Investors urge for better environmental reporting

The recent publication of EIO’s environmental tracking (ET) carbon rankings highlighted the low level of greenhouse gas (GHG) emission transparency particularly of Northern American companies. Now the corporate social responsibility (CSR) coalition, a group of financial institutions, NGOs and investors led by Aviva Investors calls for integration of corporate social responsibility (CSR) data into financial reports. Politicians should adopt international agreements requiring companies to publish so called “integrated reports”, which substantially improve the level of level of CSR disclosure.

ON green policy. It is interesting to note that voluntary measures have obviously failed to sufficiently incite companies to properly disclosing social responsibility information. Based on EIO’s very comprehensive dataset of the word wide biggest 800 companies (including more than 300 from the US), only about 45% disclose complete GHG emission data; the US are well below global average. Therefore, considering the lack of satisfying corporate initiative, politics need to commit companies to disclose CSR data, just as it requires them to report fundamental financial data. CSR performance will guide more and more investment decisions and good economic policy and regulations takes that into account allowing for better informed investment decisions.

Source: Greenbiz

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