Tuesday, 27 May 2008

UK: survey of FTSE100 companies: environmental, social and governance issues

Ethical Investment Research Services has published a report titled FTSE100 snapshot: Trends in ESG performance, which explores the progress FTSE100 companies have made on environmental, social and governance (ESG) issues over the past 5 years. The report states that "FTSE 100 companies are making good progress on ESG issues, however a small minority of companies continue to demonstrate poor performance" and highlights the following findings (to quote directly from the report):

[1] Greatest improvements have been seen in environmental policy development, as well as human rights and supply chain management

[2] Progress has been slower in areas such as environmental disclosure, equal opportunities and board diversity

[3] Responsible investment, has and will continue to be, a key driver for improved corporate social responsibility

[4] Other drivers for improved performance include increased regulation, continued shareholder and stakeholder pressure or a recognition that proactive management of ESG issues can lead to competitive advantage

[5] The future trend is for continued improvement in management response and a widening of scope as ESG issues are increasingly viewed as business critical risk issues

The report is available here and a press release is available here.

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