Knowing how sustainability companies conduct business has become increasingly important for shareholders, investors and customers (Ethical Investment).
As the stakeholders seek deeper insight into the impact of a company’s business on the environment and society, companies can improve their credibility and trust with transparent disclosure of ESG performance. Forward –looking companies are already preparing to meet more rigorous disclosure expectations from stakeholders and gain competitive advantage over others (Ethical Investment).
Disadvantaged
Governance & Accountability Institute has partnered with Bloomberg LP to examine ESG disclosure data for S&P500 companies reporting vs. not reporting on sustainability. Using the Bloomberg Professional information platform, the results revealed that companies not publishing sustainability reports are disadvantaged by lower average Bloomberg ESG Disclosure Score assigned by Bloomberg LP reflects the disclosure activities of companies related to their ESG strategies, performance and related activities. The overall results of the joint analysis show that publish sustainability reports are scoring higher on Bloomberg ESG Disclosure scores than companies that do not report.
Bloomberg “E” (Environment) Disclosure Score
The average Bloomberg “E” Disclosure score of S&P 500 non-reports is 5, while reports enjoy an average of 30, a 100 percent higher average “S” score for reporters.
Bloomberg “S” (Social) Disclosure Score
The average Bloomberg “S” Disclosure score of S&P500 non-reporters is 15, while reporters enjoy an average 30, a 100 percent higher average “S” score for reporters.
Bloomberg “G” (Governance) The average Bloomberg “G” Disclosure score of S&P 500 non-reporters is 52, while reporters have slightly higher average of 58, a 12 per cent higher average score of “G” for reporters.
Transparency
According to Hideki Suzuki, Senior Corporate Governance Data Analyst at Bloomberg, the Bloomberg ESG disclosure score is purely a gauge on transparency assessing how much ESG quantitative and policy-related data a company is disclosing, regardless of improvement or deterioration on the metrics over time.
Scores are low for disclosure without quantum. This explains low scores among reporters. For example, one can find lengthy sustainability reports with charts and graphs but containing no numerical data (Ethical Investment).
The G&A Institute research team found that 81 percent of the S&P500 companies published a sustainability or corporate responsibility report in 2015. In 2011, only about 20 per cent of S&P500 companies had reported, which indicates the dramatic rise in the number of large public companies reporting on sustainability from 2011 to 2015.
(Ethical Performance Magazine, May 2016)
Ethical Investment & Financial Advice Bristol
If you would like to speak with one of our Independent Financial Advisors and potentially receive financial advice, please contact us on 0117 923 7652. We are based in Clifton, Bristol but we are happy to service clients from across the UK and we provide free initial meetings at our client’s convenience.
Churchill Wealth Management Limited is located at 13 Alma Vale Rd, Bristol BS8 2HL, United Kingdom.
About Us: Churchill Wealth Management is a team of independent financial advisors/financial advisers (IFAs) based in Clifton, Bristol (http://www.wealthmanagement.co.uk).
We provide independent financial advice, including pension advice, investment advice, inheritance tax planning, protection/insurance advice and ethical investment advice through our trading style Churchill Ethical Investment (https://www.churchillethicalinvestment.com).