Jon Lukomnik writes:
Today’s report from SI2 and IRRCi is chock full of facts that detail the state of the art of sustainability and integrated reporting in the S&P 500. It’s definitely maturing, but fully integrated reporting is rare.
78% of S&P 500 companies issue a sustainability report.
40% of S&P 500 companies include voluntary sustainability discussions in annual financial reports or other regulatory filings. This is a key signal that an increasing number of companies believe sustainability issues are financially material. The reporting, however, varies widely.
Among companies that issue sustainability reports, 95% offer quantified, annually comparable environmental performance metrics; two-thirds set quantified and time-bound environmental goals. Some 86% offer social performance metrics, but only 40% set quantified social goals.
Only 14 S&P 500 companies issue what Si2 considers to be fully integrated reports, though this is a 100 percent increase from five years ago. Integrated reporting provides a holistic look at material information that goes beyond corporate financial disclosures and gives investors insight on a company’s risk and value creation potential
Only 36% of the reports are assured by an outside firm, and the assurance is only partial for 90% of those.