News Index

Search for news:

WASHINGTON, D.C.///October 6, 2004/// In the wake of years of corporate scandals, an unprecedented coalition of analysts at 18 socially responsible investment firms representing over $230 billion in assets is urging publicly traded companies around the world to meet a higher standard of reporting on corporate governance, environmental, labor and other key issues.

In a joint statement, the analysts recommend that companies start reporting annually on their key social and environmental policies, practices and performance. The statement notes that companies are facing a growing number of questions and request for reports about these issues from investors, customers, environmental and labor groups, and the public. However, the manner in which companies provide such information now varies widely. For the first time, the coalition of socially responsible investment analysts is sending a clear signal that companies should base their reporting on the Global Reporting Initiative¡¦s (GRI) Sustainability Reporting Guidelines.

The GRI is an independent institution that has developed standardized sustainability reporting guidelines with the active participation of representatives from business, accounting, investment, environmental, human rights, research and labor organizations from around the world. GRI indicators include measures of economic performance (such as total payroll and community donations); environmental performance (such as greenhouse gas emissions and water use); labor practices (such as worker health and safety and diversity); human rights (such as policies around child labor and indigenous rights); society (such as community impacts, bribery, and political contributions); and product responsibility (such as customer health and safety, advertising, consumer privacy).

Trillium Asset Management Senior Social Research Analyst Steve Lippman said:¡§Companies have been asking us for guidance on how to meet the skyrocketing demands for information. At the same time, a growing set of investors is relying on data on companies¡¦ social and environmental performance to make investment decisions. With this statement, we recommend ways that companies can increase the credibility, comparability, and utility of their reporting.¡¨

The standardized disclosure process recommended by the socially responsible analysts could actually work to reduce the burden on companies, which could use a comprehensive report to respond to a wide variety of information requests from investors and other stakeholders. The analyst statement suggests that a company¡¦s Global Reporting Initiative report should be the first document investors and research analysts consult for social and environmental performance information before asking companies to fill out surveys and questionnaires.

A number of major U.S. companies are basing their reporting on the GRI guidelines, including Citigroup, Ford, General Motors, Hewlett-Packard, and Starbucks. Intel is one company that has been moving toward full compliance with GRI and has provided expanded reporting to socially responsible analysts since 1994.

Intel Corporation Director of Corporate Responsibility Dave Stangis said: ¡§I have been engaging the social investment and research community for several years. These groups own Intel shares or create indices that incorporate Intel stock. They are a key stakeholder group and I value their input. Our stakeholders look to us to disclose key environmental and social data so they can compare and judge our performance. It makes clear business sense for Intel to meet that need. Our shareholders and communities expect it, and it helps us improve our performance. GRI has provided a flexible framework to achieve those goals since 1999.¡¨

Global Reporting Initiative Chief Executive Ernst Ligteringen said:¡§The analyst community has spoken - there is a need for fuller disclosure of business risks and opportunities facing companies today. This will only work for all the players involved - investors, companies, and other stakeholders - if based on a generally accepted framework that establishes common expectations for publicly reported information. GRI's Sustainability Reporting Guidelines are already used by nearly 600 companies worldwide, and I feel that this strong statement of support from the analyst community will spark more interest in GRI-based reporting from US companies.¡¨

The joint analyst statement is a project of two working groups of the Social Investment Forum: the International Working Group (IWG) and the Social Investment Research Analysts Network (SIRAN). The Social Investment Forum is a national nonprofit membership organization that promotes socially responsible investing.         

Signatories to the joint statement include the following firms: Boston Common Asset Management, LLC, Calvert Group, Christian Brothers Investment Services, Citizens Advisers Inc., Domini Social Investments LLC, Dreyfus Premier Third Century Fund, Inc. / Dreyfus Socially Responsible Growth Fund, Inc., Ethical Funds, Green Century Funds, ISIS Asset Management, plc, Mennonite Mutual Aid, Neuberger Berman Socially Responsive Investing, Real Assets, Trillium Asset Management Corporation, Pax World Funds, The Pension Boards - UCC / United Church Foundation, Progressive Asset Management, Inc., and Walden Asset Management, a division of Boston Trust & Investment Management

In addition, the following organizations have expressed support for this statement: Ceres, Innovest Strategic Value Advisors, Inc., Interfaith Center on Corporate Responsibility (ICCR), Investor Responsibility Research Center, Inc. (IRRC), Jantzi Research Inc., KLD Research & Analytics, Inc.

For the full text of the analyst statement, go to www.socialinvest.org on the Web.

EDITOR¡¦S NOTE: A streaming audio recording of the news event will be available on the Web as of 6 p.m. EDT on October 6, 2004 at http://www.socialinvest.org