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An analysis of the environmental and corporate social responsibility (CSR) reporting practices of the UK’s top 200 companies.

With commentary and analysis from:

• Roger Cowe – Journalist• Mark Wade – Shell• Simon Propper and Peter Knight – Environmental Context• Nigel Salter – salterbaxter

Directions in Environmental and CSR Reporting 2000/01

Researched and published by

Contents

1 Introduction

2 Roger Cowe: Investors need information.

4 How the UK government encouragesreporting.

6 Mark Wade: Why Shell reports.

8 Simon Propper and Peter Knight: Reasons to take the plunge.

10 Nigel Salter:Reporting is one thing, communicatingeffectively is quite another.

12 Methodology

13 Analysis – overview

14 Analysis

16 Analysis by sector

19 Looking forward

20 International overview

22 Data UK top 200

Directions 1

Environmental and corporate social responsibility (CSR) reporting hasevolved substantially over the last decade.

There is no doubt that the concepts of environmental performance,corporate responsibility and sustainability are now, at the very least,being discussed at board level in major corporations.

Government pressure, demands from the investment community, growthin private share ownership, high profile environmental stories and theincreasingly demonstrable business benefits have all contributed to theissues moving up the agenda for discussion.

But a lot of it is just that - discussion. The underlying direction thatreporting is taking is still unclear. Outside the heavily regulatedindustries that have dealt with these issues for years companies areunsure how to engage with the debate.

It seemed to us that it was time to establish the real state ofenvironment and CSR reporting in the UK’s top companies.

We are not being judgmental but merely recording what companies aredoing. Indeed, one of the clearest messages to emerge from our researchis that those who are just beginning to address CSR are discouraged bythe judgmental approaches and ‘scoring’ techniques of thebenchmarking organisations.

This survey records and analyses where companies have got to in thefield of reporting. We discuss through the articles and commentarysome of the practical views and the issues involved with reporting inthe real world of business.

This is the first edition of this research document. We plan to publishevery year, expanding our scope and identifying emerging trends.

Your feedback would be most welcome.

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Ethical investment is the best-known face of the“concerned shareholder”. But it is just the tip of theiceberg of socially responsible investment (SRI) andcan give a misleading impression of what suchshareholders want from their investments.

Insurance companies such as CGNU and othermainstream fund managers such as Henderson arenow starting to see social and environmental issuesin a corporate governance context. Just as theyexpect board structures and practices to comply withthe City’s Combined Code, they also expectcompanies to manage their impacts on society,minimising the negative and maximising thepositive.

The Combined Code was developed to encapsulatethe corporate governance reforms of the 1990’s. It isbased on the realisation that the City needs morethan accounting standards and takeover rules tomake sure companies are being run properly. It alsoneeds clear rules setting out what is expected ofcompanies.

Investors also need to see that the companies whoseshares they own are following the rules, whichrequires reporting of key information – such asdirectors’ pay packages, and which directors makethe decisions on directors’ pay.

The same applies to social responsibility. Sociallyresponsible investors are no different in needinginformation on which to base their investmentdecisions. They need to know what companies’policies are, how they are performing in areas suchas labour standards and greenhouse gas emissions,just as financial analysts need financial informationand corporate governance officers need to see howboards are behaving.

This kind of reporting to the SRI community needs tobe taken just as seriously as conventional reporting.Financial analysts would not expect to be fobbed offwith generalisations about sales, profits and earningsper share. They want figures which can be relied on.

The same applies to SRI analysts. They need to knowwhat companies have achieved, what their targetsare, and how they aim to get there. And as the ranksof social responsibility investors grows, that meanswidespread reporting, probably as part of routinecommunications with shareholders.

The audience is growing rapidly, and is already along way from the niche market of retail ethicalinvestors. Henderson and CGNU’s fund managementarm, Morley Fund Management, each speak forabout £70bn of equity funds. They are among thetop five investment groups in the UK. Add in FriendsIvory & Sime, Hermes (which includes BT’s hugepension fund in its portfolio) and the UniversitiesSuperannuation Scheme (USS), and you have apowerful force judging companies on social andenvironmental performance as well as financialresults. Morley has announced that it will voteagainst companies’ annual reports which don’tinclude some kind of environmental report.

That force is bound to grow, partly because of therequirement for all pension funds to consider social,environmental and ethical issues as part of theirannual investment policy review.

Pension funds are terrified of excluding evenrelatively small sectors of the stock market, as in thetraditional approach to ethical investment. But manywill want to adopt some form of “engagement” – theterm coined to describe the way investors raiseissues with the companies whose shares they hold.

Few pension funds will go as far as USS, which isincorporating these issues into its routine investmentmanagement. But many will ask their fund managersto “engage” to some extent. Companies have to facethe fact that it is no longer possible to talk only interms of financial performance. This year sees thelaunch of a series of SRI indices from FTSEInternational, the joint venture between the FinancialTimes and the stock exchange, which runs a host ofmarket standards such as the FTSE 100 index.

They come under the banner FTSE4Good, and the UKversion will include only those members of the FTSEAll-Share index which meet social andenvironmental standards. This means even relativelysmall quoted companies will face the same sorts ofquestions as the multinationals.

Constituent companies will have to demonstrateresponsibility on human rights, stakeholder relationsand environmental impact. Even the smallercompanies in the grouping will need to be aware ofthe issues, and have policies and managementsystems to deal with them. That includes measuringand reporting performance. It is a long way from theprofit and loss account and balance sheet whichused to form the centrepiece of the annual report,but companies which want to keep theirshareholders happy will need to make that journey.

INVESTORS NEED INFORMATION by Roger Cowe

More than £3bn is now invested in ethical funds – unittrusts and similar vehicles for collective investment,which exclude certain unacceptable industries oractivities or focus on benign areas of the economy.

‘Companies have to face the fact that itis no longer possible to talk only interms of financial performance.’

1Roger Cowe is a writerspecialising in socialand environmentalaspects of business.

Directions 3Directions 2

‘This year sees the launch of a series ofSRI indices from FTSE International…

they come under the banner FTSE4Good,and the UK version will include only

those members of the FTSE All-Shareindex which meet social and

environmental standards.’


THE GOVERNMENT POSITION

Taken from the prime minister’s speech to theCBI/Green Alliance Conference on the Environment,24 October 2000.

As BP’s John Browne has said, the enlightenedcompany increasingly recognises that there are goodcommercial reasons for being ahead of the pack whenit comes to issues to do with the environment.

The City and investment community are beginning torecognise the new commercial and environmental

realities, and to make money out of them. The returnon equity of the new Dow Jones Sustainability GroupIndex averaged 15%, compared to 8% for the regularindex for the first half of this year. And moreindividual investors are choosing ethical investmentportfolios which reflect their values. Legislationearlier this year on Statements of InvestmentPrinciples required pension funds for the first time todisclose whether they take ethical, environmental orsocial factors into account in their decisions.

The World Business Council on SustainableDevelopment, of which many of you here today aremembers, is driving forward the agenda to increasethe efficient use of resources. I would also like to seemore reporting on environmental and socialperformance. The pioneers of environmental reporting- companies like BA, BT, British Gas, and BP - areseeing increasing benefits from both improvedefficiencies and public image as a result. This issomething that all companies should be doing, and Iam issuing a challenge, today, to all of the top 350companies to be publishing annual environmentreports by the end of 2001.

Taken from Michael Meacher’s speech at the ACCAEnvironmental Reporting Awards, 23 March 2001.

Now of course some companies may be starting to dothe right thing but not reporting it. The message isyou won’t be believed unless you are prepared todemonstrate it, by being open in your reporting. If youare doing it, please tell us.

I would stress that there is no doubt that a newbusiness environment is emerging. A few examples ofleadership help show the direction in which things aremoving.

The Advisory Committee on Business and theEnvironment identified sustainable development as akey issue for its work last year. In December, itpublished a briefing paper entitled `Value, Growth,Success - how sustainable is your business?’ I urge allsenior managers to read it.

Last year the FORGE group produced guidelines tohelp the financial sector report on its environmentalperformance.

We recently heard that the new FTSE4Good sociallyresponsible investment index will be launched inJune. This joins other indices such as the Dow JonesSustainability Index and the Business in theEnvironment index of company environmentalengagement. And the work of the Advisory Committeeon Consumer Products and the Environment hasreinforced the need for companies to provideconsumers with reliable information about theenvironmental impacts of products and services.

Reporting has been emphasised by both the primeminister, Tony Blair, and the environment minister,Michael Meacher, who has named and shamed someof those in the FTSE 350 who do not report.

The Department of Environment, Transport and theRegions (DETR) has published a set of three specificguidelines for reporting on greenhouse gasemissions, waste and water. It has also issued draftgeneral guidelines on environmental reporting whichexplain simply how to produce a good quality basicreport - including key indicators to report against.

The guidelines are targeted mainly at first-timereporters. The emphasis is on making incrementalsteps, rather than trying to do everything at once.

No particular format is preferred and the DETRencourages reporters to choose either one or all of these:

• Environment section in the annual report and accounts

• Stand-alone hard copy report• Stand-alone web-based report.

This is a summary of the draft guidelines.

Organisation profile This gives the reader an idea of who you are andwhat you do, including an overview of operations,location of major sites, ownership, joint ventures,turnover etc.

CEO StatementLeadership message giving details of plans toimprove the company’s environmental performance.

Environmental policyPublish the full policy.

Identify key environmental impactsA report will contain typically between 4 and 10 keyimpacts, depending on the nature of the business,dealt with separately later in the report.

Environmental performance indicatorsThe core of the report is made up of reporting on key environmental impacts, using acknowledgedindicators. For example, air emissions could bereported in quantities of specific gases emitted (egvolatile organic compounds and ozone depleters).Other impacts include: waste, water pollutants,energy use and land use. Impacts could also includethe use and disposal of products.

Improvement targetsIt is good practice to set and report targets toreduce impacts in each area. Wherever possibletargets should be specific and quantified to a settimescale, challenging but achievable.

Description of management systemsA clear description of how you manageenvironmental issues and the people who are in charge.

Legal complianceList of prosecutions (including fines and costs) forinfringing environmental laws.

Supply chain Describe what you are doing to help ensure thatyour suppliers are also acting to reduce theenvironmental impact of their operations.

Contact details for feedback Encourage readers to seek more information bygiving them the necessary details.

Full details and additional support material may be foundat www.environment.detr.gov.uk/envrp/index.htm.

HOW THE UK GOVERNMENT ENCOURAGES REPORTINGThe UK government is serious about reporting and it isencouraging companies to report. The prime ministernow appears to view the environment as a businesspriority.

‘As BP’s John Browne has said, theenlightened company increasinglyrecognises that there are goodcommercial reasons for being ahead of the pack when it comes to issues to do with the environment.’

2Extracts from DETR’sreporting guidelines andspeeches by the primeminister and MichaelMeacher.

‘…I am issuing a challenge,today, to all of the top 350companies to be publishingannual environment reportsby the end of 2001.’


Shell has been successful for close on 100 years, butin the mid-1990’s we began to question our fitnessto face the challenges of the 21st century. Then in1995 the company received a wake-up call in theform of the controversy surrounding the proposedsinking of the Brent Spar oil storage buoy deep inthe Atlantic. This, and the public reaction to Shell’soperations in Nigeria, highlighted the need toengage with stakeholders and acted as a catalyst forchange.

We took a hard look at the way we managed ourbusinesses, especially in the light of the changingexpectations society has of the role and behaviour ofmultinationals. This is a world where there is anincreasing demand for openness and transparency,and for companies to account for theirenvironmental and social responsibilities. Thus, theShell Report was born.

The Report was the publicly visible part of a muchbroader management strategy to ensure that Shell began to focus its efforts on contributing tosustainable development. Given the size of Shell -combined with the complexity of the concept ofsustainable development - this is a huge undertakingand one that will take a considerable amount oftime to implement fully.

The Report showed an outline strategy - called aRoad Map - for bringing sustainable developmentthinking into business activities. A practical tool wasdeveloped to implement the strategy - we called itthe Sustainable Development ManagementFramework (SDMF) – and Key Performance Indicatorsare being developed to chart progress and drivecontinuous improvement. Key elements of the SDMFinclude integration of economic, environmental andsocial considerations into decision-making, andengagement with people (including critics) insideand outside of Shell.

The Report is an integral part of a broadercommunications strategy, which includes a campaign to encourage dialogue on economic, social andenvironmental issues facing Shell, our industry andsociety at large. We use various media, includingadvertising and the internet. Our website includes a

‘Tell-Shell’ facility that enables contributors tohave their views posted (no matter how

frank or critical) or engage in activedebate on our web ‘Forum’. We also

undertake to respond personally tothose correspondents who wouldlike a reply or who seekinformation.

FutureThis year, in response to readers’ requests, The ShellReport is shorter and more concise even though itcontains additional economic, environmental andsocial performance data. The level of verification hasbeen increased and it contains the same frankcoverage of issues, case studies, expert testimonyand a wide range of ‘Tell Shell’ comments. For thefirst time this year a summary version was sent toshareholders along with a copy of the Annual Reportand Accounts of the Parent Company of the ShellGroup they invest in. Our aim is to fully integrateour reporting in future to satisfy the needs ofshareholders and other stakeholders.

Business benefitsWe have a long tradition of doing things thoroughlyat Shell and find that it pays. We have spent aconsiderable amount of time, money and effort ondeveloping the necessary management systems,reporting, verification and communicating ourprogress.

The SDMF offers business benefit in four key areas:• It helps reduce costs by encouraging eco-

efficiency (making less waste and doing more with less)

• Creating new opportunities by anticipating newmarkets driven by customers who want a moresustainable world

• Gaining customers – enhancing the brand byproviding products and services built onsustainability thinking

• Reducing risk – managing risks better throughresponsible behaviour.

We believe that through the Shell Report and ourcommitment to openness and engagement, we areearning understanding and trust in many areas. Thisis leading to:

• Co-operation and partnership with a broad rangeof non governmental organisations

• Shell becoming the preferred choice of operatorfor many governments worldwide

• Attracting top talent• Aligning corporate values with those of our staff

and empowering our people to challengetraditional ways of working.

The CSR benefitEach year the ‘Tell Shell’ facility receives some 1,000messages by emails, letters and direct onto theForum from correspondents all over the world.Engagement provides not only a chance for Shell tocommunicate on issues such as climate change orhuman rights, but also an opportunity for us to hearthe views and concerns of a society that makes upour customers, shareholders and other stakeholders.

The Report, for all its high profile, is only a report. Itstrue significance lies in the underlying performanceit represents and our continuous efforts to live up toour Business Principles and the commitments tosustainable development and human rights that theycontain.

WHY SHELL REPORTS by Mark Wade (founder member of the Sustainable Development Group of Shell International)

We believe that sustainable development andstakeholder engagement is fundamental to the futuresuccess of our business.

The Royal Dutch/ Shell Group ofCompanies - involved in the oil, gas,chemicals and renewable energy businessin over 130 countries worldwide -produced the first report on itscommitment to sustainable developmentin 1998, called ‘The Shell Report - profitsand principles, does there have to be achoice?’. Four years on, Shell is seen as aleader in Corporate Social Responsibilityreporting, winning a number of awards,including the ACCA/ISEA Social ReportingAwards for 1999, ACCA EnvironmentalReporting Award for 2000, the EuropeanEnvironmental Reporting Award for 2000and the World Environment Center GoldMedal Award for EnvironmentalAchievement for 2000.

3‘Engagementprovides…an

opportunity for us tohear the views and

concerns of a society that makes up our

customers, shareholdersand other

stakeholders.’

‘This is a world wherethere is an increasingdemand for opennessand transparency…’

The Shell Report 2000. ‘People, Planet & Profits’.


Despite six years of government encouragement(the Conservatives supported reporting too) and adecade of peer pressure, our survey shows that 97of the FTSE 200 resist all reporting demands fromstakeholders, such as socially responsibleinvestment funds, pressure groups, businesscustomers and benchmarking organisations.

Reasons for their reticence are many and varied.Many boards still reject the idea of businessengaging with any interest group other than thosewho own shares. They stick to the narrow and nowrather outdated idea that the only responsibility ofbusiness is to comply with the law and paydividends to investors. The board’s socialresponsibility ends, according to this view, whenthe company pays its tax bill.

Several companies told us they deeply resentedattempts by government and organisations such asthe charity Business in the Environment (BiE) -which ranks companies on their environmentalperformance - to browbeat them into reporting.They consider such gratuitous reporting as merelyscratching the backs of politicians and do-gooders.

Those who accept that they should acknowledgethe needs of a wider constituency complain aboutthe inflexibility of existing reporting guidelines.Many find the Global Reporting Initiative (GRI) andprevious prescriptions from the United NationsEnvironment Programme (UNEP) just toocomplicated and demanding.

Beginners say they are offered little advice on howto take the first step. Those that are brave enoughto venture out fear being marked down by indexerssuch as BiE if they fail to produce a triple salchowfirst time on the ice.

To be fair, some of these concerns are beingaddressed by the UK government’s GeneralGuidelines on Environmental Reporting (see page 4),a commendably practical approach to the issueand an excellent place for rookies to start.

If the 97 - many are service companies - are to taketheir first steps then something will have to bedone to encourage the service industry to feel morecomfortable about reporting. “Why,” asks an insurer,“should we have to follow reporting standardsdesigned for a giant chemicals company?”

This concern is certainly valid. Environmentalreporting and the management systems designedto control environmental impacts are geared forbig polluters. How can the same standards besuitable for banks, television companies and othersoffering a service? These companies have relativelyfew environmental impacts and do not need a fullISO 14001 management system to manage theirpaper clip consumption. Neither should they feel obligated to comply with the GRI dictats on reporting.

Other than a simple fear of engaging with thebroader society, we feel the main barrier toreporting is the difficulty that companies find inidentifying the benefits. “Why bother?” ask many.Indeed, why should those businesses that are notin the public gaze, will never have Greenpeacesnorkeling up their outfall, don’t own consumerbrands and don’t exploit children in far-awayplaces report?

Having worked on about 100 reports across mostsectors we have witnessed the frustrations clientsfeel. But more important: we have seen how thebusiness can benefit. Other than a boost to thecompany’s reputation (including the often-ignoredperception of employees about their employer), the main kickback is the understanding thatmanagement can get on the implications of their actions.

This can lead to simple cost savings but moresignificantly, it can deliver the data that enablesmanagement to make real bottom-line efficiencies.These are things that excite the all-importantshareholders: reduced energy consumption (haveyou seen the price of oil lately?), safer workingpractices (death and disease is expensive), happierworkforce (stress and disillusionment can becostly), better legal compliance (fines are notcheap) and so on.

The function of reports is to communicate thesebenefits to a broader audience, while also helpingpeople understand the softer but all-importantconstituent of a business: its values.

Opposite is a list of benefits and some dos anddon’ts for the first-time reporter. The water hasnever been warmer - it’s time for the 97 to take the plunge.

Top 10 Dos

• Do it! It can be difficult for beginners, butthe right report will silence your critics andbring business benefits.

• Make sure your corporate values areconveyed.

• Research your audience - don’t be afraid toask them what they want to hear. Then focuson their needs.

• Use the most appropriate medium or acombination of media. Some people, such asregulators, still like paper while campaignersare happy with the web.

• Use the web, but keep websites short, clearand to the point.

• Be concise and clear. We all have too muchto read, keep it short.

• Write plain English avoiding technical termsand company spin - you’ll make morefriends.

• Show commitment to improve.• Be confident but open to criticism.• Treat your report as you would any product.

Constantly look for ways to distribute it.Market it. And then market it again.

Top Five Don’ts

• Don’t follow guidelines slavishly. Pick andmix - focus on what’s important to you andbe bold enough to say why.

• Don’t spin. Credibility comes from being openand honest.

• Don’t expect to produce your best report firsttime.

• Don’t spend too much money - keep itsimple.

• Don’t try reporting if you have nothing toreport - the document must reflect abroader business initiative.

REASONS FOR THE 97 TO TAKE THE PLUNGE by Simon Propper and Peter Knight

Almost half of the UK’s biggest 200 companies do notreport on their social or environmental performance.

4Simon Propper andPeter Knight are directorsof the consultancyEnvironmental Context.

Top Ten Benefits

Reporting:• Helps convey your values.• Improves the reputation of the company

among important interest groups such asemployees, opinion formers and pressuregroups.

• Helps recruit better people (who wants towork for a dirty, socially irresponsiblecompany?).

• Gives staff the credibility to engage withregulators and policy makers.

• Reassures corporate customers and others inyour supply chain (especially those withstrong values of their own).

• Reassures employees.• Attracts investment from ethical and green

funds.• Helps to collect the information demanded

by an increasing number of mainstreaminvestors (including pension funds andinsurance companies).

• Helps identify inefficiencies.• Is a catalyst for generating management

information which can save waste andreduce costs.

‘Beginners say they are offeredlittle advice on how to take thefirst step. Those that are brave

enough to venture out fear beingmarked down by indexers… if

they fail to produce a triplesalchow first time on the ice.’

2. The second real drawback of the internet is thefact that publishing a report on the web doesabsolutely nothing by way of pro-actively arguinga company’s position on these issues or bringingthe debate to a broader audience.

The fundamental problem is that it does notreach out to new audiences - an internet report is a depository of information for those who arealready interested or those just passing throughby chance. It is not an active, persuasivecommunication tool.

This is where I believe many companies have gonetoo far in adopting the internet as the main mediumfor reporting. It is practical and easy but it neglectsnew audiences, audiences who need to be surprisedand also entire constituencies who either don’t haveaccess to the internet or are disinclined to use it.And here I am not talking about peripheralaudiences. I am talking about Chief Executives,Chairmen and business leaders who simply wouldnot choose to go and look at a company’s websitebut who may well respond positively to an effectivepiece of printed communication that they can carryand read on a train journey or that might grab theirattention at their desk.

The internet has encouraged far greater quantity ofreporting and this should be welcomed. It is not,however, improving the quality of communicationand this fact should not be ignored by thosecompanies that wish to communicate with theiraudiences as opposed to simply making dataavailable.

This is also where we should be slightly critical ofthe drive to standardise reporting. The intention tosimplify and create guidelines that enablecomparability is obviously desirable, not least to aidSRI analysis. But the danger is that an obsessionwith the standards will stifle innovation andeffectiveness. It could be argued that the moresophisticated businesses in this field are not thosewith the best technical reports and processes. Itseems to me that the companies that are engagingin this field most effectively are those who regardthe report as a means and not an end in itself. Theysee it as a key communications vehicle but not theonly one. The innovation and effectiveness comesfrom what they do in addition to a standard report -be it analyst presentations, online forums or staffcommunications programmes.

Let us not forget that the end objective is notnecessarily for all businesses to produce a standardreport on their environmental and CSR performance.

The objective is for business to address these issueseffectively and to engage with all stakeholders andconstituencies in a dialogue.

Reporting itself is merely a signal that the dialogueis starting. This dialogue will only become trulyworthwhile when businesses place as much value ongetting their message across as on the quality oftheir technical systems and data.

REPORTING IS ONE THING, COMMUNICATING EFFECTIVELY IS QUITE ANOTHER by Nigel Salter

As most major organisations will testify, developingan environmental and CSR reporting process is nosmall task, especially for businesses approaching theissues for the first time.

5Nigel Salter is a directorof design consultancysalterbaxter which he founded with Penny Baxter.


With all the effort put into getting a reportingprocess together it is perhaps somewhat harsh tothen criticise the quality of the reports that actuallyare produced. But a look around at many of thereports (both printed and web-based) leads me, andmust lead the audiences, to think that a lot of theeffort is wasted.

If you’re going to the lengths of creating theprocesses, gathering the data, following theguidelines, verifying the information and writing the report, surely it’s absolutely vital to ensure themessages you want to communicate do actually get through.

Why is it then, that reports from many of the UK’smajor corporations are of such poor quality in termsof writing, communication and presentation?

Many of these companies spend enormous amounts ofmoney on their annual reports and other corporatecommunications. And yet their environment and CSRpublications appear not to be taken seriously enoughto merit any real care or consideration, despite thefact that in many instances the very issue at stake isthat of corporate reputation.

The reports are all too frequently technically oralmost academically focused (particularly the moreenvironmentally based reports) and appear to havebeen conceived without an assessment of audienceand message.

It seems to me that all the effort put into generatingthe content for the reporting processes deserves better.

Having said this, the discipline as a whole isundoubtedly maturing and the tools forcommunicating are becoming more sophisticated.

Perhaps the most influential driver of change hasbeen the internet as it has allowed far moreinformation to be published and has encouragedmany organisations to begin reporting to somedegree.

Unfortunately, however, the internet is notnecessarily adding much to the quality ofinformation being published. On the contrary, thereare two very distinct problems.

1. The first is that many companies appear to beusing the internet as something of a ‘cop-out’.They feel that the easiest way to relieve some ofthe pressure from the various groups looking forinformation in this area is simply to ‘putsomething on the website’.

The quality of this information, its relevance andeffectiveness and indeed the quality of themanagement processes behind it do not alwaysstand up to close scrutiny.

‘Companies appear to beusing the internet assomething of a ‘cop-out’…

…it is not an active, persuasivecommunication tool.’

‘The danger is that anobsession with thestandards will stifleinnovation andeffectiveness.’

Directions 13

Methodology

The data published in this document was gathered through telephone discussions with therelevant people in each company and by consulting company reports and websites. We havedone our utmost to ensure that all information is confirmed by the organisation and in onlythree cases the companies chose not to participate and respond.

Our FT-SE 200 listing is taken from the Financial Times data published on Friday 11 May 2001,ranking companies by market capitalisation.

For accuracy this date has also been used as the cut-off point for data gathering. This maymean that some companies have published reports or information since that date. We havesignalled this in all such cases that were brought to our attention.

We have not included investment trust companies in our sample as they tend not to beregarded as ‘trading companies’ but rather they invest in the assets of other ‘tradingcompanies’. This view is open to debate and we would welcome feedback for future editions.

The places of the two companies excluded on this basis have been taken by the companies ranked 201 and 202 on the same date.

ANALYSIS – OVERVIEW

16 companies reported for the first time this year and 16 othersstated their intent to report this year for the first time.

54 companies produce stand-alone full reports.

103 companies report in full or in the Annual Report.

CATEGORIES FOR RESEARCH

A full environment reportA full environment report is defined as a report that:

• identifies the main environmental impacts of the company• contains data on those impacts• reports on actions taken in relation to the impacts• identifies and discusses targets and programmes for the future.

We are also treating a report that covers Health, Safety and Environmentas a full report.

Section in the annual reportWe have defined this on the basis that it needs to be a stand alone sectionand not simply a paragraph in running copy or a few lines in corporategovernance or the Directors’ report. As this is the hardest area to classifyconsistently we have qualified our assessment of these sections withcomments or more detailed descriptions.

GuidelinesWe have aimed not to prompt in this area but have asked people if theyare aware of the GRI or DETR guidelines if no information has beenimmediately offered.

Independent verification statementWe have taken a rigorous approach to this definition but have signalled,where possible, where other forms of audit or assurance are used.

KEY TO ABBREVIATIONS

ACCA The Association of Certified CharteredAccountants

AR Annual Report

BiE Business in the Environment

CSR Corporate Social Responsibility

DETR Department of the Environment,Transport and the Regions

EMS Environmental Management System

GRI Global Reporting Initiative

PERI Public Environmental Reporting Initiative

SHE Safety Health and Environment

UNEP United Nations Environment Programme

Directions 12

companies disclose no substantive environmental or CSR information.


companies have been reporting for 3 years and over. 19 companies have been reporting for over 5 years andBritish Airways have reported for 10 years. (This does not include the now transformed and/or de-merged ex-public utilities).

There is a clear trend towards including CSR issues in environment reports. This is illustrated by the diversity of titles, although the content does not always fulfil thepromise on the cover.

AWG – ‘Environment and Community Report’. BAA – ‘Sustainability Report’.Billiton – ‘HSE and Communities Annual Report’.Diageo – ‘Corporate Citizenship’.Railtrack – ‘Corporate Sustainability Report’. Royal and Sun Alliance – ‘Environmental, Health, Safety and Community Report’. Severn Trent – ‘Stewardship Report’.Shell – ‘The Shell Report. People, Planet & Profits’.United Utilities – ‘Social and Environmental Impact Report’.

companies refer to the GRI guidelines.The key word here is ‘refer’. The awareness of the Global Reporting Initiative seemsto be good. But referring to guidance is one thing, actually following guidelinesappears to be quite another. The general comment appears to be ‘useful but tooinflexible’.

companies refer to the DETR guidelines.The Department of Environment, Transport and the Regions’ guidelines appear tohave been well received but not widely enough disseminated. The two documentsthat companies expressed positive views about were the ‘Getting Started’ guide andthe guidance on greenhouse gas emissions. (‘Helpful and easy to follow’).

companies refer to other guidelines.companies have an independent verification statement.The value of independent verification appears uncertain. Companies appear to feelthat it represents too great an expense for too little obvious benefit. There is nodoubt that independent assessment adds credibility to a report but the jury isobviously still out.

I simply don’t see the pointin verifying data that hasalready been verified forISO 14001.”

“

“GRI is fine as reference, butit’s impossible to apply to a

multinational business withmultiple operations in

multiple cultures.”

28

30

20

14

04

companies publish full printed reports.More are expected in the next 12 months.

companies report on the web only.This figure is surprisingly low. The web has certainly not taken over but, again, nextyear’s figures should prove more enlightening.

companies have combined printed and web-based reports.It is encouraging to see that the majority of reporters still recognise the value ofprinted communication in engaging with their audiences.

3610

42

ANALYSIS


Food & Drug retailers

105 Morrison (Wm) Brief reference in AR.Supermarkets

091 Safeway * 54 * Publish a review of impacts.

043 Sainsbury (J) 5 • • * • • 5 * Planning to move to web only.

017 Tesco •* 30 * No data.

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Comment

054 Boots Company 2 • • • •* 66 * Refer to DETR guidance.

200 Brown (N) Brief reference in AR.

131 Carphone Warehouse * * Short section - no data.

169 Debenhams •* 94 * No data.

062 Dixons Group •* 85 * No data. Small web section on Environment & Community.

057 Great Universal Stores 1 • • • • 115

166 Iceland * * No report but do publish campaigning/issues information online.

045 Kingfisher • •* 118 * GRI as reference. Will be reporting in full this year.

052 Marks & Spencer * • 108 * Overviews published previously. Full Report due in 2002.

094 Matalan

100 Next

171 Signet •* * ’Social, environmental and ethical matters’ section.

165 Smith (W H) 144 Brief reference in AR.

The following is an analysis of reporting by selected industry sector, enabling companycomparisons.

Without being judgmental, the points worth noting are: only 3 retailers produce full reports;transport has strong participation with 3 members exploring social content; the absence of anyreporting activity in the software and computer services sector; the leadership positions ofCarlton Communications and EMI Group in the media and photography sector (as well as thecommitment by BSkyB to begin reporting).

ANALYSIS BY SECTOR

Transport(FTSE ranking on the left) Nu

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Comment

154 Associated British Ports 2 • •* 97 * Some elements of GRI and DETR referred to.

157 Avis Europe •* 138 * No data.

050 BAA 6 • • • •* •** 31 * Broadly follow GRI. Awards won at ACCA. ** Titled ‘Sustainability Report’.

134 BBA 140 Brief reference in AR.

073 British Airways 10 • • • • •* 19 * Titled ‘Social and Environmental Report’.

170 EasyJet Did not participate in research.

145 Eurotunnel * Reference in AR – community focused.

098 Exel •* Did not participate in research. * Some data included.

168 First Group 3 • • • • 122

183 National Express •* 126 * Short Corporate Responsibility section. No data.

116 P & O Steam Navigation 5* • • •** 49*** * 2 yearly reports. ** UNEP guidelines. *** Ranking before demerger.

067 Railtrack 3 •* • • •** •*** 37 * Full printed Report and printed summary, plus full Report online.** Refer to GRI and DETR. *** Titled ‘Corporate Sustainability Report’.

172 Stagecoach • 106 No data.

Software &Computer services

130 Autonomy Corporation

132 Baltimore Technologies Brief reference in AR.

064 CMG Brief reference in AR.

060 Dimension Data

195 FI (now called Xansa) •* 174 * Detailed Stakeholder section.

174 Freeserve No longer UK listed company.

193 Innovation Group

044 Logica Reference to Policy on the website.

082 Misys

080 Sage

133 Sema Policy statement in AR.

Directions 18

Media & Photography(FTSE ranking on the left) Nu

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Comment

137 Aegis Brief reference in AR.

015 British Sky Broadcasting Have committed to report.

176 Capital Radio Brief reference in AR.

076 Carlton Communications 2 • •* 98 * Detailed section in AR.

167 Cordiant Communications

081 Daily Mail & General Trust •* * No data.

119 EMAP Did not participate in research.

068 EMI Group 8 •* • ** 52 * Main Report online, printed summary.** Starting to cover Community issues.

047 Granada Media • 59

025 Pearson Policy statement in AR and online.

039 Reed Elsevier 157 Brief reference in AR and on web.

019 Reuters 176 Brief reference in AR.

191 SMG Brief reference in AR.

180 Taylor Nelson Sofres Brief reference in AR.

150 Trinity Mirror 178 Brief reference in AR.

072 United Business Media 167 Brief reference in AR. Policy stated on web.

030 WPP * 173 * Reference in ‘Corporate Citizenship’ section. No data.

ANALYSIS BY SECTOR

Looking forward

Pressure on companies to report remains strong,especially from the Government and an ever-expanding group of socially responsible investmentfunds. Will this be sufficient to boost the number of reporters? Our research is a starting point and itwould be unwise to draw too many conclusions atthis stage. The future direction of theCSR/sustainability agenda - reporting is but a subset- will depend as much on the health of the economyas the perceived pressures on business fromstakeholders.

Number of reportersOur conversations with companies suggest at least16 first-time reporters are planning to publish in thenext 12 months. If so, this will mean that reportingwill become a majority activity for the UK’s Top 200,which could further encourage the non-reporters toput their heads above the parapet.

GuidelinesReporters now have a surfeit of guidelines. The skillwill be to make appropriate use of those available,while keeping a tight focus on the audience.

ComparabilitySome guidelines, such as those from investmentfunds and the Global Reporting Initiative (GRI) aredesigned to ensure comparability of data. This hasalways been the holy grail of campaign groups. Butit is unlikely that voluntary reporters will slavishlyfollow what are voluntary guidelines and we cansafely predict that reports will continue to publishinformation that is difficult to compare.

BenchmarkingEveryone wants to be top of the heap. Gradingcompanies on their environmental performance, asthe BiE index does, is a sure way to gain publicityand attract the wrath of those at the bottom of thepile. But if the index did not exist it would have tobe invented because of its success at gettingenvironmental issues onto the boardroom agenda.The index does not encourage reporting, per se, butit is perceived by many non-reporters as yet anotheraccursed pressure to publish something. While wesympathise with those who feel set-upon, we knowthe index will continue to play a valuable role.

Financial indexesThe SAM/Dow Jones Index did much to raise theprofile of sustainable development among thoselisted on international stock exchanges. The newFTSE4Good index will undoubtedly raise the profileof environmental and CSR issues among the top 200UK companies.

Sector developmentsThe services sector has quite justifiably felt immuneto pressures to report on their (limited)environmental impacts, but the shift towards socialissues will make it increasingly difficult forcompanies in financial services, computing andmedia to see reporting as something done only bythe dirty.

Influence of the financial communityThere are conflicting signals coming from thefinancial community.

On the one hand the pension funds have beenplacing increasing importance on environmental andsocial performance and yet the results of a recentBiE and MORI survey of analysts suggests that only athird believe environmental policy to be “fairly orvery important”. The jury is still out on whether thefinancial community’s influence on CSR has peakedor will increase.

The PR factorThe shift of emphasis from environment to the ill-defined area of CSR has created an opportunityfor companies to duck the rigours of sustainabilityreporting by populating their publications withpositive stories on community and philanthropicactions.

Will we see - as we did in the early days ofenvironment reporting - the heavy-handed spin ofold fashioned public relations? We hope not, becausemuch of the audience is well informed, highlycritical of business and looking for transparency.Serving candy floss is a waste of time and money.

Directions 19

International overview

Only four of the world’s top 20 companies - one French, one Japanese and two fromthe USA - do not report. This says more about regional differences in the businessattitude to the reporting agenda than a lack of interest among these corporate giantswhose respective revenues exceed the GDP of many of the world’s nations.

The non-reporters (see opposite) are Axa (France), Nippon Life Insurance (Japan),General Electric (US) and Wal-Mart (US). Both US companies continue to be affectedby issues ranging from river pollution to labour rates. Axa’s and Nippon’s sector - retailinsurance and re-insurance - is firmly exposed to the possible effects of climatechange and social issues such as access to financial products by the poor.

That the US and French heavyweights choose to limit their disclosure is consistentwith a more dismissive attitude to environmental issues among businesses in thosecountries. This difference is further underlined when comparing the nature and extentof reporting in the oil sector, where the comprehensiveness of Shell and BP’s approachcontrasts with the slim-line attitude of the world’s biggest oil major, ExxonMobil.

Surveys show that ever-fewer US companies are reporting, a direction that bucks theglobal trend. The current contrarian attitude to the environment and social issuesdisplayed by the Bush administration will probably increase the confidence of CSRsceptics in the USA and we could see a further push back in the number of UScompanies voluntarily disclosing their CSR performance. Those with a more globaloutlook will probably prove the exception, if leaders such as Ford and GM are anindicator - both appear to see definite business benefits from a more open approach.

Large Japanese companies - with the exception of Nippon - continue to show anastute awareness of the world trade agenda, embracing environmental reporting andenvironmental management systems such as ISO 14001. Their reasoning is clearlycommercial and seeks to reap the marketing and reputational rewards of reporting -an opportunity spurned by many in other regions.

Directions 21

Fortune 500 Top 20(Ranking on the left) Nu

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Directions 20

15 AXA (Fr) Website contains information on national community programmes.

17 BP Amoco (UK) 3* • • • • •** * Also previously reported as just BP. ** Titled ‘Environment and Social Review’.

18 Citigroup (US) 1 • • •* * Titled ‘Corporate Citizenship Report’ with limited environmental content.

05 Daimler Chrysler (D) 7 • • • • •* •** * GRI and German Institut fur Okologische Wirschaftsforschung.** Titled ‘Environmental Report’.

03 Exxon Mobil (US) 1* • • • * Previously reported as separate companies.

04 Ford Motors (US) 6 • • • •* •** * GRI. ** Titled ‘Corporate Citizenship Report’.

09 General Electric (US) * * Website contains SHE information.

01 General Motors (US) 6 • • •* •** * GRI. ** Titled ‘Steps Toward Sustainability’.

16 IBM (US) 11 • • • •* * PERI.

10 Itochu Corporation (JAP) 1 • • • •* * Japanese government guidelines.

14 Marubeni (JAP) 1 • • • • •* * Japanese government guidelines.

07 Mitsubishi (JAP) 8 • • • •* * Titled ‘Environmental Sustainability Report’.

06 Mitsui (JAP) 3 • • •

20 Nippon Life Insurance (JAP)

13 Nippon Telegraph & 3 • •Telephone (JAP)

14 Shell (UK/NED) 5 •* • • • •** •*** * Summary report sent to all shareholders with annual report.** Refer to GRI. *** ‘The Shell Report – People, Planet, Profits’.

12 Sumitomo (JAP) 2 • •

08 Toyota Motor (JAP) 3 • • • •

19 Volkswagen (D) 6* • • • • * Reported 2 yearly since 1995.

02 Wal-Mart Stores (US) * * Limited environmental information on website.


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CommentFTSE Top 200(FTSE ranking on the left) Nu

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Comments

042 3i Group •* 102 * Short ‘Community and Environment’ section. No data.

018 Abbey National * •** 86 * Published a Review in 2000. Full Social Report imminent. ** No data.

137 Aegis Brief reference in AR.

179 Aggregate Industries •* 105 * No data. PDF of this section appears on website.

162 Aggreko Brief reference in AR.

177 Airtours 180

086 Alliance & Leicester 127 Brief reference in AR. Produce an ‘Environment Update’ brochure.

127 Alliance UniChem Brief reference in AR.

065 Allied Domecq 1* • • • 46 * Second report due in 2002.

184 Amey 123 Committed to reporting this year.

020 Anglo American 1 • • • • 130

063 ARM Holdings 177 Brief reference in AR.

077 Associated British Foods Brief reference in AR.

154 Associated British Ports 2 • •* 97 * Some elements of GRI & DETR referred to.

005 AstraZeneca 1* • • • ** 53 * First year as merged company. ** Forthcoming report follows GRI.

199 Atkins (W S) 148 Brief reference in AR.

130 Autonomy Corporation

157 Avis Europe •* 138 * No data.

135 AWG 8 • • • •* •** 29 * GRI referred to. ** Titled ‘Environment & Community report’. Won ACCA award in 2000.

050 BAA 6 •* •* •* • •** • 31 * Sustainability fully integrated into AR. ** Follow GRI. ACCA awards won.

027 BAe Systems 73 Brief reference in AR.

132 Baltimore Technologies Brief reference in AR.

036 Bank of Scotland * * 1st report live in August 2001. Brief reference in AR.

010 Barclays 1* • • • •** •*** 63 * Previously published Reviews. ** DETR guidelines. *** Titled ‘Social and Environmental Report’.

046 Bass • 72 Have published ‘Environment Matters’ brochure - review of impacts.

134 BBA 140 Brief reference in AR.

185 Berkeley 133 Brief reference in AR and Policy on website.

034 BG 4 • • • • •* 13 * Referred to GRI and DETR guidelines.

048 Billiton 1 • • • •* •** 48 * Based on GRI. ** Titled ‘HSE and Communities annual report’.

097 Blue Circle Industries 1 • * •* • 57 * Updates provided on web in 2001.** HSE section in AR.

059 BOC •* 78 * Includes performance and data.

158 Bookham Technology 168 Policy statement in AR.

054 Boots Company 2 • • • •* 66 * Refer to DETR guidance.

002 BP Amoco 3* • • • • •** 32 * Previously reported as just BP. ** Titled ‘Environment & Social Review’.

155 BPB * 128 * No data.

124 Bradford & Bingley

121 Britannic 100 Brief reference in AR.

073 British Airways 10 • • • •* 19 * Titled ‘Social and Environmental report’.

031 British American Tobacco Planning to report.

144 British Energy 5 •* • 3 * Full report on web, printed summary.

111 British Land Company •* 135 * No data or targets.

015 British Sky Broadcasting Have committed to report.

009 British Telecommunications 7 • • • •* •** 12 * Refer to GRI. Won ACCA award in 2000. ** Published Social Report.

200 Brown (N) Brief reference in AR.

138 BTG Brief reference in AR.

122 Bunzl Brief reference in AR.

011 Cable & Wireless 2 • • •* ** 24 * Reference made to GRI. ** Refers to Community and Sponsorship.

35 Cadbury Schweppes 3 • • •* 25 * Broadly follow GRI.

161 Cambridge Antibody Brief reference in AR.Technology

087 Canary Wharf 92 Brief reference in AR (Policy statement).

095 Capita

176 Capital Radio Brief reference in AR.

076 Carlton Communications 2 • •* 98 * Detailed section in AR.

131 Carphone Warehouse •* * Short ‘Corporate Responsibility’ section. No data.

099 Celltech 143 Planning first report.

032 Centrica 1 •* • •** 62 * Summary in print, full web report. ** DETR guidance.

012 CGNU 3* •** • • •*** 7 * Previous reporting as CGU. ** Both are Summary Reports.*** Follows FORGE guidelines.

194 Chelsfield Brief reference in AR.

151 Chubb

139 Close Brothers

064 CMG Brief reference in AR.

164 Cobham Brief reference in AR.

028 COLT Telecom 182 Brief reference in AR.

149 Cookson Brief reference in AR.

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167 Cordiant Communications

112 Corus 1* • ** • *** 55 * Previously reported as British Steel. ** Limited info on web. *** Validation only.

081 Daily Mail & General Trust •* * No data.

169 Debenhams •* 94 * No data.

013 Diageo 3 •* •** •*** 74 * Group report is web based. Operating company reports are print based.** Have referred to GRI. *** Within ‘Corporate Citizenship’ web section.

060 Dimension Data

062 Dixons Group •* 85 * No data. Small web section on Environment & Community.

170 EasyJet Did not participate in research.

178 Egg * 79 Small statement but is a newly listed company.

093 Electrocomponents Planning to report.

119 EMAP Did not participate in research.

068 EMI Group 8 •* • ** 52 * Main Report online, printed summary.** Starting to cover Community issues.

040 Energis Planning to report.

102 Enterprise Oil 6 • • • • •* 104 * Referred to GRI and DETR.

145 Eurotunnel * * Brief reference in AR.

098 Exel •* Did not participate in research. * Some data included.

195 FI (now called Xansa) •* 174 * Detailed ‘Stakeholder Report’ section.

168 First Group 3 • • • • 122

152 FKI Planning to report.

174 Freeserve No longer UK listed company.

147 Galen Brief mention in AR.

109 Gallaher •* 107 * Section from AR also appears on the web.

055 GKN •* 84 * Section on Social Responsibility with data.

003 GlaxoSmithKline 1* • • • • ** * First year as merged company. **Participated as separate companies.

021 Granada Compass • 59

047 Granada Media • 59

057 Great Universal Stores 1 • • • • 115

023 Halifax •* 83 * No data. PDF of AR section on the web.

148 Hammerson 137 Planning to report.

085 Hanson 1 • • • * 113 * Planned verification for 2001 report.

049 Hays • •* 163 * DETR guidelines.

089 Hilton Group •* 153 * No data.

004 HSBC Holdings •* * First year - section called ‘A sense of responsibility’.

166 Iceland * * No report but do publish campaigning/issues information online.

078 ICI 7 • • • •* 68 * Starting to take GRI guidelines on board.

189 IMI 65 Brief reference in AR. Planning to report.

083 Imperial Tobacco •* 145 * No data.

186 Independent Insurance 162 Brief reference in AR.

114 Innogy * * * Formerly part of National Power - reported for 9 years. First report for Innogy due Summer 2001.

193 Innovation Group

108 International Power * • •** * * Formerly part of National Power - reported for 9 years.First report since demerger due Summer 2001. ** Follow GRI and DETR.

053 Invensys • 64

192 Jardine Lloyd Thompson

113 Johnson Matthey * • 69 * Section on web but not a report.

143 Kelda 6 •* • •** •*** 82 * Printed summary, full report online. ** DETR guidelines. *** Titled ‘Environment and Community Site’.

045 Kingfisher • •* 118 * GRI as reference. Planning to report.

201 Kingston Communications * * Section in next annual report - due imminently.

070 Land Securities * • 70 * First full report imminent.

146 Laporte • Company now taken over.

106 LASMO 1 • •* • •** 125 * PDF plus extra data. ** Titled ‘Environmental & Social Review’. Company now taken over.

058 Lattice * • * * Formerly reported as part of BG. Planning to report.

33 Legal & General •* 96 * ‘In the Community’ section. No data.

142 Liberty International Brief reference in AR.


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008 Lloyds TSB 2 •* • • 58 * In the form of a pack of information.

044 Logica Reference to Policy on the website.

126 Lonmin •* 142 * Some performance data.

136 Man (E D & F) Brief reference in AR.

016 Marconi 129 Brief reference in AR. Planning to report.

052 Marks & Spencer * • 108 * Overviews published previously. Full Report due in 2002.

094 Matalan

156 Millennium & Copthorne Brief reference in AR.

082 Misys

105 Morrison (Wm) Brief reference in AR.Supermarkets

183 National Express •* 126 * Short Corporate Responsibility section. No data.

038 National Grid Group 5 • • • • * 36 * Moving to Sustainability report this year.

100 Next

202 Northern Foods •* ** 164 * Light on environment issues.** Publish a separate Community Report with environment section.

123 Northern Rock 2 • •* • • •** 88 * PDF online only. ** DETR guidelines.

187 Novar Policy statement in AR.

088 Nycomed Amersham 1 •* • 146 * Summary report only. Full report due in 2002.

051 Old Mutual •* * ‘Corporate Citizenship’ section. No data.

116 P & O Steam Navigation 5* • • •** 49*** * 2 yearly reports. ** UNEP guidelines. *** Ranking before demerger.

117 P & O Princess Cruises • 49* Planning to report. * Ranking before demerger.

175 Pace Micro Technology 149 Brief reference in AR.

190 Parthus Technologies

025 Pearson Policy statement in AR and online.

198 Peel

196 Pennon 5* • •** • • 90 * Previous reports as South West Water. ** PDF only.

141 Pilkington 2 • • 120

074 Powergen 9 • • • • •* ** 50 * Follow outline of GRI and DETR. ** Moving in this direction.

159 Premier Farnell 131 Moving towards reporting.

110 Provident Financial •* ** * Mainly Community focused. ** Community Report published.

014 Prudential • •* ** 79 * Referring to UNEP guidelines. ** Planning Social Responsibility Review.

163 Psion Brief reference in AR.

067 Railtrack 3 •* • • •** •*** 37 * Full printed Report and printed summary, plus full Report online.** Refer to GRI and DETR. *** Titled ‘Corporate Sustainability Report’.

160 Rank Group Brief reference in AR.

056 Reckitt Benckiser Brief reference in AR.

039 Reed Elsevier 157 Brief reference in AR and on web.

120 Regus

066 Rentokil Initial 87 Brief reference in AR.

019 Reuters 176 Brief reference in AR.

188 REXAM •* * No data.

024 Rio Tinto 5 • • • • •* •** 14 * Refer to PERI and GRI. ** Titled ’Social and Environmental Review’.

128 RMC 1 * • • •** 110 * Individual businesses produce printed reports. ** Titled ‘Social Performance’ but no data on social issues.

090 Rolls-Royce 3 * * • 26 * Planning printed report. 2 year reporting cycle.

041 Royal & Sun Alliance 1 • • •* 33 * Titled ‘Environmental, Health, Safety and Community Report’.

007 Royal Bank of Scotland 61 Planning to report late 2001.

091 Safeway * 54 * Publish a review of impacts.

080 Sage

043 Sainsbury (J) 5 • • * • • 5 * Planning to move to web only.

075 Schroders 103 Brief reference in AR.

096 Scottish & Newcastle 2 • •* •** 38 * PDF only. ** ‘Stakeholders’ section - minimal environment content.

061 Scottish & Southern Energy 2* • •** • • •*** 39 * 2 yearly reporter. 2nd report imminent ** PDF only. *** GRI and DETR.

037 Scottish Power 5 • •* • • 2 * PDF only.

181 Securicor * 165 * One paragraph committing to set targets.

133 Sema Policy statement in AR.

118 Serco 147 Brief reference in AR.

115 Severn Trent 8 • • • * •** •*** 4 * No statement but data is independently assessed through ISO 14001.** Refer to GRI. *** Titled ’Stewardship Report’.

006 Shell 5 • • * • •** •*** 1 * Summary report sent to all shareholders with annual report.** Refer to GRI. *** ‘The Shell Report – People, Planet, Profits’.

About salterbaxter

salterbaxter are a design and communicationsconsultancy who specialise in brand consultancyand corporate reporting. As part of this we havedeveloped a leading position in environment andCSR reporting.

We advise major companies on the strategy fortheir communications programmes and we designand produce those programmes in both print andinternet-based format (and various combinationsthereof).

Our work for the EMI Group was awarded theDBA/Management Today Design Effectivenessaward in 2000.

Client experience in this field includes: BAABlue Circle IndustriesCiba Specialty ChemicalsCable & WirelessEMI GroupErnst & YoungLondon ElectricityUnilever

Find out more about us at: www.salterbaxter.comTel: +44 (0)207 401 9401

About Environmental Context

We believe that a responsible business can alsobe profitable. We work with multinationals in allsectors to help them understand the sustainabledevelopment agenda and devise andcommunicate more sustainable strategies.

We produce environmental and CSR reports, helpcompanies with their internal and externalcommunications, and provide strategic support incorporate relations.

Our team includes: • Lord Tim Clement-Jones CBE, chairman, former company

secretary and legal adviser to Kingfisher. Tim is anexperienced adviser on government policy developmentand has assisted many large companies formulate theirresponse to environmental legislation.

• Peter Knight, director, a former environmental journalist. • Simon Propper, managing director, an environmental

consultant with 10 years experience following a degreein chemical engineering.

Our core services:• Use of the internet for sustainability reporting and

communications• Development and writing of external communications• Opinion leader surveys• Sustainability/CSR strategy development• Pressure group briefings and environmental issue

tracking• Internal communications, workshops and events• Facilitating and chairing meetings• Environmental management systems• Supply chain assessment and product environmental

reviews.

Our clients include: AstraZeneca www.astrazeneca.comCarlton Communications www.carltonplc.co.ukEMI www.emigroup.comHanson www.Hansonplc.comICI www.ici.comOrange www.orange.co.ukShell www.shell.comUnilever www.unilever.com

Find out more about us at: www.econtext.co.ukTel: +44 (0)207 251 0050

Printed by Wace, using production facilities certified to ISO 14001 and ISO 9002.

Wace achieved ISO 14001 in March 2000 and runs a full Continuous Environmental Improvement programme. The programme aims to deliverreductions in solvent and energy use, waste, emissions and resources in all areas of the printing process.

Printed on Munken Lynx, manufactured by Munkedals AB and supplied by Howard Smith Paper, both certified to ISO 14001.

The paper is accredited with the Nordic Environmental Label (304 078), but the mill’s commitment goes a lot further, and strives to be the mostenvironmentally friendly paper mill in the world. Thanks to exceptionally low water consumption, (approximately 2.4 litres/kg of paper produced),the emissions are amongst the lowest in the industry. The mill aims to be the first to manufacture with a completely closed water system, withzero emissions to water.

More details about the Environmental Policy and Statement for the Munkedals mill are available at www.munkenpapers.comTel: ++44 (0)1883 331800.

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