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Readers Agree: Sustainability Reporting Enhances Brand Reputation – New Proof from GRI Survey

Date: May 09, 2008

Ninety percent of sustainability report readers agreed that their views of a company had been influenced by reading its report – of these, 85% reported a more positive perception of the company, according to a new report released today by the Global Reporting Initiative (GRI).

Count me in: The readers' take on sustainability reporting, commissioned by GRI and undertaken by KPMG Netherlands and UK-based SustainAbility, finds that publishing information on sustainability performance has a strong positive impact on readers' perceptions of a company and adds value to the brand. The report is based on the findings of the largest-ever global survey of the readers and non-readers of sustainability reports and provides unique insight into their views and opinions including, if, how and why they are using reports.

Wim Bartels of KPMG Sustainability, who along with Judy Kuszewski of London-based SustainAbility authored the report, said: "We found the clarity and consistency of these findings surprising. They suggest that not only do audiences for sustainability information exist, but that they are keen to understand and are open to being influenced by reports." Bartels added, "Indeed, the often-cited contention that reporters cannot possibly satisfy many different stakeholder groups may need to be revisited."

Most surprisingly, readers' opinions were generally consistent across all groups. Respondents, who identified themselves as individuals or members of the business, notfor- profits, and investment communities all agreed on the elements that should be presented in a report. Readers cited that a company's ability to establish a link between its sustainability strategy and its overall business strategy in the report of top importance. Readers viewed adherence to sustainability reporting standards and telling a balanced story – reporting on the good and the not-so-good news - as vital to building trust and credibility.

Ernst Ligteringen, Chief Executive of the Global Reporting Initiative said: "Openness in disclosing economic, environmental and social impacts can give companies a competitive edge, but people aren't fools. They read these reports with a purpose and the want the truth, and particularly the whole truth - not just selective reporting where their performance is good."

As more companies use sustainability reporting to provide information on how they are responding to pressing concerns like climate change and supply chain issues, it's important for companies to create these reports with the readers in mind. Count me in: The readers' take on sustainability reporting, together with the Readers Choice Awards announced yesterday at GRI's Amsterdam Global Conference on Sustainability and Transparency, provides evidence that sustainability reporting is maturing and becoming the norm rather than the exception.

For more information or to obtain a copy of the report, visit: www.globalreporting.org/Survey



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