Laptop Battery The number of major firms issuing social and environmental impact reports has doubled in the past three years as firms heed growing calls to shed light on their operations, according to a new study.
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Thinkpad Almost half of the top 250 of the Global Fortune 500 companies issued environmental, social or sustainability reports in 2002 in addition to their financial reports, up from about one quarter in 1999, according to data released this week by consultancy KPMG and the University of Amsterdam.
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Microsoft Japan led the list of countries, with 72 percent of its top 100 companies publishing separate reports. It was followed by the UK at 49 percent, the United States with 36 percent, the Netherlands at 35 percent and Germany at 32 percent.
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Laptop Computers Companies typically issue the reports to help recruit and keep employees, highlight certain cost savings, help gain access to new markets and attract ethically conscious investors, KPMG said.
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Laptop Computer The European Parliament this week endorsed a proposal that multinationals assess the environmental and social impact of their businesses in their annual reports. Legislation would have to come from the European Commission to make it a requirement.
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Desktop Computer While no clear rules exist on how to compile such reports, the Global Reporting Initiative launched last month at the United Nations headquarters by a coalition of governments, businesses and public interest groups came with guidelines to measure social and environmental impacts.
Notebooks Japan has issued guidelines on reporting social and environmental impact, while France, Norway, Denmark and the Netherlands all require some form of social reporting.
Lenovo The study indicated environmental reporting is more firmly established than social reporting, but both are on the rise. A quarter of the reports in the study were verified by third parties to boost the companies' credibility.
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Travelstar While greater transparency may help a company's public image, a key factor for companies weighing whether to report on their operations could be the benefit to their share price, KPMG said in the report.
Gateway "Listing in new indices such as the Dow Jones Sustainability Group Indexes and FTSE 4 Good index increases your profile in the market and increases the tradability of your stock and leads to higher stock value," Amsterdam University professor and KPMG partner George Molenkamp told Reuters.
Laptop Parts "Ethical funds do better, or less badly, than the performance of other funds. The drivers from the financial world are one of the main drivers of sustainability," he added.
Software The Dow Jones Sustainability Index, which includes the top 10 percent of companies viewed as leaders in sustainable development, outperformed the Dow Jones Global Index in the five years up to August 2001.
Hard Drives With the new openness, companies also open themselves up to greater scrutiny, Molenkamp said.
Electronics "Companies are playing with fire these days. If they do not practice what they preach, they will be considered as liars and that will hurt their credibility on the eyes of the public and financial markets."
By Wendel Broere
Reuters - 5/30/2002
Topic: Green Living
