada,

with similar percentages for each term in both countries.

Image 8: Most frequent terms used by companies/organizations which published a sustainability report for

the 2014 reporting period.

Sustainability

Report

(36%)

Corporate

(Social)

Responsibility

Report

(33%)

Other

(31%)

© 2015 CSE 17

Size of the Reports There is a number of ways a company or organization can choose to report on its sustainability performance.

Sustainability reports vary in size, a variation which mostly depends on the intended audience of the report

and the use of alternative reporting techniques (such as online reports and the use of microsites). Companies

often chose to separate the GRI Index (the disclosures and indicators required by the GRI’s reporting

guidelines) from the sustainability report, a choice which results in a less technical and more user friendly

report, while at the same time maintaining the availability of the quantititative, technical data. The average

size of reports is 63 pages (65 in the U.S. and 59 in Canada). In both countries there is a considerable

difference between GRI (inclusing GRI Referenced Reports) and Non-GRI Reports. In the U.S. a GRI

Report has an average of 74 pages, while a non-GRI report an average of 37 pages. Similarly, in Canada, a

GRI report has an average of 67 pages, while a non-GRI report an average of 25 pages. In general report size

ranges from a few pages up to several hundred pages (the longest report examined in the research was more

than 600 pages). Online reports account for 8.9% of the reports in the U.S. and 10% in Canada. Online GRI

reports (including GRI referenced reports) account for 6.8% of the reports in the U.S. and 8.5% in Canada.

Finnaly, non-GRI online reports account for 15% of the reports in the U.S. and 16.7% of the reports in

Canada.

Image 9: Report size (page numbers) for the 2014 reporting period.

0

10

20

30

40

50

60

70

80

GRI and GRI

Referenced

Reports (page

number)

Non-GRI Reports

(page number)

Total Report Size

(page number)

© 2015 CSE 18

Image 10: Online reports for the 2014 reporting period

0

2

4

6

8

10

12

14

16

18

GRI and GRI

Referenced

Online Reports

(%)

Non-GRI Online

Reports (%)

Total Online

Reports (%)

© 2015 CSE 19

Most Frequent Standards and Guidelines for Reporting There are a number of standards and guidelines each company/organization can refer to for conducting their

sustainability report. The choice depends on the reporting maturity of the company/organization, on the

audience of the report, on the specific pillar (social, economic, environmental) the company/organization has

the most impact upon, or wishes to focus on, and on a number of other parameters. The most commonly

used reporting guidelines are the guidelines of the Global Reporting Initiative.

GRI promotes the use of sustainability reports as a tool for companies/organizations to become more

sustainable and increase their contribution towards sustainable development. In order to achieve this goal,

the GRI has created the reporting guidelines for conducting a sustainability report. 66% of the companies

that published a sustainability report for the 2014 reporting period used one of the versions (G3, G3.1, and

G4) of the Reporting Guidelines of the Global Reporting Initiative. 11% of the reports are characterized as

“GRI Referenced”, i.e. reports which have used the Reporting Guidelines of the GRI as a reference but have

not followed the Guidelines. Hence, 77% of the reports examined in the research have used, fully or

partially, the guidelines of the Global Reporting Initiative. Finally, 23% of the reports were created either by

following other standards and guidelines (e.g. UNGC, ISO26000) or by not following any standards or

guidelines.

Image 11: Use of the GRI’s Reporting Guidelines by the companies which have published a sustainability

report for the 2014 reporting period.

In Canada, 73% of the reports for the 2014 reporting period were conducted using the guidelines of the

Global Reporting Initiative, while in the U.S. 63% of the reports were conducted using the guidelines of the

Global Reporting Initiative.

GRI

(66%)

GRI

Referenced

(11%)

Non-GRI

(23%)

© 2015 CSE 20

Image 12: Use of the GRI’s Reporting Guidelines by Canadian companies which have published a

sustainability report for the 2014 reporting period.

Image 13: Use of the GRI’s Reporting Guidelines by USA companies which have published a sustainability

report for the 2014 reporting period.

It is common practice in sustainability reports to include information and data which is required by other

standards and guidelines, but has direct correlation with the three pillars of sustainability, i.e. society,

economy and the environment. Hence, 32.8% of the reports include information about the

company/organization’s compliance with the Carbon Disclosure Project (CDP), 12.3% include information

about the company/organization’s compliance with the 10 Principles of the United Nation’s Global Compact

GRI

(73%)

GRI

Referenced

(9%)

Non-GRI

(18%)

GRI

(63%)

GRI

Referenced

(11%)

Non-GRI

(26%)

© 2015 CSE 21

(UNGC), and 3.6% include information about compliance with the Guidelines of the Organization for

Economic Co-operation and Development (OECD Guidelines).

Standard – Guidelines % of reports

containing

information and

data about each

standard/guideline

Global Reporting Initiative (GRI) 77.0%

Carbon Disclosure Project (CDP) 32.8%

United Nation’s Global Compact (UNGC) 12.3%

Guidelines of the Organization for Economic Co-operation and

Development (OECD Guidelines)

3.6%

International Finance Corporation (IFC) 3.1%

ISO 26000 2.2%

Table 4: Standards, Guidelines and Reporting Guidelines referred in the reports for the 2014 reporting

period.

© 2015 CSE 22

Use, Application and Compliance to GRI By examining only the companies/organizations that have used one of the versions of the GRI’s Reporting

Guidelines for conducting their sustainability (CSR) reports it can be determined that the sectors with the

most reporting companies/organizations are Mining (10.7%), Financial Services (10.3%) and Energy and

Energy Utilities (9.2%).

Sector % of total

number of

companies

examined

Mining 10.7%

Financial Services 10.3%

Energy and Energy Utilities 9.2%

Food and Beverage 6.6%

Equipment 5.1%

Real Estate 5.1%

Chemicals 4.8%

Healthcare Services and Products 4.8%

Retailers 3.3%

Automotive 2.6%

Commercial Services 2.6%

Telecommunications 2.6%

Aviation 2.2%

Computers 2.2%

Public-Government-State Agency 2.2%

Forest and Paper Products 1.8%

Household and Personal Products 1.8%

Technology Hardware 1.5%

Construction 1.5%

Consumer Products 1.5%

Railroad 1.5%

Textiles and Apparel 1.1%

Other (sectors with less than 1.0% each, such as

Conglomerates, Construction Materials, Logistics, NGOs,

Waste Management, Agriculture, Media etc.)

14.0%

Table 4: Sectors of companies which have conducted sustainability (CSR) report using one of the versions of

the GRI’s Reporting Guidelines for the 2014 reporting period.

© 2015 CSE 23

40% of the reports were created using the latest version of the reporting guidelines (G4) which will be the

only version recognized by the GRI for reports published after the 31st of December 2015.

Image 14: Use of the different versions of the GRI’s Reporting Guidelines by the companies which have

published a sustainability report for the 2014 reporting period.

Another important parameter is the application level of the reports which have been conducted using the G3

and G3.1 versions of the GRI’s Reporting Guidelines. The application levels (A, B and C) communicate the

number of Aspects covered in the report and reflect the transparency level with respect to the reporting

guideline. They are not to be mistaken as indicators of the companies/organizations sustainability

performance, or as an indicator of the reports quality. The “+” sign next to each application level indicates

that the company/organization has sought external assurance for the report content. Specifically, 28.6% of

the reports conducted using the G3/G3.1 versions have an application level B, 19% application level C,

while 29.5% of the companies/organizations don’t declare the application level of their report.

G3 (9%)

G3.1 (17%)

G4 (40%)

© 2015 CSE 24

Image 15: Application level of the G3/G3.1 sustainability reports for the 2014 reporting period.

In the new version of the GRI’s Reporting Guidelines (G4) the application levels have changed and they are

now called compliance levels. The options are two: in accordance core and in accordance comprehensive.

The difference between the two levels lies in the number of indicators the company/organization has chosen

to disclose in the report for each identified material issue. In the “core” option the company/organization

chooses at least one indicator per material aspect, while in the “comprehensive” option the

company/organization must disclose all the available indicators for each identified material aspect. The

majority of the companies/organizations (71.5%) have chosen the “core” option, while a significant

percentage (23%) has not declared a compliance level.

A (6,7%) A+ (6,7%)

B (28,6%)

B+ (7,6%)

C (19,0%)

C+ (1,9%)

Undeclared

(29,5%)

© 2015 CSE 25

Image 16: Compliance level of the G4 sustainability reports for the 2014 reporting period.

Core (71%)

Comprehensive

(6%)

Undeclared

(23%)

© 2015 CSE 26

Rise of External Assurance One element of the sustainability reports that yields internal and external benefits, and increases the trust and

confidence levels in the areas of governance, management and relationship with stakeholders is the external

assurance of the Sustainability Reports. The benefits from the existence of external assurance include an

increase of awareness, reliability and trust, the reduction of risks and the increase of value, the strengthening

of internal management and reporting systems, improved communication with stakeholders, etc. According

to the GRI, seeking external assurance is not mandatory, in order for a report to adhere to the “in-

accordance” compliance levels. The GRI recommends that companies/organizations seek external assurance

for their sustainability reports. The majority (69%) of the reports, which were conducted using the GRI’s

guidelines, have not been externally assured.

Image 17: Existence or not of external assurance for the GRI sustainability reports for the 2014 reporting

period.

Equally important to the existence of an external assurance is the process of external assurance to follow one

of the internationally accepted assurance standards. Two of the most commonly used, internationally

recognized, assurance standards are the AccountAbility 1000 Assurance Standard (AA1000AS) and the

International Standard on Assurance Engagement (ISAE3000). Most of the external assurances (38.6%)

have been conducted without following an assurance standard. 31.3% of the external assurances have been

conducted using the ISAE3000, while 19.3% the AA1000AS (image 16). 3% of the external assurances

were conducted with more than one assurance standard.

Externally

Assured

(31%)

Not Assured

Externally

(69%)

© 2015 CSE 27

Image 18: Use of assurance standards for the external assurance of sustainability reports.

AA1000AS

(19%)

ISAE3000

(31%)

Other

National

General and

Sustainabilit

y Assurance

Standards

(11%)

No External

Assurance

Standard

(39%)

© 2015 CSE 28

Conclusions

Sectors with High Volume of Sustainability Reports The sectors with the highest presence in the research sample, regardless of whether the organization

has used any reporting guidelines for publishing the report, are, Financial Services (11.3%), Energy

and Energy Utilities (10.6%), Mining (7.5%) and Food and Beverage (6.7%).

The top sectors in the USA are Energy & Energy Utilities (9.8%), Financial Services (8.3%) and

Food & Beverage (8.3%), while in Canada the top sectors are Mining (23.0%), Financial Services

(20.0%) and Energy & Energy Utilities (13.0%).

Profile of the Companies – Organizations 76.0% (314 companies and organizations) of these companies and organizations are from the U.S.A.,

and 24.0% (100 companies and organizations) are from Canada.

Most of the companies that publish a sustainability report in North America are large companies

(49.9%), while 43.1% of the companies are Multinational Enterprises (MNE’s).

A small, but considerable, percentage (7.0%) of the companies that publish a sustainability report are

Small-Medium Enterprises (SMEs).

Most of the companies/organizations that publish sustainability reports are Listed/Public Companies

(82.4%). In the U.S. the percentage of public companies that published a corporate sustainability

report for the 2014 reporting period is 84.4%, while in Canada the percentage is 76.0%.

© 2015 CSE 29

Most Frequent Terms Used for Reporting Companies and organizations use a variety of terms to name their Reports. There is a wide range of

combinations of the terms “sustainability”, “corporate”, “citizenship”, “social”, “responsibility”,

“sustainable development” used by companies and organizations. Nevertheless, there are two terms

which are most commonly used, “Sustainability Report” and “Corporate Responsibility Report”.

This trend can be observed in both the U.S. and Canada.

Size of the Reports In both countries, the size of the Sustainability Reports (including GRI based and GRI referenced

reports) is considerably larger than non-GRI Reports (74 to 37 pages)

A significant percentage of reports are online (8.9% in U.S. and 10% in Canada).

Most Frequent Standards and Guidelines for Reporting 66% of the companies that published a sustainability report for the 2014 reporting period used one of

the versions (G3, G3.1, and G4) of the Reporting Guidelines of the Global Reporting Initiative.

In Canada, 73% of the reports for the 2014 reporting period were conducted using the guidelines of

the Global Reporting Initiative.

11% of the reports are characterized as “GRI Referenced”, i.e. reports which have used the Reporting

Guidelines of the GRI as a reference but have not followed the Guidelines. Hence, 77% of the

reports examined in the research have used, fully or partially, the guidelines of the Global Reporting

Initiative.

23% of the reports were conducted either by following other standards and guidelines (e.g. UNGC,

ISO26000) or by not following any standards or guidelines.

32.8% of the reports include information about the company/organization’s compliance with the

Carbon Disclosure Project (CDP).

12.3% include information about the company/organization’s compliance with the 10 Principles of

the United Nation’s Global Compact (UNGC).

The company’s reputation or size is not an indicator of use or compliance with reporting standards

and guidelines. There are examples of well-known and multinational companies which have not used

any reporting guidelines (GRI or UNGC) for their sustainability reports, belonging to major sectors

such as the Financial and Technology sectors.

Use, Application and Compliance to GRI The sectors with the most reporting companies and organizations, according to the guidelines of the

GRI, are Mining (10.7%), Financial Services (10.3%) and Energy and Energy Utilities (9.2%).

40% of the reports were created using the latest version of the reporting guidelines (G4) which will

be the only version recognized by the GRI for reports published after the 31st of December 2015.

The compliance levels (“in-accordance core” and “in-accordance comprehensive”) communicate the

number of indicators the company/organization has chosen to disclose in the report for each

identified material issue. They are not to be mistaken as indicators of the company/organization’s

sustainability performance, or as an indicator of the reports quality. The majority of the

companies/organizations (71.5%) have chosen the “in-accordance core” option (at least one indicator

per material aspect), while a significant percentage (23%) have not declared a compliance level.

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Rise of External Assurance In contrast with the global trends, which indicate that 54% of the reporters seek external assurance

for their sustainability (CSR) reports, 69% of the reports that were conducted by using the reporting

guidelines of the GRI, have not sought external assurance. There are two potential major barriers that

prevent companies and organizations seeking external assurance for their sustainability reports. The

first one is a lack of understanding of the importance and benefits of external assurance. The second

one is the cost of the external assurance process.

It is important to note that major reporting and disclosure organizations and indices, such as GRI

and CDP, request or recommend the external assurance of sustainability reports, in order for their

content to be verified and validated.

Most of the external assurances (38.6%) have been conducted without following an assurance

standard. 31.3% of the external assurances have been conducted using the ISAE3000, while 19.3%

the AA1000AS.

The company’s reputation or size is not an indicator of seeking external assurance for their GRI

sustainability reports. There are examples of well-known and multinational companies which have

not sought external assurance for their sustainability reports, belonging to sectors such as Computer

Hardwre, Equipment and Food & Beverage.

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About CSE Services (www.cse-net.org) CSE is a leading boutique firm specialized in global sustainability (CSR) consulting, coaching and training. Since

2004, early entry into the international sustainability (CSR) services market, CSE has been assisting clients to

achieve higher performance, build brand loyalty and innovate through the continuous integration of sustainability

principles into their culture, products and/or services.

Public and private sector clients benefit from CSE expertise in serving diverse sectors, markets and organizational

cultures in the Americas, Europe, Asia and the Middle East.

Integrated Consulting Services from A to Z Our services and web tools are designed to assist businesses and organizational leaders to understand and meet the

evolving international standards and frameworks, such as the United Nations Global Compact (UNGC), the

Global Reporting Initiative (GRI), the Carbon Disclosure Project (CDP), Green House Gas Protocol, the Dow

Jones Sustainability Index (DJSI), ISO 26000 guidelines and other local and international guidelines.

"CSE believes that investment in human capital through education, training and coaching is the single most

important determinant of future value for all organizations"

Consulting Services

Sustainability and Materiality Assessment

Sustainability Strategies

Sustainability and Integrated Reporting

External Verification and Assurance

SROI and Stakeholder Engagement Programs

Carbon Reduction and Product Life Cycle Analysis

Supply Chain Sustainability Green Buildings and Events

Pioneering in Sustainability Education for the last 10 years

(www.sustainability-academy.org) CSE is accredited by IEMA to provide global training to Sustainability Professionals and is also a GRI organizational stakeholder. We have trained over 5,000 Sustainability Professionals from five continents through on-site, online and group training. Those are the following : Certified Sustainability Practitioner Program (Advanced Version) , Online Diploma on Corporate Sustainability, Online Certificate for Sustainability Reporting , Online Certificate for Carbon Footprint Reduction, Online Certificate on ESG Performance.

Our clients include Fortune 500 companies and organizations such as WalMart, United, NASA, Walgreens,

Lloyds Banking Group, Coca Cola, Oracle, Shell, Baker Hughes,Whole Foods, North Face, World Bank.

© 2015 CSE 32

Glossary

Sustainability (CSR) Reporting: an organizational report that gives information about economic,

environmental, social and governance information. It is a method to internalize and improve an

organization’s commitment to sustainable development in a way that can be demonstrated to both

internal and external stakeholders.

Global Reporting Initiative (GRI): an international independent standards organization that helps

businesses, government and other organizations understand and communicate their impacts on

issues relating to economic, social and environmental performance.

Indicator (GRI): qualitative or quantitative information about results or outcomes associated with

the organization that is comparable and demonstrates change over time.

Material Aspect (GRI): reflects the organization’s significant economic, environmental and

social impacts; or the aspects that substantially influence the assessments and decisions of

stakeholders.

United Nations Global Compact (UNGC) is a United Nations initiative to encourage businesses

worldwide to adopt sustainable and socially responsible policies, and to report on their

implementation. The UN Global

Compact is a principle-based

framework for businesses, stating ten

principles in the areas of human

rights, labour, the environment and

anti-corruption.

International Finance Corporation

Sustainability Framework (IFC): The

IFC, a member of the World Bank

Group, is the largest global

development institution focused on

the private sector in developing

countries. IFC’s Sustainability

Framework includes the Policy and

Performance Standards on Social and Environmental Sustainability. It provides the private sector

clients with a clear and comprehensive view of requirements early in their engagement with IFC.

ISO26000 provides guidelines for social responsibility (SR). Its goal is to contribute to global

sustainable development, by encouraging business and other organizations to practice social

responsibility to improve their impacts on their workers, their natural environments and their

communities.

OECD Guidelines: The OECD Guidelines for Multinational Enterprises are the most

comprehensive corporate responsibility instrument developed by governments in existence today.

They cover all major areas of business ethics and are addressed to all the activities of

multinational enterprises operating in or from the 42 adhering countries. The OECD Guidelines

also have a unique implementation mechanism to address issues arising from their non-

observance.

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CDP (Carbon Disclosure Project) is an organization based in the United Kingdom which works

with shareholders and corporations to disclose the greenhouse gas emissions of major

corporations.

AA1000AS (2008) assurance provides a comprehensive way of holding an organization

accountable for its management, performance, and reporting on sustainability issues by

evaluating the adherence of an organization to the AccountAbility Principles and the reliability of

associated performance information.

ISAE3000 is a standard for assurance over non-financial information. ISAE3000 is issued by the

International Federation of Accountants (IFAC). The standard consists of guidelines for the

ethical behavior, quality management and performance of an ISAE3000 engagement. Generally

ISAE3000 is applied for audits of internal control, sustainability and compliance with laws and

regulations.

MNE (Multinational

Enterprises) are organizations that owns

or controls production of products or

services in one or more countries other

than their home country.

SME (Small Medium

Enterprises) are businesses whose

personnel numbers fall below certain

limits. Industry Canada defines a small

business as one with fewer than 100

paid employees and a medium-sized

business as one with at least 100 and

fewer than 500 employees. In the

United States, the Small Business

Administration sets small business

criteria based on industry, ownership structure, revenue and number of employees (the cap is

typically 500).

Public Company: A company that has issued securities through an initial public offering (IPO)

and is traded on at least one stock exchange or in the over the counter market. Although a small

percentage of shares may be initially "floated" to the public, the act of becoming a public

company allows the market to determine the value of the entire company through daily trading.

Private Company: A company whose ownership is private. As a result, it does not need to meet

the strict Securities and Exchange Commission filing requirements of public companies.

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