• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Directions 2006 - Is Corporate Responsibility in Your Company's Blood
 

Directions 2006 - Is Corporate Responsibility in Your Company's Blood

on

  • 2,119 views

Is corporate responsibility in your company's blood

Is corporate responsibility in your company's blood

Statistics

Views

Total Views
2,119
Views on SlideShare
2,095
Embed Views
24

Actions

Likes
1
Downloads
43
Comments
0

2 Embeds 24

http://www.salterbaxter.com 13
http://salterbaxter.sbstaging2.co.uk 11

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Directions 2006 - Is Corporate Responsibility in Your Company's Blood Directions 2006 - Is Corporate Responsibility in Your Company's Blood Document Transcript

    • DIRECTIONS THE FULL REPORT 2006 TRENDS IN CR REPORTING 2005–06 IS CORPORATE RESPONSIBILITY IN YOUR COMPANY’S BLOOD?
    • Contents 02 Looking for corporate responsibility behind the label by Rowland Hill, M&S 01 Welcome to Directions 06 06 Corporate Responsibility: more than skin deep? Lisa Walden, internal communications consultant 10 Embedded Tests 17 Embedded Tests The winners 33 The panel’s winners 18 34 The panel Euro 250 and FTSE 100 Analysis 35 Euro 250 and FTSE 100 Analysis overview 48 About salterbaxter
    • Directions 06 Trends in CR reporting 2005–2006 Welcome to Directions 06, a A report by salterbaxter look at embedding corporate responsibility. The holy grail of corporate responsibility has been that this approach to doing business becomes an Nigel Salter, salterbaxter intrinsic part of a company’s day-to-day operations nsalter@salterbaxter.com and decision-making. Much head scratching has been done over the years to work out how to do it. Has anyone had a breakthrough? Lucie Harrild, salterbaxter lharrild@salterbaxter.com This year Directions has decided to put some Rowland Hill from Marks & Spencer talks about of the UK’s largest companies under the the challenges M&S has faced in its quest to microscope to see if corporate responsibility embed corporate responsibility in the business is being embedded in the organisation. Has and in the brand. Lisa Walden, an internal anyone found the secret to injecting corporate communications specialist, gives a view on responsibility into the heart of an organisation communicating corporate responsibility to and seeing it circulate into every fibre? employees and ensuring the people Do the people get it? If it had happened, understand the strategy. would we know? After the success of last year’s judging panel So we have run some tests on a select group we decided we needed an update on who within the FTSE 100 to see if corporate is reporting effectively, so the panel is back. responsibility is in their blood – right down Ten experts have studied the FTSE 100 and to seeing if the switchboard knows what we their findings start on page 18. are talking about! The tests are not diagnostic – there are many things a company should And last but not least we’ve researched the be doing in order to have embedded corporate FTSE 100 and EURO 250 to see what they responsibility and some of the evidence could have produced this year. be confidential information – but turn to page 10 to draw your own conclusions. Happy (and healthy) reading! This year we have two contributors who bring us the reality of embedding corporate responsibility. DIRECTIONS 06 01
    • Looking for corporate responsibility behind the label Rowland Hill Corporate Social Responsibility/ Sustainability Manager, Marks & Spencer As you’re reading Directions ‘06 it’s probably fair to assume that you’re someone who ‘gets’ Corporate Responsibility. 02 DIRECTIONS 06
    • The challenge is that many of the variety is supportive and well intentioned M&S CR team has done a lot of hand- people with whom you work don’t. Some but in truth only active leadership can holding during the initial ‘getting to of your colleagues will be CR-agnostic, a ‘cut through’ to the organisation’s strategy. know you’ phase. minority might even claim to be anti-CR What I’ve learned is that if the senior team and worst of all are those obsessives aren’t in a position to provide leadership All successful organisations have a clear who want to use it to pursue their own on CR then you have to go and find it business strategy. You know the sort of CR agenda. How do you keep everyone elsewhere. Look to the non-executive thing, to be the fastest, cheapest, best, aiming in the same direction through directors or perhaps the leader of an most reliable, most stylish etc. To my the good times and bad? important business division. What you’re mind the single most important piece of looking for is someone who is effective information a CR practitioner can have is At Marks & Spencer we clearly start within the organisation, ‘gets’ CR and the answer to the question: ‘How does CR with a huge debt to our heritage in is respected. support our strategy?’ If you can answer that we’ve always had the ability to this with clarity, knowing which parts attract ethically minded individuals as Next up is governance and processes. of the CR agenda really matter to key customers, employees, suppliers and Compared to many organisations M&S stakeholders, along with the organisation’s shareholders. But over the last decade places a greater reliance on its people strengths and weaknesses I really believe the retail marketplace has undergone rather than its processes so I won’t dwell that you’re half way there. If the answer significant change. Expectations and here too long. You need to connect the doesn’t exist within the organisation go personnel have all moved on and yet leadership of the business with its CR out and start building a consensus about on the whole we’ve managed to keep performance and ensure stakeholder what it might be. Constructing simple lists CR moving forward in the right direction. engagement with appropriate responses. of what it does and doesn’t include is a It hasn’t always been easy and there It’s always easier to motivate people really good starting point. At one point we have been times when we’ve had if you can identify positive benefits even had every part of the business with to retreat from the odd battle in rather than the avoidance of risk. We’ve their own little set of pictures showing the order to win the war. Having tried put in a system with a Board level CR issues that mattered. This kept focus and most approaches I’ll run through the Committee supported by a CR Forum of prevented wasted energy in responding techniques that worked the best for us. senior managers and heads of department to passing fads or distractions. across the business. That said, what we achieve still depends hugely on the energy c Leadership is terribly important... What you’re and commitment of our people. c Actions speakbehaviour than words. The louder looking for is someone The quality of our relationships with and deeds of an organisation who is effective within stakeholders is also hugely important. Much of this is about basic courtesy and have to match up to the the organisation, ‘gets’ acknowledging that sometimes the most rhetoric. d CR and is respected. d unexpected sources can provide valuable insights into your business. At its best Leadership is terribly important. In various these relationships can help form and capacities I’ve worked for M&S for nearly even deliver your future strategies. a quarter of a century seeing out the old That said, many people in corporate life family leadership up to the present day. can feel very uneasy about face-to-face During that time we’ve had both passive meetings with the likes of campaign and active leadership on CR. The passive groups and over the last few years the DIRECTIONS 06 03
    • Actions speak louder than words. The formulated within the CR team over a and animal welfare groups if we were behaviour and deeds of an organisation number of years. The concept is that we going to mention them or their campaigns. have to match up to the rhetoric. In are asking our customers to look beyond In order to ensure that our employees the long-term, organisations have to be the product that they see in the store and were informed we even launched the trusted to deliver on their services as consider all of the CR credentials that campaign two weeks early behind well as to act in the wider interests of we’ve addressed on their behalf. After all, the scenes in our stores and everyone society. This needs not only to be visible even the most sustainable product will look received a key ring with copies of the but increasingly to provide the option much the same as the most polluting and planned adverts on them. for stakeholders to feel empowered by unethical. The difference lies in the way it participating in something positive. It has been produced and the level of trust ‘Look behind the label’ has given us can be a community project, recycling in its provider. What made the campaign an accessible means of talking CR with or choosing the ethical product. so effective, however, were the skills in employees and customers without the execution provided by our colleagues in technical jargon getting in the way. Finally there is what I’ll call the Brand marketing and communications. Almost X Factor. We live in a world of almost nine months before the first adverts Many of the traditional tools that CR limitless choice and increasing complexity. appeared the groundwork was being set practioners use such as governance, We can’t possibly review all the detail so by using our customer research combined management and stakeholder engagement we use brands to help us make choices. with our CR Report to identify the overlaps systems are clearly important. However, Even within the world of CR reports of high consumer expectations and good our recent experiences suggest that the the format, content, assurance and M&S performance. best outcomes are achieved by the even choice of assurance providers CR holy trinity of leadership, strategy all position our CR brand. Good brand and marketing. This takes CR beyond management has to be honest. One of the reasons that ‘Your M&S’ has been c Even the most sustainable product will look much the the specialist functions and cedes ownership to some unorthodox functions so successful for Marks & Spencer is that same as the most polluting such as marketing and communications. it genuinely reflects the way employees In itself this is a challenge but perhaps and customers see the company. At once and unethical. The difference is the ultimate test of the oft-quoted you have a means of brand positioning lies in the way it has been 21st century cliché about CR being in that rings true but also provides direction. produced and the level of a company’s DNA. For us, part of this has also included what is effectively a CR sub-brand called ‘Look trust in its provider. d behind the label’. The genesis of ‘Look The drafting process required the behind the label’ was a result of the clear co-ordination of many different business direction provided by our Chief Executive, functions and we went out and consulted Stuart Rose, and ideas that had been with stakeholders such as environmental 04 DIRECTIONS 06
    • Our recent experiences suggest that the best outcomes are achieved by the CR holy trinity of leadership, strategy and marketing. This takes CR beyond the specialist functions and cedes ownership to some unorthodox functions such as marketing and communications. DIRECTIONS 06 05
    • Corporate Responsibility: more than skin deep? Communicating and embedding a CR strategy internally can be a bit like using an anti-ageing cream – it takes time for the results to show and you have to keep rubbing it in. Lisa Walden Internal communications consultant, and ex-Director of Internal Communications, Prudential At first, it seemed to go against the But is this enough for employees? natural order of things. Getting senior Employees have a view of the company’s managers to buy in to a CR strategy impact on society, the big issues, the that could challenge the very source stakeholders’ perspective and even the of a company’s profitability seemed measures used to tackle CR. Surely this unlikely, if not a fool’s errand. must be positive. But is it enough? No. Pharmaceutical companies addressing product safety concerns? Tobacco The internal communications dilemma producers focusing on youth smoking From an internal communications prevention? But the angst-ridden perspective, the role CR plays in the soul-searching battle was won business strategy is key to how deeply (in most cases). employees are going to absorb the message. Now we’re into tricky territory. If that was the public face of the Declaring “it’s part of our strategy”, organisation, what lies beneath? The means people will start looking for company will have stated somewhere connectivity – with the brand, product what is on its conscience and how development, training, customer prepared it is to do the right thing. communications, and HR policy… 06 DIRECTIONS 06
    • c Fabulous newsletters may pave the way to awards, but once the excitement, not to mention the post- event hangover, has faded, this starlet of internal communications won’t get the message under the skin of employees. c 2 (x=y-z) c For internal to be communications (as appropriate) and people (employees). Thirdly, don’t forget the brand in all this – employees after the CEO has briefed or at least communicated with all senior it is essentially the corporate personality managers in advance. believable, there has to be a so there has to be a rationale for how visible connection – even for people’s CR behaviours fit with it. Seeping through Infrastructure – a set of processes the cynics – between what’s And another thing – there must be an for communicating specific types of being said and “how we do agreed principle that silence, if there’s information using specific channels a crisis, is not an option. (face to face briefing, email, voice things around here”. d Rubbing in the message message, text, print, webcast, intranet) in a standard and consistent way. It is To be fair, it’s difficult. But that’s not Who and what carries the CR message? the only way to get deep down into a reason to head straight for the easy Managers and a robust communications an organisation. option of dropping a CR article into the infrastructure – the very same ones that company newsletter (we’ll return to this carry the business messages. Why? Because it consistently pumps point). For internal communications to through the organisation and restates, be believable, there has to be a visible Fabulous newsletters may pave the over and over again, the same strategy, connection – even for the cynics – way to awards, but once the excitement, the same connections… until consistency between what’s being said and “how not to mention the post-event hangover, instils common beliefs and ultimately… we do things around here”. has faded, this starlet of internal common behaviours. That’s why managers communications won’t get the message are excluded at the organisation’s peril. Frankly, it’s just not worth pursuing under the skin of employees. employees as ambassadors and agents of CR without absolute clarity about It wouldn’t be unreasonable to suggest c a fully functioning on Successful CR depends three things on where CR fits in the that the bulk of an employee’s source bigger picture. Firstly, what has it got of influence comes from the manager communications to do with the business we’re in, the whether we’re talking about acceptable products/services we provide and how does it stack up against our need behaviours or believable information. infrastructure. d to deliver profit to the shareholder? So how does an important email straight The number of employees, sites and Secondly, how do CR targets or measures from the CEO to all employees score on the overall structure of the organisation fit with the business’ key performance the believability/impact scale? Lower will inform how many channels or even indicators – financial, customer than the email that goes out to all function-specific infrastructures are used. DIRECTIONS 06 07
    • The key is it all has to connect, which is function, business segment, site. This How deep are businesses why often, it helps to have a centralised is essentially a logistics and e-based prepared to go? internal communications team if an exercise (no surprise there aren’t any Having alert employees is one thing. organisation is implementing a strategy awards for this line of work). Making every employee an ambassador that requires behavioural change. and agent of CR is another. It’s probably 3. Three agreements: fair to say that most companies are in So if successful CR depends on a fully • One with the CEO/business director the former category rather than the functioning infrastructure, it’s worth (the ultimate in charge): to support latter. However, the CR strategy sits with checking to see if the following three the infrastructure and not give any the company’s core business strategy and foundations are in place: senior managers permission to ‘opt employees have to see and understand out’ (potentially tricky issue). the clear links between the two. 1. Straight-talking performance • One with the Finance Director and updates: sponsor of transformation programmes: A final thought. It takes months of • Monthly and quarterly processes to to provide the performance data and constant attention and collaboration communicate clear tangible progress commentary on time. with senior managers for internal against objectives/targets. • One with the PR/Marketing/Marcomms communications to effectively carry • Details on where progress has not Director (the ultimate owners of all a business strategy through an been made and what’s being done external communications): to guarantee organisation. Adding the complexities about it. any material or comment going to the of CR to the mix makes it tougher, • Briefings face to face (or voice) using media and any customer or stakeholder but if the CR strategy is well thought a handy ‘pincer movement’ (i.e. tell communications is copied/briefed in to through, the infrastructure can bring all employees their manager has the internal communications before it to life. Without it, the face the information to brief them in the next it’s released. company projects will be no more 10 days). than a mask. 2.Cascade processes: • Detailed (specific names in boxes) processes for how time critical/non cone thing. Making is Having alert employees time critical announcements are every employee an briefed in to the organisation (e.g Stock Exchange announcements, ambassador and agent redundancies, product recall) – by of CR is another. d 08 DIRECTIONS 06
    • c It can take months of constant attention and A few live scenarios to consider: BP – probably the most impressive corporate citizen, provides a dramatic illustration. The company has made a huge collaboration with senior investment to address safety concerns and minimise managers for internal environmental impact, but as the partial closure of the Prudhoe communications to Bay field in Alaska has proved, being a responsible corporate citizen has not gone deep enough into the organisation. effectively carry a business strategy through an Richard Branson has recently announced a move into organisation. Adding the environmental businesses, known as the ‘Gaia Capitalism Project’, starting with a company called Cilion that will make complexities of CR to the environmentally friendly fuel. The question is, will he expect mix makes it tougher. c all employees in the Virgin empire to operate and think in a way that is aligned to this part of his business strategy – such as environmentally friendly office systems and practices? Or will environmental conscientiousness be kept within the confines of project businesses? Following its acquisition of Green & Black’s, is Cadbury Schweppes shifting its brand values to align with those of Green & Blacks and is anyone telling employees whether they are expected to behave differently as a result? To what degree will L’Oréal adopt The Body Shop’s product development principles or will this business and its beliefs be ring-fenced from the rest of the organisation? How will Body Shop people feel about that – especially if the reason they come to work is because they perceive their employer is aligned with their own ethical values? DIRECTIONS 06 09
    • Embedded Is corporate responsibility Tests Methodology in your blood? If it really is running through your organisation’s veins the symptoms should be recognisable! We decided to run a few tests on a selection of companies from the FTSE 100 to see how they are embedding CR. Our panel of judges picked out the most effective reporters in their sectors (see page 18) and we have used some of those as our test group. This isn’t, of course, the definitive guide to embedding CR but we hope it provides you with an interesting insight into progress. If you would like to talk to us about embedding CR please get in touch! So the white mice are: Aerospace & Defence – BAE Systems Healthcare Equipment & Services and Health, Pharmaceuticals & Biotech – Smith & Nephew Lucie Harrild Banks – HSBC Head of CR Communications Household Goods – Reckitt Benckiser Beverages – Diageo Media – ITV and BSkyB Chemicals – Johnson Matthey Mining – Rio Tinto and Anglo American Electricity – Scottish Power Non-life Insurance and Life Insurance – Fixed Line Telecommunications and Prudential Mobile Telecommunications – BT Lucie Harrild, salterbaxter Oil & Gas – Shell Food & Drug Retailers – Tesco lharrild@salterbaxter.com Real Estate – Land Securities Food Producers – Unilever Support Services – Wolseley Gas, Water & Multi-utilities – United Utilities Tobacco – British American Tobacco General Financial – Man Group Travel & Leisure – British Airways General Retailers – Marks & Spencer We tested the companies using the questions opposite, focusing on three areas where an organisation might try to embed CR: strategy and management, brand and product, and people. First of all we used publicly disclosed information to make assessments. Then we spoke with the relevant person responsible for CR. We wanted to see if CR was getting to the heart of the workforce, so decided to check with the switchboard to gauge whether they had heard of CR (or sustainable development). So to test the switchboard, we rang the switchboard! 10 DIRECTIONS 06
    • Testing for embedded Corporate Responsibility DIRECTIONS 06 11
    • Embedded Tests The results Key: = High Embeddedness = Medium Embeddedness = Low Embeddedness BAE Systems Test Results: Medium Strategy & Management: High BAE systems have implemented the strategic and management side of things. It is probably Brand & Product: Medium unsurprising that CR doesn’t feature in People: Medium marketing messages but it does in product development – and defence export legislation Overall: Medium requires it. Switchboard is run by an external company and they give a seminar to employees on CR. HSBC Test Results: Medium Strategy & Management: High HSBC’s strategy and management of CR is constantly improving and has gradually Brand & Product: Medium brought in more areas of the business and People: Medium its functions in order to embed CR. Training is increasing with programmes for new Overall: Medium employees, graduates and very senior management. But the switchboard didn’t understand us. Diageo Test Results: High Strategy & Management: High High scores for strategy and management as well as brand and product – not surprising Brand & Product: High given the focus on responsible drinking and People: Medium alcohol in society. There is broad representation of divisions, functions and geographical areas Overall: High of the business on its corporate citizenship committee. Unfortunately the switchboard wasn’t up to speed. Johnson Matthey Test Results: Medium Strategy & Management: High Johnson Matthey seem to be more successful with embedding CR in the senior parts of the Brand & Product: Medium company with considered CR management People: Low and senior staff trained in policy. However other employees are less aware. But there Overall: Medium are positive changes happening in the product development area. 12 DIRECTIONS 06
    • Scottish Power Test Results: High Strategy & Management: High Scottish Power’s activities in the renewables market give it a lead in the brand and product Brand & Product: High area with periodic marketing to support it. And People: Medium as you might expect it has strong CR strategy and management but the employee awareness Overall: High programmes aren’t sufficiently powerful. BT Test Results: Medium Strategy & Management: High Whilst BT run internal communications programmes for CR, the switchboard weren’t Brand & Product: Low connected. But the strategy side of things is People: Medium well integrated. An ad-hoc approach has been applied to products being developed with CR Overall: Medium issues in mind. But this might change soon. Tesco Test Results: High Strategy & Management: High Tesco have some impressive employee communications activities across the Brand & Product: High organisation, which have paid off – and the People: High switchboard knew exactly what we were talking about. Product developments and a Overall: High range of external and internal communications back up the CR strategy and management. Unilever Test Results: High Strategy & Management: High Unilever has committed to significant strategic leadership on CR. It is incorporated Brand & Product: High into product development and features in People: Medium advertising and marketing – “we don’t play with your food”. Internal communications Overall: High play their part too, but it hasn’t reached the switchboard yet. United Utilities Test Results: Medium Strategy & Management: High Strong strategy and management plus activities in renewable energy are positive Brand & Product: Medium for United Utilities. Advertising and sales People: Low messages are given a light touch in terms of CR as is employee communications and Overall: Medium it hasn’t reached the switchboard. Man Group Test Results: Medium Strategy & Management: High Man Group has put a lot of thought into the structure of managing CR and it will be Brand & Product: Medium interesting to see how that pays dividends People: Medium in the future. It can be a bit hard to grasp but there is focus on how CR is integrated in the Overall: Medium products. There is a wealth of information on the website and the intranet but switchboard are none the wiser. DIRECTIONS 06 13
    • Embedded Tests The results Key: = High Embeddedness = Medium Embeddedness = Low Embeddedness Marks & Spencer Test Results: High Strategy & Management: High As we’ve heard earlier in this report, M&S are working hard and creatively to embed CR and Brand & Product: High convey it via the M&S brand. It is paying off. People: Medium But interestingly the switchboard weren’t well versed which unfortunately makes you wonder Overall: High if shop floor can do justice to all that hard work. Maybe that’s the next area that needs focus. Smith & Nephew Test Results: Medium Strategy & Management: Medium Smith & Nephew have a bit of a sector advantage – they have to factor in CR when Brand & Product: High designing products to provide economic People: Low and practical benefit to the healthcare professionals. Plus marketing is heavily Overall: Medium regulated. But it is missing a trick when it comes to communicating with employees. Reckitt Benckiser Test Results: High Strategy & Management: Medium Reckitt Benckiser may score a medium for strategy and management via this methodology Brand & Product: High but believes its hands-on approach works better People: High in its flat structure. It is working for internal communications, the switchboard talked about Overall: High the CR training they receive. ITV Test Results: Medium Strategy & Management: High ITV uses its intranet, the Watercooler, to give regular updates to employees on what Brand & Product: Medium is happening around the CR activities, and People: Medium it gets plenty of attention. Viewers are surveyed on CR issues, aligning the brand Overall: Medium with the relevant issues. It seems integration is developing, if not fully embedded. 14 DIRECTIONS 06
    • BSkyB Test Results: High Strategy & Management: High BSkyB is using its significant customer reach to roll out CR-relevant messages such as energy Brand & Product: High efficiency and climate change. The CR strategy People: Medium and management provide the company’s CR framework and a taskforce of CR champions Overall: High help to embed it through the business. As with most companies we tested, switchboard drew a blank. Rio Tinto Test Results: Medium Strategy & Management: High Rio Tinto is creating strong management structures and the stewardship programmes Brand & Product: Medium mean CR is well integrated in the product area. People: Low However internal communication stays within the upper layers of the management structure Overall: Medium so there is little embeddedness there. Anglo American Test Results: Medium Strategy & Management: High Anglo American has integrated CR through its management structures and into all the stages Brand & Product: Medium of its projects from feasibility to responsible People: Medium closure. It doesn’t really do advertising but internal communications use various means Overall: Medium to tunnel CR into the organisation, though it seems to have bypassed switchboard. Prudential Test Results: Medium Strategy & Management: High Effective CR strategy and management mean Prudential leads from the front and it makes Brand & Product: Medium every effort to communicate financial products People: Medium clearly to its customers, educating them on financial planning. Some employees are given Overall: Medium CR training but it isn’t everywhere. Shell Test Results: Medium Strategy & Management: High Shell, as you would imagine, has all the management structures in place. And a Brand & Product: Medium significant amount of its product development People: Medium takes sustainable development into account. Whilst there are some very positive employee Overall: Medium training and communications programmes, they exist in isolation. Land Securities Test Results: High Strategy & Management: High Land Securities has developed its CR with a focused approach to its strategy and Brand & Product: High management, positive communications People: Medium programmes and green building techniques. Unfortunately the switchboard didn’t pick Overall: High up those messages. DIRECTIONS 06 15
    • Embedded Tests The results Key: = High Embeddedness = Medium Embeddedness = Low Embeddedness Wolseley Test Results: High Strategy & Management: Medium Judging by the scores it’s a hands-on approach that’s having an effect. Wolseley have interesting Brand & Product: High programmes such as the Sustainable Building People: High Centre, a showcase for renewable building materials, and promote energy saving and Overall: High sustainable timber products. Switchboard weren’t sure of the terminology but once it was explained were quite knowledgeable about office-based activities. British American Tobacco Test Results: Medium Strategy & Management: High CR and tobacco have always been controversial bedfellows and BAT is clearly thinking hard Brand & Product: Low about how to embed CR in its strategy and People: Medium management. But the product is the product and BAT does not see the corporate brand as a Overall: Medium vehicle to carry CR messages. Employees are surveyed on CR but that hasn’t reached them all. British Airways Test Results: Low Strategy & Management: High There are the management structures in place to embed CR at BA but it seems they Brand & Product: Low haven’t fed throughout the organisation as People: Low yet. CR is rightly represented by activities on the environment, health and safety and the Overall: Low community, and employees are told about these, but that won’t equip them to champion CR as a business strategy. 16 DIRECTIONS 06
    • Embedded Overall the companies we tested faired quite Tests well. Though they use a range of approaches and CR programmes to do it, they all recognised The winners that CR must be embedded to be effective. Interestingly of the 23 companies we tested, only three switchboards were familiar with corporate responsibility. Of the companies achieving high scores, we felt these five stood BSkyB out (in alphabetical order): Using its huge customer network to communicate CR Diageo Includes all geographic areas and business functions in CR thinking Marks & Spencer Making CR a definite brand value Tesco Extensive employee engagement activities Unilever A good all rounder and willing to advertise DIRECTIONS 06 17
    • Top FTSE 100 The panel is back companies by sector Methodology Last year Directions moved on from just recording the reporting activities of major companies and a judging panel gave their opinions on how effectively the FTSE 100 report on corporate responsibility. With 49 of the FTSE 100 producing detailed reports there is now no denying that corporate responsibility reporting is here to stay. Now it is a question of how effective those reports are. The one-size-fits-all approach of one huge report looks like it might have had its day as 59 of this group use various combinations of web based and printed information to communicate values and activities. These refinements need to continue and progress for organisations to reach a point where they are really communicating effectively. So here we have a new set of willing volunteers to give their views on who is up to what this year. As before we set some loose ground rules but gave the individuals a pretty free rein to let us know what they think does and doesn’t work. Rules 1. The assessments should be based on information on company websites or in public reports available up to and including 18 August 2006. 2. The panellists are encouraged to be forthright 3. The panellist’s decision is final (but please feel free to get in touch with us if you’d like to discuss it) 4. The panel aren’t actually doctors! Please note the panellists’ views are their own personal views and not necessarily those of their organisations or of salterbaxter FTSE 100 list taken from the Financial Times, 31 March 2006 18 DIRECTIONS 06
    • My-L iden inh is ta t and ifying su sked wit and opportun stainabil h Sust sectors in ities of ity/CR ris The judging Inve ainable a which companie ks s H inves tment ( nd Resp enderso s S activ t. My-Lin RI) fund onsible n’s panel initia ely in volv h ha sb CR p tives to ed in a een s ma y and ractices encoura number healt a g o hcar mong th e better f My- e ind e ustrie media Senio Linh s Glob r SRI A Ngo al In n vest alyst, H ors ende rson Lucie Em h corpo as a backg co ily ra comm te and conround in co rpor is th unicati s ns at e f consu ons, S umer ha u e o lt in Env ancy. She RI and CR in s el ltanc resp und ironm holds CR the even y CR onsi er of from Im ental T an MS str field yea Fu bilit the respon perial Coll echnology c ate a rs tur y gy nd ex es. respon sible for co ege and is an spe per She work a sibility com rporate d r cia ien ep lis ce t salte m rbaxte unications ort es r Lucie ing in Harril Head of d salterb CR commu axter nicati ons, Em Dir ily ec torO CR sb , Fu a tur nd al es on ati ith ern ks w ate on int or r dd r in w rpo e ne He co dg HaM art RM. chip ing e d tt R P E e sa y u tt i anc f bl p c ng utt an d wa n s Martner, E Ma nsult er o evelo porti es, a Pa UK’s co umb to d al re amm r of cil f KPMG onsibility a n ents anci rogr mbe oun ent Head o sp cli n-fin nce p me ess C lopm and Mike is te Social Re he leads re Corpora nction, whe managing no sura team usin Deve ility s as ore rld B ble ntab roup (CSR) fu programme erformance. a c e Wo taina ccou ing g KPMG’s ’s own CSR p the UK’s elly th Sus D) A ork rm the fi nally he lea ds loping a CSR Mike K R, KPMG for BCS ing w Additio ution in deve across CS Head o f (W port G contrib me for KPM nd Africa – Re m a progra , Middle East tion of Europe y a collabora ctices Kirsty is an Associate Director at ntl curre 5 member pra F&C Asset Management, one of some 2 London’s largest institutional investors with £107 billion under management. She works in the GSRI team where she covers the banking sector and leads the shareholder engagement Kirsty Jenkinson programme on Human Rights. Associate Director, Prior to joining F&C in 2001, Kirsty Governance and Socially spent six years in London and Responsible Investment (GSRI), New York with Goldman Sachs F&C Asset Management nd in grou y and Nick back c He manacoordina has a onsultan igence. he t funct gement es the fu Mike egic c e dil ht rat rcial du years wit first ce Peir nd Head a billio ions for H nd resea nd st me e at com spent fiv tAbility, ment of Mike Directort,aCambridge n ran r He h a ge o enderso ch also , Accoun develop bility the in s a particf SRI fun n’s £1 a ty n y of cli vestmen ular foc ds. NGO ging the account nd later Depu elopme Industr ev r a Hend mate cha t implicat s on u man rporate A1000, aficer of D amme fo its co work, A ting Of Progr 2000 erson in nge and ions e ra expe with ove Dece joine fram ief Ope mbe d h r susta ience wit r a decadr as C inabil ity/C h the e’s Nick R ag Robi enda Head ns Glob of SRI Fu al Inv n estor ds, Hend s erso n companies Jenny works with keholders’ to research their sta ations, opinions and expect iety of working across a var ible industry sectors ons resp er is orate ient UK. er Jenny Dawkins ith Luk corp pat in the g d Jud Pfizer’sility an tegies e-rang in Luk er Head of Corporate for onsib n stra a wid nt dithtakehorld K Ju d of S fize U Responsibility Res earch, resp rmatio inates ageme ees a h Hea tegy, P Ipsos MORI. info coord er eng overs in whic Str a She ehold e and cture are stak grammce stru tions a pro ernan menda rd on gov recom he Boa CR e to t basis mad rterly qua DIRECTIONS 06 19
    • The sectors Sectors Page Sectors Page Aerospace & Defence 20 Healthcare Equipment & Services and Banks 21 Health, Pharmaceuticals & Biotech 27 Beverages 21 Household Goods 27 Chemicals 22 Industrial Metals 28 Construction 22 Media 28 Electricity 23 Mining 29 Fixed Line Telecommunications and Non-life Insurance and Life Insurance 29 Mobile Telecommunications 23 Oil & Gas 30 Food & Drug Retailers 24 Real Estate 30 Food Producers 24 Software & Computer Services 31 Gas, Water & Multi-utilities 25 Support Services 31 General Financial 25 Tobacco 32 General Industries 26 Travel & Leisure 32 General Retailers 26 BAE Systems is the only company in this corruption within BAE and media reports Aerospace & sector that publishes a full CR Report. relating to bribery. However, this makes for Defence: Smiths Group and Rolls-Royce focus primarily on environment, health & safety and therefore slightly uncomfortable reading when they raise more questions than they answer. fail to address many of the key issues for this BAE Systems sector such as business ethics, human rights All three companies report comprehensively ARolls-Royce and lobbying. on environment, health and safety – showing Smiths Group clear performance trends. The quantitative V As in previous years, BAE has continued targets published by Smiths Group and to make stakeholder feedback central to its Rolls-Royce demonstrate a mature approach Panellist: report. There are detailed comments from to reporting in this area. Emily Osband external experts in four key areas – ethics, employees, lobbying and education – followed by the company’s response. This format obviously works best when the external reviewer provides challenging and insightful commentary. The section on lobbying makes for a good read with Robert Barrington, Director of Governance and Socially Responsible Investment F&C Asset Management, highlighting strengths and weaknesses of the company’s § And the winner is: approach. The Q&As get top marks for honesty – drawing attention to a government inquiry BAE Systems into allegations of false accounting and 20 DIRECTIONS 06
    • Banks, perhaps more than any other sector, Bingley and Northern Rock to, say, Barclays Banks: can feel that they are caught between a or Standard Chartered, is not particularly rock and a hard place on CSR reporting. constructive. Alliance & Leicester While strict compliance requirements and Barclays client confidentiality restrict information Consequently, I think it’s helpful to consider Bradford & Bingley flows, increasing public scrutiny of a sector the sector in a few sub-groups. Alliance & HBOS representing 20% of the FTSE 100, and Leicester gets my vote among the ‘UK-focused’ wielding undisputed influence over the global institutions for an easy-to-read yet detailed HSBC economy, means that the days of relative report that goes beyond a review of its Lloyds TSB secrecy are well and truly over. philanthropic activities and tackles CSR in its Northern Rock ‘Marketplace’. Standard Chartered and Lloyds Royal Bank of Scotland Thankfully, banks are rising to the challenge TSB also deserve a mention for pioneering Standard Chartered with many now finding a balance in CSR concise and punchy Corporate Responsibility reporting that both informs stakeholders and ‘Reviews’ which are heavy on numbers, targets protects commercial activity. This involves and results. However on balance, HSBC comes Panellist: reporting on the indirect impacts of their out as overall winner for a report that sets its Kirsty Jenkinson lending and other commercial activities as approach to Sustainable Development firmly well as their direct impacts. While there is within the Group’s overall strategic goals. more to be done, most banks now make clear It grapples with the wide range of issues – differentiations between, for example, the from corporate governance, sustainability environmental performance of their branch risk, Equator Principles implementation and networks and how they assess environmental treating customers fairly, to diversity, HIV/AIDS issues when writing business. and carbon neutrality – facing a bank of its size and international reach today. All this being said, the actual content of CSR reports still varies considerably from bank to bank, as does progress in identifying and managing sustainability related risks and opportunities. To a large extent this reflects both the different range of products and § And the winner is: services that the banks offer, and the geographic reach of their business. For this HSBC reason, comparing companies like Bradford & V All three companies prepare a CR report Firstly their report provides outcome and Beverages: and all commission an external assurance performance evidence, such as the number of programme. Whilst some CR issues are complaints made to the Advertising Standards Diageo common to all three companies in the sector, Authority and the proportion of advertising SAB Miller others such as water shortages and HIV/AIDS spend focused on responsibility messages. Scottish & Newcastle tend to be more specific. This is generally This effectively moves the report on – from reflected in the CR reports. SABMiller one based on commitments and initiatives, addresses a number of CR issues, giving to one which more clearly demonstrates the equal space and emphasis to each one, whilst business benefit of good CR performance. Panellist: Diageo and Scottish & Newcastle focus on Matt Haddon responsible drinking as their key issue. Secondly the Diageo report is broader, covering a wider range of issues such as the Responsible drinking, as in 2005, is the company’s economic impact, employees and dominant issue for the sector in 2006. All governance practices. It is a more complete three companies recognise the issue and non-financial performance report. the importance of their role in promoting responsible behaviour. They also detail management processes and initiatives they have put in place, examples of memberships, research, policy commitments and best practices. § And the winner is: Diageo though, goes a notable step further Diageo than the others, and is awarded first prize. DIRECTIONS 06 21
    • All of these companies see CSR, and ICI is straightforward, provides clear Chemicals: particularly the environmental component of performance data and again is of an easy CSR, as an opportunity rather than a cost and to read length and a somewhat easier to BOC talk about future income streams from that digest format. ICI source. Additionally occupational health and Johnson Matthey safety features very strongly both in terms of Johnson Matthey also has clear data, easily the targets set and also in the narratives from understood, and even confirms support to the CEOs and Chairmen. This is quite right ILO conventions and the Universal Declaration given the hazardous products and processes of Human Rights. Panellist: with which they are all involved and the Mike Kelly ambitions set, such as a target of zero But the winner is Johnson Matthey, because reportable accidents introduced by Johnson they also talk about difficult issues such as Matthey or BOC’s simple zero incidents and animal testing. injuries is admirable. Now what do they all think about REACH? The length of the BOC report is great and (the EU regulatory framework for the proves you don’t have to destroy a couple Registration, Evaluation and Authorisation of forests every 12 months to produce an of Chemicals) effective document. Although it covers all the main areas, the report is in danger of under- selling what they are doing, even though it gives a nod to GRI, the ABI, the UK’s Combined Code and the provisions of the US Sarbanes Oxley as well as the UN Global Compact. It would be good to see future reports building § And the winner is: on the use of diagrams to communicate targets and data, enabling the reader to easily gauge Johnson Matthey performance improvements. Hanson reports online, and is strongest in (looking to improve the ecological footprint of Construction: the area of health and safety, where it gives buildings and the living standards they enable) trends on performance data showing sustained and contributing to sustainable communities Hanson improvements. It would be strengthened by is particularly impressive. Wates also deserves disclosing the targets set for future years. special mention for its initiative to employ The rest of the information is largely policy people aged 35 plus who are long-term Panellist: statements, although it does make the unemployed, ex-offenders and parents link between its training initiatives and the returning to work. The inclusion of strategic Jenny Dawkins business strategy, references to senior priorities, performance targets, stakeholder management involvement and gives a few dialogue and accreditation schemes such as interesting case studies. Investors in People and ISO 14001 are also common strengths in these reports which There are a few role models for more Hanson could emulate. comprehensive reporting among the construction companies outside the FTSE 100. Companies like Lafarge, Barratt and Wates produce standalone sustainability reports, and tackle their core business impacts in areas such as waste minimisation, using local suppliers and local employees to contribute to local economic § And the winner is: development, and responsible purchasing e.g. sustainable timber sourcing. The coverage of Hanson the overarching aim of sustainable construction A V 22 DIRECTIONS 06
    • Overall, reporting in this sector could be more somehow to make a connection with Electricity: imaginative when it comes to the design and the reader. The stakeholder engagement layout of reports. Future targets are not always information is chiefly focused on government British Energy Group reported and apart from Scottish Power, and the investment community. Drax Group reporting on stakeholder engagement is limited. International Power International Power contains a lot of repetition Scottish and Southern Energy Scottish Power’s Issue Briefings are in direct from the previous report. It highlights a few Scottish Power response to stakeholder feedback; these and philanthropic endeavours but there is no the individual performance summaries make hook into the core business. The stakeholder it easy to navigate through key issues. engagement programme seems this time to The concise Summary Report provides a be limited to employee consultation. Panellist: good punchy overview, while those wanting Judith Luker more detail can turn to the full Community Drax Group’s report is the weakest in this and Environment reports, which slightly category, with a narrow focus on environment confusingly also contain summary sections. and H&S and limited accountability. It is, however, nice and short! A Scottish and Southern Energy’s report is diligent, if somewhat dense. It raises some V important issues, including appropriate sales and marketing techniques and the sector’s role in reducing total energy demand. Extra marks also for linking corporate responsibility objectives to directors’ remuneration. § And the winner is: British Energy Group responds to feedback from the previous report, and the document Scottish Power is neat and concise. However, I felt it failed Perhaps more than any other major sector in Vodafone has also continued the steady Fixed Line the FTSE, telecoms continue to be buffeted by evolution of its CR strategy and reporting, Telecommunications the strong winds of technological change and regulatory intervention. 02 is now part of the with particularly good sections on the positive contribution that mobile can make for emerging and Mobile Spanish Telefonica group – although, for now, it markets, and on how the group is managing has maintained a high standard of separate CR the growth of potentially anti-social content Telecommunications: reporting. In addition, Cable and Wireless has (such as adult content and gambling) on its fallen out of this year’s review; let’s hope that networks. Its “We said… we have… we will” BT the corporate turnaround currently underway mantra also provides a strong spine around will also extend to its CR programme. which to present performance on its priority Vodafone indicators. That leaves the two telecoms behemoths, BT and Vodafone, whose disclosure this year One area where CR disclosure could improve Panellist: highlights two of the wider themes impinging is in the area of business ethics and marketplace Nick Robins on the responsibility agenda: first, how to conduct. Telecoms is an extremely concentrated manage the dance between the standalone market, bringing intense regulatory oversight, report and an in-depth website, and second, with the potential for new interventions (such how to connect transparency on CR with as from the EU over roaming charges) as disclosure through the annual report. well as investigations into anti-competitive behaviour. BT does have a short section on BT has made a refreshing contribution this year “competing fairly” which is welcomed, and with its Changing World: Sustaining Values it would be great to see greater attention V report, which effectively conveys the company’s to this from Vodafone next year. strategic CR priorities and performance in a mere 18 pages – providing a snapshot of how it All in all, a good crop. is anticipating future trends. This is backed by a comprehensive website that enables analysts to drill down to the detail. What is equally impressive is how issues of reputation, § And the winner is: employee motivation and social responsibility are dealt with in the main body of the BT shareholder-directed annual report. DIRECTIONS 06 23
    • Including some of the major supermarkets, this Tesco edges ahead on its coverage of Food & Drug sector is nothing if not high profile. Health and stakeholder engagement, outlining the Retailers: wellbeing has been a firm focus in recent years, responding to popular preoccupation with the processes used and actually summarising the key opinions of each group – how rare! It is ‘o’ word (obesity). The sector also has some also a bit more readable, and more open Morrison Supermarkets other meaty issues to address including its about the challenges it faces, including these J Sainsbury supply chain, food miles, consumer information in the introduction alongside its highlights. Tesco and its impact on local communities. The sector as a whole could include more discussion of challenges – all are guilty to Sainsbury’s and Tesco are the clear leaders some extent of skirting over the difficult issues Panellist: in this sector. While Morrisons has developed rather than giving open explanations of why its reporting since last year and included some performance is below par and what they are Jenny Dawkins doing to address the situation. useful measures in some areas, it is still way behind the impressive and comprehensive reporting of its rivals. There is little to choose between Sainsbury’s and Tesco – both reports are well focused on the key impacts of the core business, and both include independent comments, impressive measurement and targets (especially on environmental issues), with some great case studies thrown in. Sainsbury’s gives good explanation of the § And the winner is: reasons behind the trends in many places and the summaries of its performance against Tesco quantified targets are particularly impressive. Alliance Unichem and Boots Group merged during our research period. Alliance Unichem has not been judged here but Boots Group appears in the General Retailers sector Unilever’s is the only report to use the addressing the different information needs Food Producers: internet effectively – the website provides of stakeholders but it doesn’t achieve its updated and more detailed information, with objective of avoiding information overload Associated British Foods quick links for different stakeholders. The and doesn’t work as well as online/offline Cadbury Schweppes balance of offline/online content is good cross-referencing. Unilever and makes the report far easier to navigate. There are numerous examples of programmes The Associated British Foods report is by where corporate responsibility is really being far the weakest in this category, with an practised on the ground, making this the best over-reliance on governance and policies and Panellist: example of a report where the organisation little evidence of real-life outcomes – which Judith Luker is characterised by corporate responsibility. gives it a feeling of remoteness. It’s a refreshing change from the usual self-referencing narrative about governance procedures and filing-cabinet policies. Cadbury Schweppes reports biennially, which is sensible and reduces the risk of reporting cycles becoming the focus rather than the by- product of corporate responsibility activity. However, its content is undermined by an excessive use of illustration which somewhat § And the winner is: trivialises the issues under discussion, and by its length. Its “two-speed approach”, through Unilever data-rich inserts, is an innovative approach to 24 DIRECTIONS 06
    • All the companies in this section are old hands • Two issues, human rights and climate change, Gas, Water & at reporting and can display a string of awards feature in all reports and are addressed in a Multi-utilities: for differing aspects of reporting over the years. They have been through the range of way that makes you think the companies are serious at embedding this into the business reporting styles from the 10 page review which Centrica is all story-based, to the site specific data- Overall they are all mature in their reporting National Grid heavy tomes in accordance with a complete and United Utilities appeals to me most as a Severn Trent range of reporting standards and guidelines. very clear read and an account of highlights United Utilities So taking a step back from the detail of the and lowlights. reports to consider how these corporates are changing led me to think of the following common points: Panellist: Mike Kelly • The majority are using the internet in a smarter fashion – not just the odd pdf but a range of reporting mechanisms to really appeal to ‘an audience of one’, NGT are very good at this • There is a forward looking focus – how will § And the winner is: we make the business more durable in the future – Severn Trent’s discussion on United Utilities Adaptation is good The General Financial sector is a bit thin on committee it is transparent and accountable, General Financial: the ground for CR. each executive’s role and understanding is demonstrated in each person’s own voice. 3i AMVESCAP is immediately knocked out of this There is also a level of self-awareness with the Amvescap race as it doesn’t produce a report – there is admission that they operate in a “controversial Man Group some explanation of its policies on the website. niche of the financial services sector”. And as Schroders the report moves on to early disclosures of So, to continue in reverse order: Schroders. data and objectives it proves that there is A very brief document which unfortunately action behind the words. It will be interesting reads like a policy document and is a half to see updates on the commitment to include Panellist: employees’ families in the carbon neutral plan. hearted attempt. 3i, the private equity and Lucie Harrild venture capital house is a slightly less boring read as it seems to have thought a bit about what CR means to 3i and recognises the fact that its biggest impact is its investments. There is a rather vague assertion that some investments are turned down for environmental and social reasons, but it sounds like they know that more by chance than judgement. And that just leaves us with Man Group which is much more encouraging. Though a first report, it clearly sets out the who, what, why, when and how of Man Group’s approach and leaves the § And the winner is: reader in no doubt that it is being led from the top, with commitment and understanding. Man Group By having contributions from the CR DIRECTIONS 06 25
    • The scope of REXAM’s reporting is good – ‘Environmental and social update’ is from General it covers most of the key issues you would 2004. You have to ask, if the company is Industries: want from a manufacturer of consumer packaging such as promoting eco-efficiency making the progress that the annual report claims (the 2005 review “resulting in a more in the design process, minimising waste, extensive CR programme”) why doesn’t the REXAM promoting health and safety, employee website reflect this, or at least say when new training and supply chain management. information will be available? One issue that is not really covered is the Panellist: implication of the company’s presence in Jenny Dawkins developing countries, in terms of working conditions, human rights, security and local community development. The annual report includes snapshots of performance measurement, trends and benchmarking against the industry standard § And the winner is: in key areas. The problem is that the more detailed reporting on the website is out of date REXAM and the standalone (and ironically named) Last year saw Boots produce its first CSR adopted for the report and, reasonably General Retailers: report – a publication relatively short on data enough, the greatest attention is paid to but accompanied by plenty of targets. How supply chain issues. Boots Group this summer’s union with Alliance UniChem DSG International will affect the chemist’s reporting is yet to The two stand-out reports in this sector GUS be seen, though the new company insists come from Kingfisher and Marks & Spencer. Kingfisher that its commitment to responsible business Kingfisher’s strength is its emphasis on remains firm. process, particularly the elaboration of its Marks & Spencer management tool – Steps to Responsible Next From merger to demerger. As GUS plans its Growth. The evidence highlights the leadership split into Argos and Experian, the retail and role of B&Q in the group, though more could business services group has produced what be said about how the company is building Panellist: may be its last ever corporate responsibility the team that will spread these achievements Mike Peirce report. Few are likely to mourn the demise across the group. of this review – though there are many worse CSR documents in print – which is Marks & Spencer tells us more about progress supplemented by separate reports on specific than systems. Its CSR report highlights almost policies such as conflict diamonds and socially twenty key issues within the categories of acceptable products. people, products and places. For each issue, we learn about the key events of the last year, DSG’s website is prettier and packed with what the company has achieved and what it examples of action, but it’s hard to find many intends to achieve next year. M&S does give targets except in the arena of environmental a glimpse of the internal initiatives which it performance. Whilst we learn about a range is using to develop its people and company of employee engagement initiatives, there is culture, though more might be said on its little discussion of how staff, including senior training for senior executives. leaders, are being developed to address the challenges identified by the company. Next’s second-ever CSR report, covering the § And the winner is: period to January 2005, recounts some basic information on the company’s governance Marks & Spencer structure. A simple stakeholder approach is 26 DIRECTIONS 06
    • Pharma has continued to dominate the is an issue for other sectors as well, but Health, headlines, with coverage continuing about surely it is critical for such a regulated Pharmaceuticals product safety (GSK’s asthma drug had its safety warning tightened whilst Astra had health industry? & Biotech and to abandon two promising drugs), sales & Future wish list? marketing practices (Abbot’s membership of • Better performance reporting please: Healthcare the UK trade association was suspended for not just policy and process KPIs, but actual unethical marketing practices), as well as Equipment & about clinical trials (the disastrous Northwick performance ones which enable the reader to judge the effectiveness of a company’s Services: Park trials which left all the volunteers in hospital) to name but a few. The medical CR practices • Thankfully, the access to medicines debate is equipment industry has also started to gain broadening, with companies’ approaches to AstraZeneca some press on similar issues (Smith & Nephew middle income countries such as India, and GlaxoSmithKline has received an anti-trust subpoena from the within industrialised countries (e.g. cancer Shire Pharmaceuticals US Dept of Justice). drug Herceptin in the UK) starting to gain Smith & Nephew attention. More transparent about the global What’s improving? strategy please • All the companies continue to make steady • Proactive genuine dialogue with stakeholders Panellist: progress with regards to the level of public about the numerous ethical challenges/ V reporting, as well as the breadth dilemmas in their business e.g. getting the My-Linh Ngo • Shire deserves recognition for expanding its balance between risk vs benefits of taking issues reporting drugs, addressing the contentious disease • Congratulations to GSK and Astra for focuses (e.g. ADHD, anti-depression drugs), starting to report on marketplace compliance emerging technologies etc. performance Smith and Nephew is the winner overall for its What’s still work in progress? solid track record in reporting. • Disappointingly Smith & Nephew does not report on product safety and marketing practices to the detail the others do • A small, but possibly important point relates to the lack of reference to legal proceedings § And the winner is: on matters related to CR (you have to go to the Annual Reports to find these). Is it me, Smith & Nephew or does this not seem strange? Clearly this The Household Goods sector consists of Reckitt So Reckitt Benckiser takes the number Household Goods: Benckiser, the cleaning and hygiene products one slot, if slightly by default. It is a report manufacturer and Persimmon, a housebuilder – that ticks the boxes in terms of relevant Persimmon very different companies with very different headings: Primary Purpose, Tackling Climate Reckitt Benckiser corporate responsibility concerns which initially Change, Sustainability, Responsibility, Further makes you doubt the ability to compare them Information. But somehow it feels that it has and make a judgement. been written with a CR ‘dictionary’ beside the author and rather than thinking about CR Panellist: and what it means to Reckitt Benckiser, some However Persimmon’s report is rather Lucie Harrild worthwhile projects have had the CR lexicon perfunctory. Whilst the company lays out an admirable no-nonsense approach to CR hurled at them so that they qualify for the and continues that view through the use of Sustainability Report. It’s a start but a good straightforward language, the result is dry example of a company on its CR journey, so and it is quite an effort to keep your attention hopefully the future will hold something a bit from wandering. This is a shame as there more insightful. are some good examples of going beyond the CR ‘housekeeping’ of H&S and recycling into innovative building projects using modern materials to maximise environmental savings. Now that Persimmon have acquired Westbury, making it the nation’s largest housebuilder, it should really look to go beyond just getting § And the winner is: the information out there and think about how best to communicate with different Reckitt Benckiser stakeholders and audiences. DIRECTIONS 06 27
    • The Corus report has broad coverage, be quantified or perhaps be more challenging. Industrial Metals: quantified trend data which is well explained, Evidence of external stakeholder engagement targets, benchmarks, and some interesting would strengthen the report, and some Corus Group case studies. It is well-written with useful areas could perhaps be covered more performance summaries and shows evidence comprehensively, such as workforce diversity, of sector leadership and collaboration in the company’s response to skills shortages Panellist: some areas, such as reducing CO2 emissions. and its management of its supply chain. Corus goes further than many global metals Jenny Dawkins companies in discussing the core impacts of its business, and illustrates the ‘sustainable solutions’ in the form of product innovations that it is pursuing in each of its main business areas. Among the major metals companies around the world, Alcan was the only one I came across who did this better – theming its innovations as responses to industry shifts thereby linking it more closely with the business strategy and wider sustainability issues. Corus recognises that it needs to extend its § And the winner is: performance data and targets to the areas of community and employee impacts, and there Corus Group are some places where other targets could We are seeing real improvements in CR • Reporting on community activities still Media: activities and reporting within the media doesn’t quite hit the mark for me – still too industry, and our UK companies are still much based in philanthropy, and not enough BSkyB leading the pack. on how such activities add value to the core ITV business itself Pearson What’s improving? Reed Elsevier • Refreshingly, competition has opened up on Future wish list? Reuters CR reporting – with the gap narrowing in terms • For media companies, managing people of what is reported, the quality, and creative is critical, and companies agree, regularly WPP approaches taken to make it accessible, stating that “employees are our greatest Yell interesting yet still address the key issues asset”. But reporting has yet to really • A positive by-product of the work of the UK demonstrate the added value gained by Media CSR Forum has been the development the business from investment in staff Panellist: of a common framework for managing • More upfront, genuine dialogue with My-Linh Ngo and reporting CR by media companies, stakeholders about the ethical challenges so facilitating benchmarking and dilemmas in their business e.g. role of • Both Reuters and ITV have revamped their the media in shaping/reflecting societal websites to better report on their CR activities values, corporate governance, • Interesting to see that BSkyB has introduced advertising/marketing ethics, off-shoring of the approach of giving donations to charities jobs, and so on. They may do well to learn in return for comments on its reporting, as a from the recent efforts of AOL in exploring means of encouraging feedback – will be internet ethics with its customers interesting if this works Winner: two if I may – the broadcasters – ITV What’s still work in progress? and BSkyB, both of which have come a long • It is good to see Reed Elsevier start to way in reporting terms. address the issue of its association with the defence sector (via involvement in organising trade exhibitions in this industry), although more debate is needed on this in future • WPP also shows it’s not afraid to confront issues about standards, marketing ethics and § And the winner is: obesity, but doesn’t address the issue of clients in sensitive business activities, ITV and BSkyB or its role in drugs promotion 28 DIRECTIONS 06
    • Strong commodity prices and the associated a sector-wide response to the challenges of Mining: rise in market values and new listings have led sustainability – the International Council on to a rise from five miners in the FTSE 100 last Mining and Metals’ Sustainable Development Anglo American year, to eight in 2006. The result is a much Framework providing a well researched and Antofagasta bigger gap between the CSR leaders and those widely consulted standard to which many BHP Billiton following behind. miners have signed up. Kazakhyms Lonmin Nevertheless, compared to other sectors More specifically, the Anglo report is well the general standard remains high. With structured and flows naturally through the key Rio Tinto the exception of recently listed Kazakhyms, issues presented, making it one of the easiest Vedanta Resources all companies in the group prepare a CR/ reports to read. The BHP report is detailed Xstrata sustainability report, and almost all obtain and comprehensive, though its length contrasts third party assurance. Kazakhyms stands out with the focused nature of the Rio report which V as far behind the crowd. stands out for its ability to get to the point. The Panellist: very high standard of reporting in this sector Matt Haddon Anglo American, Rio Tinto, Xstrata and BHP makes selecting one winner difficult – Rio Tinto Billiton continue to set the standard, not only and Anglo American share first prize. within the sector, but more broadly. They each produced comprehensive reports highlighting the key CR issues, their business performance implications, their boundaries of reporting and how these relate to financial reporting and their broader economic impacts. There is also an increased emphasis on performance, as well as the usual commitments and process. § And the winner is: The sector continues to stand out, and its progress in reporting in recent years is Anglo American and Rio Tinto impressive. This may in part be explained by As a whole, the CSR reports and websites Friends Provident bows to the trend for Non-life Insurance from life and non-life insurance companies identifying and outlining its material issues. and Life Insurance: stand up well to a comparison with their peers. The communications provide a business case Like its peers, it describes a mix of advanced and graduate leadership programmes; but yet for environmental efficiency and community again, the link to corporate responsibility is Aviva action, strategies and targets are outlined, and not explored. Friends Provident a wide mix of internal and external assurance Legal & General approaches and standards are adopted. Old Mutual’s approach to people management Old Mutual is framed by the company’s objectives for black Prudential But the reports produced by these companies economic empowerment. The latest available Royal & Sun Alliance also typify the limitations of so many CSR report (published in early 2005) helpfully publications. Readers learn about corporate acknowledges its poor performance in a Best objectives but gather little about the people Company to Work For survey, as well as the that will deliver them. Precious few words, for unearthing of major staff dissatisfaction Panellist: example, are devoted to how the companies through a series of internal reviews. Facing this Mike Peirce are identifying the critical skills, experience challenge, the latest available report for the and attitudes that will enable them to achieve company outlines a human capital model for their objectives, let alone the learning processes developing the full potential of its people. that will embed these competencies in the Readers await the successor to this report to organisation. Reports touch on workplace issues, identify progress. but the connection is rarely made with how employees can contribute to the achievement Prudential, at last, provides a link between of the organisation’s CSR objectives. workplace issues and CSR strategy. Detail is limited, but we do learn of the piloting Aviva, for example, identifies three key CSR of an e-learning tutorial; not only this, the issues: climate change, customer focus and company plans to launch the tool with a managing structural change. The report senior management population. It may just provides detailed information on training, be a few words, but hopefully this provides which includes a leadership academy, but the a glimpse of a more positive aspect of relationship of this training to these CSR CSR reporting in the future. issues is not explained. Royal and Sun Alliance also identifies its interest in developing “the talent we need for today and for the future,” and confirms that “providing opportunities and experiences for § And the winner is: everyone to develop is a key priority”. Yet how these opportunities will contribute to its CSR Prudential goals remains a mystery to the outsider. DIRECTIONS 06 29
    • This sector’s sustainability reporting is, of Both Cairn and BG Group give clever Oil & Gas: course, long-established and considered by summaries of their progress for each section. many to lead the field, so this is really the BP deserve special mention for their clear BG Group battle of the heavyweight reports! And targets to increase the amount of renewable BP they’re impressive – lots of tracking data energy generated in the next few years, and Cairn Energy against targets, discussion of the outcomes for their efforts to communicate sustainability Shell of stakeholder engagement, and examples issues to a wider audience than just the report of where the companies have made a real readers (for communications in the widest difference. sense they would get the gong!). But the prize goes to Shell for sheer readability of reporting, Panellist: But what makes them (mostly) readable is and for the inclusion of extensive external Jenny Dawkins the focus on the key business issues – climate commentary – there is a great Q&A with the change is the biggie, of course, and Shell does CEO, asking all those difficult questions that particularly well in positioning this centre you would like to raise. stage. I was also impressed by BP’s section on access to energy and Cairn Energy’s coverage of the issue of water use, a pressing human rights issue in one of their Asian sites. Shell and Cairn Energy do best in giving an overview of the particular issues facing their major sites. All of the companies are open about the challenges they face, and Shell and BP include straight-talking acknowledgments of their shortcomings. They are also good at explaining § And the winner is: the reasons for movements in the trends, although more about their future plans for Shell addressing problem areas would be useful. The amount of information published by As an airport operator, the issues faced by Real Estate: each company in this sector is impressive. BAA are obviously different. The report clearly All the reports are packed full of performance identifies climate change as the top issue BAA data and detailed action plans/targets which and sets out the company’s response to British Land give the impression that CR is being taken this challenge – lobbying for aviation to be Hammerson seriously. included in the EU Emissions Trading Scheme Land Securities and setting up a charge and discount scheme The key issue for real estate companies to reward airlines which use cleaner fleets. Liberty International is sustainable and green building design. The extent to which the reports address All the companies (except Hammerson) this issue varies. British Land appears to be have stuck to the traditional printed format. Panellist: leading the way with its Sustainability Brief I thought that BAA struck a good balance Emily Osband for new developments, which sets out a between print and web – with a 20 page process for integrating sustainability into the printed summary and more detail on the design and construction of new buildings. website. With reports running at over 30 The other companies tend to report just one pages, Land Securities and British Land could off examples of green innovation – rather perhaps shift some of the detail to the web. than an overall strategy. But for overall effectiveness Land Securities The Land Securities report is the most is the winner. engaging. A six page case study brings to life the company’s efforts to minimise the environmental impacts of a new high profile office development at New Street Square § And the winner is: in London. It helps to demonstrate that sustainability is not just for niche projects Land Securities and gives a glimpse of exciting possibilities. 30 DIRECTIONS 06
    • There hasn’t been much improvement in produces nothing. SAP has a few web pages Software & Sage’s reporting over the past year. There of policy and a couple of achievements, but Computer are a couple of pages in the annual report and the website lists policies with a few there is even less real-life activity with policy as the main (but brief) feature. Services: top line achievements under headings of Employment, Our Marketplace, Environment Sage would have to be the winner out of these and Community. But it isn’t insightful. Sage UK three but I’d rather withhold the prize! Sage does produce a 15 page report which includes forward looking targets and objectives, and covers ethical business practices, suppliers, Panellist: customers and people. Unfortunately it is Lucie Harrild all brief and perfunctory and there is no contextual or illustrative detail so the reader gets no feel for what is (or isn’t) going on. As this sector is a group of one I’ve looked at § And the winner is: the EURO 250 for comparison but it is all very disappointing. Two German companies become Sage the competition, SAP and T-Online. T-Online This diverse sector includes companies Wolseley’s corporate social responsibility Support Services: specialising in areas such as outsourced report is a step ahead. It covers its major customer contact, distribution and waste impacts (the timber sourcing and fleet Brambles Industries management. But too often the couple of management sections are particularly good), Capita pages in the annual report devoted to gives a rationale for why they are important Wolseley corporate responsibility give bland statements areas for the business and demonstrates about community, environment, health and some impressive progress (although figures safety which could frankly be made about are sometimes patchy and could be presented any company. more meaningfully – how about some charts?). Panellist: Wolseley links responsibility issues to the Jenny Dawkins More information is available online. Capita business strategy, for example in the area has defined what responsibility means to the of recruitment and retention, and highlights company and gives example environmental examples where it has shown leadership in activities, performance data and targets. sector initiatives. Brambles Industries also gives environmental performance data. In both cases, better coverage could be given to social impacts – more data and targets would be beneficial in these areas. Brambles could also do with some more recent case studies! The sector as a whole could include more on their challenges, § And the winner is: and in an industry rife with acquisitions, consideration could be given to the challenge Wolseley of aligning different business cultures. DIRECTIONS 06 31
    • British American Tobacco (BAT) appears to be smoking and are clearly opposed to banning Tobacco: the most transparent – with a Group report of smoking in public places. Imperial Tobacco over 130 pages plus local reports in around states that ‘the statistical population studies British American Tobacco 30 countries. Now in its fifth year of reporting, (epidemiology) which have led to claims that Gallaher the Chief Executive reflects on some key other people’s smoke is a risk to health are Imperial Tobacco achievements since its first report. Examples subject to methodological flaws.’ With an include the introduction of international increasing number of governments worldwide marketing standards, setting up the BAT introducing bans on public smoking, such Biodiversity Partnership and the part played denial will obviously continue to fuel Panellist: by the company in supporting the Eliminating allegations of irresponsibility. Emily Osband Child Labour in Tobacco Foundation. It’s a mature report, with clear action plans and The sector continues its search for the holy targets. However with so much detail, I would grail of a harmless tobacco product – but there’s have really liked a printed summary of key been little progress. BAT says the company is points (like last year). working hard in R&D, but a less hazardous smokeless tobacco that is placed behind the Imperial Tobacco also publishes a pretty upper lip (which is banned across most EU comprehensive report with clear objectives countries) seems unlikely to be its saviour. and targets – running to 86 pages. A four page executive summary on the website provides an overview of performance. Gallaher’s report is the easiest to read – it’s the shortest (50 pages) and has the most sophisticated design. However it lacks some of the substance of its competitors, with quite broad and unchallenging targets. § And the winner is: Although all of the companies clearly acknowledge that their products cause harm, British American Tobacco they go on the serious defensive about passive A V The Travel & Leisure sector is a real mixed bag Investor Relations section and some is in the Travel & Leisure: with planes, cruise ships, pubs, hotels, food, Corporate Information section of the website. drink and gambling (with and without British Airways premises) all making an appearance. So that brings us to the gamblers and BA. Carnival PartyGaming doesn’t report and cites on Compass Group Carnival (cruise ships) focuses on the the website its membership of GamCare, the Enterprise Inns environmental side of things and its current charity which promotes responsible gambling. Intercontinental Hotels structure for governing the environmental Ladbrokes does report although the latest performance was developed in 2002 as part report includes Hilton Hotels which was sold in Ladbrokes of a settlement with the United States February. However the Ladbrokes part covers Partygaming government. And it shows – it is heavily based responsible gaming, employee development Whitbread on maritime law and is a very internal facing (Ladbrokes Academy) and environmental document. Shockingly there is no health and issues and so the future looks encouraging. safety information. Panellist: BA, perhaps unsurprisingly, comes out as the Lucie Harrild Major gaps in disclosure continue to be a winner. But its reports for 2006 are surprising theme – Compass has only two pages in – it has changed its reporting structure this its annual review and some policies on the year and is putting more information into website. There is some information in the OFR the annual report. No bad thing in itself but of 2005’s annual report but it is very poor for the transition looks messy with the CR report the size and impacts of the organisation. relegated to a series of pdfs which aren’t accessible or engaging and some data will not The pubs and hotels are also hit and miss. be complete for this year. It would have been Whitbread’s last accident figures are from better to concentrate on getting the web 2002/2003. It does produce a brochure called pages looking right in order to lead readers ‘Taking our responsibilities seriously’ but through the change. Hopefully next year will that doesn’t give much factual information. be clearer. Enterprise Inns only manages four pages in the annual report, which are replicated on the site. And Intercontinental Hotels is a work in § And the winner is: progress as it says it will be communicating more in 2006. Currently though it is quite British Airways confusing, as some information is in the 32 DIRECTIONS 06
    • The winners § Aerospace & Defence § Healthcare Equipment BAE Systems & Services and Health, Pharmaceuticals & Biotech § Banks Smith & Nephew HSBC § Household Goods § Beverages Reckitt Benckiser Diageo § Industrial Metals § Chemicals Corus Group Johnson Matthey § Media § Construction BSkyB Hanson ITV § Electricity § Mining Scottish Power Anglo American Rio Tinto § Fixed Line Telecommunications § Non-life Insurance and and Mobile Life Insurance Telecommunications Prudential BT § Oil & Gas § Food & Drug Retailers Shell Tesco § Real Estate § Food Producers Land Securities Unilever § Software & Computer § Gas, Water & Services Multi-utilities Sage United Utilities § Support Services § General Financial Wolseley Man Group § Tobacco § General Industries British American Tobacco REXAM § Travel & Leisure § General Retailers British Airways Marks & Spencer DIRECTIONS 06 33
    • Analysis of We have made every effort to ensure that the Euro 250 data in Directions are accurate. and FTSE 100 The research is based on company websites and printed reports. Every attempt was made to verify the data with each company Methodology on the phone or via email. If we have missed data, please get in touch and we will update our records. The categories we have chosen are not judgemental but Research conducted by the following rules and definitions were applied to ensure Jo Sampson and salterbaxter a consistent approach. 1. The cut-off date 5. Independent verification statement 11. OFR Our assessments are based on information Report includes a formal verification/ Shows if the company has produced an in the public domain by 1 July 2006. assurance statement by third parties. We have Operating and Financial Review and titled it not counted informal comments by external as such. 2. The list of Euro 250 and FTSE 100 commentators. Companies 12. Performance against environmental targets Taken from the Financial Times website 6. FTSE4Good Index The report covers a range of environmental and dated 31 March 2006. Company included in any of the FTSE4Good impacts and the company's performance data Index Series (Global, US, Europe, UK). is reported against specific targets for 3. CR Report – years continuous improvement. Shows the number of years the company 7. Dow Jones Sustainability Index (DJSI) has published either a CR Report, Sustainable Company included in any of the DJSI series 13. Performance against social targets Development or EHS Report. Reports not (World, STOXX, EURO STOXX). The report covers a range of social impacts archived in the company's website may not and the company’s performance data is be counted. Mergers and acquisitions may 8. United Nations Global Compact (UNGC) reported against specific targets for affect these data by reducing the number of Signatory to the United Nations Global continuous improvement. years recorded. Compact. 14. The Euro 250 and FTSE 100 4. CR Report – format 9. Business in the Community Ranking The Euro 250 and FTSE 100 combined are a Shows the format of the report ie printed Position in Business in the Community’s (BITC) group of 297 companies. This means that 47 summary, printed in full, web report. We CR index. It is also noted when a company companies are in the FTSE 100 but fall outside indicate if the report is limited in scope or declares it is a member but is not in the index. the EURO 250. The following charts and the integrated within the annual report. We do analysis overview lists information for the not count the following as reports: web pages 10. Climate Leadership Index group as a whole but separated by sectors on CR which cover policies and programmes Shows inclusion in the Climate Leadership for ease of reference. (without time-specific performance Index. The index is based on company information) and single issue reports e.g. responses to the Carbon Disclosure Project on community, HIV, supplier diversity. and comprises the 60 “best in class”. ite bs ort we rge aga ts ite rep so form ntal ainst t l ta ce arge ts ins on bs rs ary we ort Pe onme ce ag t ea ort mm ex on rep –y g d n kin Euro 250 listing on the left Ind rep ort vir an cia an oo ort tio su ort ary FTSE 100 listing on the right an en form ep try 4G ica te ep ed ed rep mm Cr tes GC br ma un SE ll r int int rif SI R r r BIT UN We No CR OF Pe Sector name DJ Co Su Ve FT Cli Fu Pr Pr 71 — COMPANY NAME Fr 1 • • • • • –– –– –– • –– –– –– –– –– a) Comment b) More comment KEY Yes a See comments CR/CSR = Corporate Responsibility/Corporate Social Responsibility AR = Annual Report EHS = Environment, Health & Safety m = Member of Business in the Community 34 DIRECTIONS 06
    • 43 % Euro 250 and FTSE 100 Analysis overview of companies have independent verification statements 59 report on the web % 48 Sustainability Index % of companies are in the Dow Jones % 47 % produce printed reports 57of companies are in the FTSE4Good Index 47 % are signatories to the United Nations Global Compact UK vs EURO: We also had a quick look for trends in the use of printed reports and web reports in the UK and in Europe. Printed reports in UK 49% Printed reports in Europe 37% Web reports in UK 59% Web reports in Europe 47% DIRECTIONS 06 35
    • Euro 250 and FTSE 100 Analysis ite bs ort we rge aga ts ite rep so form ntal ainst t l ta ce arge ts ins on bs rs ary we ort Pe onme ce ag t ea ort mm ex on rep –y g d n kin Euro 250 listing on the left Ind rep ort vir an cia an oo ort tio su ort ary FTSE 100 listing on the right an en form ep try 4G ica te ep ed ed rep mm Cr tes GC br ma un SE ll r int int rif SI R r r BIT UN We No CR Aerospace & Defence OF DJ Pe Co Su Ve FT Cli Fu Pr Pr 71 — EADS Fr 1 –– • –– • –– –– –– –– • –– –– –– • –– 106 26 BAE SYSTEMS UK 5 • • –– • –– • –– • –– m –– • • • 178 42 ROLLS-ROYCE GROUP UK 8a –– • –– • –– b –– • –– 17= –– –– • –– a) Environment report only for 7 years and a H&S report for 1 year. Information in AR b) Verification of environmental data only 228 — SAFRAN Fr –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– Company created by merger in ’05, reporting cycle not yet reached 255 54 SMITHS GROUP UK 4 –– • • –– • • –– –– –– m –– • • • Automobiles & Parts 43 — DAIMLER CHRYSLER G 3 • • –– • –– –– ––• • –– • –– • • 67 — BMW GROUP G 6a • • –– • –– –– • • • –– • –– • • a) 2 year reporting cycle, prior to that produced single issue reports 80 — RENAULT Fr 5a a a –– • –– –– –– –– • –– –– –– • • a) 5 years, integrated with AR and web report 94 — VOLKSWAGEN G 1 • • –– • –– • • –– • –– –– –– • • 156 — CONTINENTAL G a a a –– • –– ––• –– –– –– –– –– –– –– a) Information in AR and on website 157 — FIAT It 2 • • –– –– –– • –– –– • –– –– –– • • 170 — PEUGEOT Fr 3a • • –– • –– • • –– • m –– –– • • a) 1 year standalone, prior to that produced information in AR and on web pages Banks 4 1 HSBC UK 6 • • –– • –– • • • • m • –– • • 12 — UBS Sw 8a –– a –– • –– • • • • m • –– • –– a) Produce environment reports only 14 6 ROYAL BANK OF SCOTLAND UK 4 • • –– • –– • • • • m –– • • • 17 — SANTANDER CENTRAL HISPANO Sp 4 • • –– –– –– • • • • –– –– –– • • 21 — BNP PARIBAS Fr 4 • • –– –– –– • • • • m –– –– –– –– 24 8 BARCLAYS UK 7 • • • • –– • • • a 3 –– –– • • a) Barclays Bank of Ghana only 25 — UNICREDITO ITALIANO It 6 • • –– • –– • • • • –– –– –– • –– 28 — BBVA Sp 4 • • –– • –– • • • • –– –– –– • • 31 — CREDIT SUISSE Sw 12 a b–– • –– –– • • • m –– –– • –– a) Section in AR b) Various online reports: Energy and Material Report, Milestones and Indicators, CSG and Society Report 34 — SOCIETE GENERALE Fr 2 –– • –– • –– • • • • m –– –– • • 35 9 HBOS UK 3a –– • –– • –– • • • –– 10= • –– • • a) Pre-merger Bank of Scotland and Halifax produced reports 39 — DEUTSCHE BANK G 9 • • –– • –– • • • • m –– –– • • 42 — CREDIT AGRICOLE Fr 3 • • –– • –– –– • –– • –– –– –– –– –– 45 — ABN AMRO N 3 • • • • –– • • • • –– • –– • • 48 12 LLOYDS TSB UK 9 • • • –– • • • • –– 10= –– • • –– 55 — FORTIS B/N 2 • • –– –– –– • • • • –– • –– –– –– KEY Yes a See comments CR/CSR = Corporate Responsibility/Corporate Social Responsibility AR = Annual Report EHS = Environment, Health & Safety m = BITC member 36 DIRECTIONS 06
    • ite bs ort we ts ite rep t so form ntal ainst ts ains l ta ce arge on bs rs ary we ort rge ag Pe nme ce ag t ea ort mm ex on rep –y g d kin Euro 250 listing on the left Ind n rep ort cia an vir an oo ort su tio ort ary FTSE 100 listing on the right an ep en form try 4G te ica ep ed ed rep mm Cr o GC br tes ma un SE ll r int int SI rif R r r BIT UN We Banks (continued) CR OF No DJ Co Su FT Cli Pe Fu Ve Pr Pr 62 — BANCA INTESA It 1 ––• –– –– –– –– –– –– • –– –– –– –– –– 64 — KBC GROUPE B 2 • • –– • –– • • –– –– –– –– –– –– –– 74 — NORDEA BANK Swe –– –– –– –– a –– –– –– –– • –– –– –– –– –– a) Developing web report 77 19 STANDARD CHARTERED UK 5 • • –– • –– –– • –– • –– –– –– • • 84 — SBERBANK OF RUSSIA Ru –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– 88 — DEXIA B 5 • • –– –– –– • • • • –– • –– –– –– 90 — SAN PAOLO IMI It 4 • • –– • –– • • –– • –– –– –– • • 96 — COMMERZBANK G 1 • • –– • –– –– –– –– –– –– –– –– –– –– 105 — DANSKE BANK Den –– –– –– –– • –– –– –– –– –– –– –– –– –– –– 114 — ERSTE BANK Aus a –– –– –– –– –– –– –– –– –– –– –– –– –– –– a) Have begun reporting in AR with objectives to increase it 115 — CAPITALIA It a –– –– –– • b –– –– –– –– • –– –– –– –– –– a) 1st report due in Sept 2006 b) Web report in Italian 116 — AIB Ire a a a –– –– –– –– –– –– –– m –– –– –– –– a) Information in AR for 3 years 132 — SVENSKA HANDELSBANKEN Swe –– –– –– –– • –– –– • –– –– –– –– –– –– –– 137 — BANK OF IRELAND Ire a a a –– • –– ––• –– –– m –– –– –– –– a) Information in AR for 3 years 139 — DNB NOR Nor 1 • • –– • –– • • –– • –– –– –– • • 141 — BANCO POPULAR ESPANOL Sp 3 • • –– –– –– • –– –– • –– –– –– –– –– 144 — SEB Swe –– –– –– –– • –– –– –– –– • –– –– –– –– –– 146 — MEDIOBANCA It –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– 151 — TURKIYE IS BANK Tur –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– 159 — NATIONAL BANK OF GREECE Gre 10a a –– –– • –– –– • –– –– –– –– –– –– –– a) 10 years of Social Activities report (printed & distributed to shareholders) 165 — AKBANK Tur –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– 166 — FORENINGSSPARBANKEN Swe a –– –– –– –– –– –– • • • –– –– –– –– –– a) Produced reports in ’01 and ’02, now integrate into AR – 4 pages 185 — BANCA MONTE DEI PASCHI It 5 • • –– • –– • • • • –– –– –– –– –– 187 — NATEXIS BANQUE Fr a –– –– –– –– –– –– –– –– –– –– –– –– –– –– a) 13 pages in AR ‘05 POPULAIRE 195 — EFG EUROBANK ERGASIAS Gre 3 • • –– –– –– –– • –– –– –– –– –– • –– 200 — RAIFFEISEN Aus –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– INTERNATIONAL 206 — DEUTSCHE POSTBANK G 1 • • –– • –– –– • –– • –– –– –– –– –– Only information available refers to the group (Postbank is part of Deutsche Post) 209 — ANGLO IRISH BANK Ire a –– –– –– • –– –– –– –– –– m –– –– –– –– a) Information in AR 217 — BCP Por 1 • • –– –– –– –– –– –– –– –– –– –– –– –– KEY Aus = Austria B = Belgium Cz = Czech Republic Den = Denmark Fin= Finland Fr = France G = Germany Gre = Greece Hun = Hungary It = Italy Ire = Ireland N = Netherlands Nor = Norway Pol = Poland Por = Portugal Ru = Russia Sp = Spain Swe = Sweden Sw = Switzerland Tur = Turkey UK = United Kingdom DIRECTIONS 06 37
    • Euro 250 and FTSE 100 Analysis ite bs ort we ts ite rep so form ntal ainst t l ta ce arge ts ains on bs rs ary we ort g rge ag t ea Pe onm ce a ort mm ex on rep –y g d Euro 250 listing on the left kin Ind rep n ort vir an cia an e oo ort su tio ort ary FTSE 100 listing on the right an en form try 4G ep te ep ed ed ica rep mm Cr GC tes ma br un SE ll r int int SI rif R r r BIT UN CR Banks (continued) OF No We DJ Pe Co Su FT Cli Fu Pr Pr Ve 224 — BANCA NAZIONALE DE LAVORO It 4 • • –– • –– • • –– • –– –– –– –– –– 225 — ALPHA BANK Gre a –– –– –– • –– –– • –– –– –– –– –– • –– a) Have produced a Social Report for 5 years which is a pdf of short excerpts from the AR 227 — PKO BANK Pol –– –– –– –– –– –– –– –– –– • –– –– –– –– –– 240 — BANCO DE SABADELL Sp 3 • • –– • –– –– –– –– • –– –– –– –– –– 242 — BANCO ANTONVENETA It –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– 245 — BANCA POPOLARE DI VERONA It 3 • • –– –– –– • –– –– –– –– –– –– • • 247 — PEKAO Pol –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– 256 55 ALLIANCE & LEICESTER UK 4 • • –– –– –– –– • –– –– m –– –– –– –– 279 63 NORTHERN ROCK UK 4 ––• • –– • • • –– –– –– –– • • • 390 93 BRADFORD & BINGLEY UK 3 • • –– –– ––• • –– –– 52= –– –– • • Beverages 58 16 DIAGEO UK 7 • • –– • –– • • • • 48 –– • • • 83 21 SABMILLER UK 9 –– • –– • –– • • • • m –– –– –– –– 89 — INBEV B 1 –– • –– –– –– –– –– –– • m –– –– –– –– a) Report is on a microsite 133 — HEINEKEN N 5 • • –– –– –– • • • • –– –– –– • • 140 — PERNOD RICARD Fr a a a –– b –– –– • –– • –– –– –– –– –– a) CR report integrated in AR (3 years) b) Some time specific information but out of date 295 67 SCOTTISH & NEWCASTLE UK 5 –– • –– a –– • • –– • 56= –– • –– –– a) Website pages are the content of the report Chemicals 61 — BASF G 17 • • –– • –– • • • • –– • –– • • 85 — BAYER G 5a • • –– • –– • • • • –– • –– • • a) Began environmental reporting in ‘93 109 — AIR LIQUIDE Fr 5 a a –– • –– • –– –– –– –– –– –– • • a) Sustainable development report integrated into AR 164 — AKZO NOBEL N 2a • • –– • –– • • • • –– –– –– • • a) CR information in AR since 2000, standalone report for 2 years 168 — SYNGENTA Sw 3 • • –– a –– • –– • –– m –– –– –– • a) Website pages are the content of the report. 184 43 BOC GROUP UK a –– b –– • –– –– • –– • 24= c –– –– –– a) CR information integrated in AR since ‘98 b) Available to download: 10 pages in AR and submissions to BITC, Carbon Disclosure Project and UNGC c) Included in KLD’s Global Climate 100 Index 232 — LINDE G 1 • • –– –– a –– –– –– • –– –– –– –– –– a) Website pages are the content of the report 250 — SOLVAY B 14a • • • • • b b –– –– –– –– –– –– –– • • a) Environmental reporting only until ‘00. Have produced 2 sustainability reports since ‘01. Began reporting in ’96 but not on an annual basis (4 reports over 10 years) b) Summary produced in German, Italian, Portuguese and Spanish. Quantitative data produced in English and French KEY Yes a See comments CR/CSR = Corporate Responsibility/Corporate Social Responsibility AR = Annual Report EHS = Environment, Health & Safety m = BITC member 38 DIRECTIONS 06
    • ite bs ort we ts ite rep so form ntal ainst t l ta ce arge ts ains on bs rs ary we ort Pe onm ce ag rge ag t ea ort mm ex on rep –y g d Euro 250 listing on the left n kin Ind rep ort vir an cia an e oo ort tio su ort ary FTSE 100 listing on the right an en form try 4G ep ica te ep ed ed rep mm Cr GC tes ma br un SE ll r int int rif SI R r r BIT UN Chemicals (continued) CR OF No We DJ Co Pe Su Ve FT Cli Fu Pr Pr 323 73 ICI UK 15a –– • • –– • • • • • –– –– • • • a) Produced a ’90-’95 review and then continued to report annually 404 98 JOHNSON MATTHEY UK 4 –– • –– –– –– –– • –– –– m –– • • • Construction & Metals 103 — SAINT GOBAIN Fr a b b –– • –– –– • • • –– –– • –– –– a) Detailed report in AR since ‘02 b) 34 pages in AR 124 — LAFARGE Fr 5 • • –– • –– • • • • ma –– –– • • a) Lafarge UK is a member of BITC 127 — VINCI Fr a b c –– –– –– • –– • • –– –– –– –– –– a) Report in AR for 5 years b) 41 pages in AR c) AR on website and pdf of sustainable development pages on website 130 — CRH Ire 3 ––• –– –– –– • • • –– –– –– –– –– –– 135 — HOLCIM Sw 6a • • –– • –– b • • • –– –– –– • • a) 3 reports have been produced in 2 year reporting cycles b) Verification only covers CO2 emissions 142 — BOUYGUES Fr a a a –– • –– –– –– –– • –– –– –– –– –– a) 56 pages of sustainable development report integrated into AR 186 — ACS Sp a b b –– • –– –– –– –– • –– –– –– • –– a) Detailed report in AR for 2 years b) 54 pages integrated in AR with its own pdf 189 — HEIDELBERGCEMENT G 1 • • –– • –– ––• –– • –– –– –– • • 218 — GRUPO FERROVIAL Sp a b b –– • –– • • • • c –– –– • –– a) Report in AR for 5 years b) 30 pages in AR c) Amey is UK subsidiary and 75= 243 — ACCIONA Sp 1 • • –– • –– • –– –– • –– –– –– –– –– 260 57 HANSON UK 5 –– –– –– • –– –– –– –– –– –– –– –– –– –– Electricity 15 — EDF Fr 5a –– • • b b –– • b –– –– –– • 29= –– –– • • b b a) ’00 and ’02 information in AR b) ‘04 most recent report and data available 49 — ENEL It 9a • • –– –– • • • • –– –– • –– –– –– a) Sustainability reports for past 4 years 72 — ENDESA Sp 5 • • –– • • –– • • –– –– • –– –– –– 86 — UNIFIED ENERGY SYSTEM Ru 1 • • a a –– –– • • –– –– –– b –– –– –– • • a) Only in Russian b) Summary in English 87 — IBERDROLA Sp 3 • • –– • –– • –– • • –– • –– • –– 112 — FORTUM Fin 7a –– –– –– • –– –– –– • –– –– –– –– –– –– a) 6 yrs of Society report, now integrated in AR 119 — CEZ Cz a –– –– –– a –– –– –– –– –– –– –– –– –– –– a) ’03 is last available report and web information, 4 pages in AR ‘05 129 31 SCOTTISH POWER UK 10 –– • • • • • • –– –– 20= • –– • • 148 34 SCOTTISH AND SOUTHERN ENERGY UK 7a • • • –– • • • –– –– 7= –– –– • • a) 2 CR/Sustainability, prior to these reports have been single issue or in AR 173 — ENERGIAS DE PORTUGAL Por 9a • • –– • –– • –– –– • –– –– –– • • a) 3 CR, prior to these reports have been in AR 212 — UNION FENOSA Sp 4 –– • • • • –– –– –– • –– –– –– –– –– 319 72 INTERNATIONAL POWER UK 4 –– –––– • –– –– • –– –– 44= –– –– • • KEY Aus = Austria B = Belgium Cz = Czech Republic Den = Denmark Fin= Finland Fr = France G = Germany Gre = Greece Hun = Hungary It = Italy Ire = Ireland N = Netherlands Nor = Norway Pol = Poland Por = Portugal Ru = Russia Sp = Spain Swe = Sweden Sw = Switzerland Tur = Turkey UK = United Kingdom DIRECTIONS 06 39
    • Euro 250 and FTSE 100 Analysis ite bs ort we ts ite rep t so form ntal ainst l ta ce arge ts ains on bs rs ary we ort rge ag Pe nme ce ag t ea ort mm ex on rep –y g d Euro 250 listing on the left n kin Ind rep ort cia an vir an oo ort tio su ort ary FTSE 100 listing on the right an ep en form try 4G ica te ep ed ed rep mm Cr o GC br tes ma un SE ll r int int rif SI R r r BIT UN We CR Electricity (continued) OF No DJ Co Su Ve FT Cli Pe Fu Pr Pr 360 85 BRITISH ENERGY UK 3 • • –– • –– –– –– –– –– –– –– –– • –– 394 94 DRAX GROUP UK a –– –– –– –– –– –– –– –– –– b –– • –– –– a) 4 pages in AR with data b) Drax Power is a member of BITC Electronic & Electrical Equipment 19 — SIEMENS G 6a –– • –– –– –– • • –– –– –– • –– –– –– a) Prior to ’00 produced single issue reports 97 — ABB Sw 6a • • • • • • • • •b m –– –– • –– a) Prior to ’00 produced single issue reports b) Foreign language summaries printed 101 — SCHNEIDER ELECTRIC Fr 3 • • –– • –– • –– • • –– –– –– • • Fixed Line Telecommunications 22 — TELEFONICA Sp 4 –– • • –– • • • • • –– –– –– –– –– 26 — DEUTSCHE TELEKOM G 7 • • –– • –– –– • • • –– • –– • –– Merged with T-Online June ‘06 41 — FRANCE TELECOM Fr 3a • • • • • –– • –– • –– –– –– –– –– a) Previous reports are for Orange and not available 46 — TELECOM ITALIA It 6 a • –– • –– • • • • –– –––– • –– a) Report is integrated with AR 79 20 BT GROUP UK 14a –– • • • • • • • • 4= • • • • a) Single issue reports prior to ‘00 102 — KPN N 3 –– • –– –– –– • –– –– –– –– –– –– –– –– 125 — SWISSCOM Sw 6 –– –– • –– • • a • –– –– –– –– • –– a) Pdfs of pages in AR 176 — PORTUGAL TELECOM Por 2 • • –– –– –– • • –– • –– –– –– –– –– 208 — TELEKOM AUSTRIA Aus 4 a –– • a –– • • –– –– –– –– –– a –– a) ’04 is last printed report, ’05 report is web only 213 — BELGACOM B a –– a –– –– –– –– –– –– –– –– –– –– –– –– a) Reports from a subsidiary, Proximus 223 — OTE Gre 2 • • –– –– –– –– –– –– –– –– –– –– –– –– Food & Drug Retailers 57 15 TESCO UK 5 • • –– • –– ––• • –– 16 • • • • 66 — CARREFOUR Fr 5 • • –– a –– • • • • –– –––– • • a) Information on web pages but data is out of date 197 — AHOLD N 8 • • –– a –– –– –– –– –– –– –– –– –– –– a) Information on web pages but not time specific 246 52 SAINSBURY (J) UK 10a –– • –– • –– –– • • –– 29= –– –– • • a) 3 years of CR reports, previously single issue 275 61 MORRISON (WM) UK 1 –– a –– –– –– –– –– –– –– –– –– –– –– –– a) Pdf of 3 page excerpt from AR SUPERMARKETS 389 92 ALLIANCE UNICHEM UK 1a –– • –– –– –– –– • –– –– –– –– • • • a) Merged with Boots July ’06. All this data is for Alliance Unichem Food Producers 11 — NESTLE Sw 4 a –– –– • –– b –– • • m –– –– –– –– a) Only Latin America produces written report b) Only environmental indicators verified 29 22 UNILEVER N/UK 10a • • –– • –– • • • • 31= • –– • • a) Combined Environment and Social report in ’05, previously produced separately 78 — DANONE Fr 8 • • –– • –– • –– • • ma –– • •–– a) Danone UK & Ireland is a member 118 28 CADBURY SCHWEPPES UK 7 • • –– • –– • • • • 36= • • • • KEY Yes a See comments CR/CSR = Corporate Responsibility/Corporate Social Responsibility AR = Annual Report EHS = Environment, Health & Safety m = BITC member 40 DIRECTIONS 06
    • ite bs ort we ts ite rep so form ntal ainst t l ta ce arge ts ains on bs rs ary we ort Pe onme ce ag rge ag t ea ort mm ex on rep –y g d Euro 250 listing on the left n kin Ind rep ort vir an cia an oo ort tio su ort ary FTSE 100 listing on the right an en form ep try 4G ica te ep ed ed rep mm Cr GC br tes ma un SE ll r int int rif SI R r r BIT UN We Food Producers (continued) CR OF No DJ Pe Co Su Ve FT Cli Fu Pr Pr 210 46 ASSOCIATED BRITISH FOODS UK 3 –– • a b a c –– –– –– –– –– –– –– –– a) Summary in AR b) Case studies but no time specific information c) Available on request 234 — ORKLA Nor 10a –– –– –– • b –– –– –– –– • –– –– –– • –– a) 10 years of environment reports only b) Web pages include social reports Forestry & Paper 194 — UPM-KYMMENE Fin 4a • • –– –– –– –– • •–– –– –– –– • • a) Prior to ’02 published environment reports only 201 — STORA ENSO Fin 4a • • –– • –– • • • • –– • –– • • a) Prior to ’02 published environment reports only Gas, Water & Multi-utilities 23 — E.ON G 2 • • –– • –– –– –– –– • m –– –– –– –– 51 — SUEZ Fr 7 • • –– • –– • –– –– • –– –– –– –– –– 52 — RWE G 9 • • –– • –– • –– • • 14= –– ––• • 69 — GAZ DE FRANCE Fr 5 • • • • • • –– –– • –– –– ––• • 93 24 NATIONAL GRID TRANSCO UK 10 –– –– • • • • • • • 4= –– • • • 110 — VEOLIA ENVIRONNEMENT Fr 6 • • –– • –– • • • • 7=a –– –– • • a) Veolia Water UK only 143 32 CENTRICA UK 6 a • • –– • • • • • 44= –– • • • a) Available in large print, Braille, audio and digital 191 — GAS NATURAL SDG Sp 4 • • –– –– –– • • • • –– –– –– • • 229 50 UNITED UTILITIES UK 4 • • –– • –– • • • –– 17= –– –– • • 343 82 SEVERN TRENT UK 12 –– –– • • • –– • • • 20= –– –– • • General Financial 162 — GBL B –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– 163 — DEUTSCHE BOERSE G a a a –– –– –– –– –– • • –– –– –– –– –– a) 3 pages in AR 182 — INVESTOR Swe –– –– –– –– a –– –– –– –– –– –– –– –– –– –– a) Policy statement only 190 44 MAN GROUP UK 1 • • –– –– –– –– • • • –– –– –– –– –– 238 — JULIUS BAER Sw –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– 270 60 3I GROUP UK a –– a –– –– –– –– –– • –– 81= –– –– • –– a) Pages from AR are downloadable as separate pdf 305 69 AMVESCAP UK –– –– –– –– a –– –– • –– –– –– –– –– –– –– a) Policy statements and some details on community involvement 375 89 SCHRODERS UK 3 –– –– –– • –– –– • • –– –– –– • –– –– General Industrial 169 — THYSSENKRUPP G 1a a –– –– • –– –– –– –– b –– –– –– –– –– a) Thyssenkrupp Steel has reported on sustainability for 1 year, in print and on the website (German only) b) Thyssenkrupp Ascenseurs, France is only participant 401 97 REXAM UK 3 a a –– • –– –– –– –– –– –– –– • • –– a) Last available report is ’04 as moving to web based reporting which will launch end ‘06 KEY Aus = Austria B = Belgium Cz = Czech Republic Den = Denmark Fin= Finland Fr = France G = Germany Gre = Greece Hun = Hungary It = Italy Ire = Ireland N = Netherlands Nor = Norway Pol = Poland Por = Portugal Ru = Russia Sp = Spain Swe = Sweden Sw = Switzerland Tur = Turkey UK = United Kingdom DIRECTIONS 06 41
    • Euro 250 and FTSE 100 Analysis ite bs ort we ts ite rep t so form ntal ainst ts ains l ta ce arge on bs rs ary we ort rge ag Pe nme ce ag t ea ort mm ex on rep –y g d Euro 250 listing on the left n kin Ind rep ort cia an vir an oo ort tio su ort ary FTSE 100 listing on the right an en form ep try 4G ica te ep ed ed rep mm Cr o GC br tes ma un SE ll r int int rif SI R r r BIT UN We CR General Retailers OF No DJ Co Su Ve FT Cli Pe Fu Pr Pr 95 — HENNES & MAURITZ Swe 4 –– • –– • –– –– • • • –– –– –– • • 104 — INDITEX Sp 4 • • –– • –– • –– –– –– –– –– –– • –– 149 — METRO G 5 • • –– –– –– –– –– • a –– –– –– • • a) Metro Cash and Carry (subsidiary) only 153 35 MARKS & SPENCER UK 5 • • –– • –– • • • –– 20= –– –– • • 154 36 GUS UK 6 • • • –– • • • • –– 50= –– –– • • 172 — PPR Fr 4a b b–– –– –– • –– –– c –– –– –– • • a) Biannual reporting. Next full report due ‘07 b) Detailed pages in AR which are downloadable as separate pdf c) In French 248 53 KINGFISHER UK 5 –– • • • • • • –– a –– 31= –– –– • • a) Summary and KPI update on website 329 77 NEXT UK 3a –– • –– –– –– • • –– –– m –– –– • • a) 2 reports in 3 years 372 88 BOOTS GROUP UK 7 • • • • –– –– • • –– 10= –– • • • Boots Group became Alliance Boots in July 06. This data refers to Boots Group pre-merger 380 91 DSG INTERNATIONAL UK 4 a –– –– • –– –– • • –– m –– –– • –– a) 6 pages in AR Healthcare Equipment & Services 193 — SYNTHES Sw –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– 215 — FRESENIUS MEDICAL CARE G a a –– –– b –– –– –– c –– –– –– • –– –– a) Information in AR b) Environmental and animal testing policies only c) Included in ‘06 index after this research period 290 66 SMITH & NEPHEW UK 12 –– • –– –– a –– • • –– m –– • –– • a) Guide to report produced for employees Household Goods 98 25 RECKITT BENCKISER UK 6 • • a • –– • • • –– 17= –– • • • a) Excerpt sent to shareholders 152 — HENKEL G 6 • • –– • • –– • • • –– –– –– • • 341 81 PERSIMMON UK 4 –– • –– –– –– –– –– –– –– –– –– –– • • Industrial Engineering 126 — VOLVO Swe 16a b –– –– • –– –– –– • • –– –– –– –– –– a) Began environmental reporting in ’90 b) Integrated with AR, 13 pages (since ’02) 145 — ATLAS COPCO Swe 5 • • a a –– • –– –– –– • • –– –– –– –– • a) Integrated with AR but also available as standalone report 180 — SANDVIK Swe 1 –– –– –– • –– –– • –– –– –– –– –– –– –– 216 — ALSTOM Fr 1 • • –– –– –– –– –– –– –– –– –– –– –– • 235 — VALLOUREC Fr 3a a –– –– –– –– –– –– –– –– –– –– –– • –– a) 3 years of environment reports only 249 — MAN G 3a • • –– –– –– –– –– • –– –– –– –– –– –– a) Sustainability reports since ’03, prior to that environment reports only Industrial Metals 68 — NORSK HYDRO Nor 7a b b –– • –– • • • • –– • –– • • a) CSR reports since ’99, environment reports since ‘89 b) Integrated with AR 99 — ARCELOR Fr 4 a b –– • –– –– • • • –– –– –– • • a) Integrated with AR b) Sustainable Development section of AR available as standalone pdf KEY Yes a See comments CR/CSR = Corporate Responsibility/Corporate Social Responsibility AR = Annual Report EHS = Environment, Health & Safety m = BITC member 42 DIRECTIONS 06
    • ite bs ort we ts ite rep t so form ntal ainst l ta ce arge ts ains on bs rs ary we ort rge ag Pe nme ce ag t ea ort mm ex on rep –y g d Euro 250 listing on the left n kin Ind rep ort cia an vir an oo ort tio su ort ary FTSE 100 listing on the right an en form ep try 4G ica te ep ed ed rep mm o Cr GC br tes ma un SE ll r int int rif SI R r r BIT UN We Industrial Metals (continued) CR OF No DJ Pe Co Su Ve FT Cli Fu Pr Pr 121 — MMC NORILSK NICKEL Ru 2a • • –– –– –– • –– –– –– –– –– –– –– • a) Titled Social Report but briefly covers sustainability and environment 199 — NOVOLIPETSK FERROUS Ru 4a a a –– • –– –– –– –– –– –– –– –– • –– a) Integrated with AR 340 80 CORUS GROUP UK 3 • • –– • –– • –– –– –– –– –– –– • • Industrial Transportation 65 — A P MOLLER-MAERSK Den –– –– –– –– a –– –– –– –– –– –– –– –– –– –– a) Policies with brief information on environmental achievements and community involvement 81 — DEUTSCHE POST G 4a • • –– • –– • • –– • –– –– –– • –– a) ’06 is first sustainability report, previous 3 years were single issue reports 158 — TNT N 2 • • –– –– –– • –– • • a –– ––• • a) TNT UK is a member 161 39 BAA N 17 a • • –– • • –– • –– 2 –– • • • a) Individual airports produce printed reports 175 — AUTO ROUTES DU SUD DE LA FRANCE Fr 3 • • –– • –– • • –– • –– –– –– –– –– 177 — AUTOSTRADE It 9 • • a –– • –– • –– –– • –– –– –– • • a) Integrated with AR but also available as standalone report 179 — ABERTIS Sp 3 • • –– • –– • –– • • –– –– –– –– –– Leisure Goods 59 — PHILIPS ELECTRONICS N 4a • • –– –– –– • • • b c –– –– • • a) CR reports since ’02, single issue since ‘98 b) Pakistan business is a signatory c) Philips Electronics UK is a member Life Insurance 18 — ING N 6 • • –– • –– • • • a –– –– –– • • a) ING Bulgaria is a signatory 75 18 AVIVA UK 8a –– • • • • • • • • m –– –– b b a) 7 years of CSR reports and one environment report in ‘99 b) Business Unit level targets included in web report 82 — AEGON N 3 • • –– –– –– –– • • –– –– –– –– –– –– 91 23 PRUDENTIAL UK 5 • • –– • –– –– • –– –– m –– –– • • 128 30 OLD MUTUAL UK 5 • • –– –– –– a • b c –– –– –– –– –– a) Black economic empowerment information only b) Nedbank (South African subsidiary) only c) Old Mutual Kenya is only signatory 155 37 LEGAL & GENERAL UK 6a • • –– –– –– –– • • –– m –– • • • a) 2 years of environment reports prior to 4 years of CSR reports 181 — CNP ASSURANCES Fr a a a –– –– –– –– –– –– • –– –– –– –– –– a) 4 years of reporting integrated with AR 239 — ALLEANZA It a –– –– –– –– –– –– –– –– –– –– –– –– –– –– a) Alleanza is part of Generali Group. Some of its CR activities are included in Generali’s first report 304 68 FRIENDS PROVIDENT UK 5 –– • –– • –– –– • • –– 36= –– –– • • KEY Aus = Austria B = Belgium Cz = Czech Republic Den = Denmark Fin= Finland Fr = France G = Germany Gre = Greece Hun = Hungary It = Italy Ire = Ireland N = Netherlands Nor = Norway Pol = Poland Por = Portugal Ru = Russia Sp = Spain Swe = Sweden Sw = Switzerland Tur = Turkey UK = United Kingdom DIRECTIONS 06 43
    • Euro 250 and FTSE 100 Analysis ite bs ort we ts ite rep t so form ntal ainst ts ains l ta ce arge on bs rs ary we ort rge ag Pe nme ce ag t ea ort mm ex on rep –y g d Euro 250 listing on the left n kin Ind rep ort cia an vir an oo ort tio su ort ary FTSE 100 listing on the right an en form ep try 4G ica te ep ed ed rep mm o Cr GC br tes ma un SE ll r int int rif SI R r r BIT UN We CR Media OF No DJ Pe Co Su Ve FT Cli Fu Pr Pr 63 — VIVENDI UNIVERSAL Fr 7a • • –– –– –– • –– –– –– –– –– –– –– –– a) ’99 was an environment report only 108 45 REED ELSEVIER N/UK 5 –– • –– • –– a • • • 42= –– • • • a) Only environmental data is verified 147 33 BRITISH SKY BROADCASTING UK 5 • • –– –– –– a • • –– 85 –– • • • a) Only environmental data is verified 167 — WPP GROUP UK 3 • • –– • –– –– • • –– m –– • • • 183 — MEDIASET It –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– 221 48 PEARSON UK 3 –– • –– • –– a • • • 24= –– • • –– a) Only environmental data is verified 222 — LAGARDERE GROUPE Fr 1 a a –– –– –– –– –– •–– –– –– –– –– –– a) Integrated with AR, focused on social issues 263 58 REUTERS UK 5 –– –– –– • a –– • • –– m –– • • • a) Summary in AR 282 64 ITV UK 3 • • –– –– –– • • • –– 42= –– –– –– –– 348 83 YELL GROUP UK 3 • • –– • –– –– • • –– m –– • • • Mining 40 10 ANGLO AMERICAN UK 6 • • –– • –– • –– • • 31= • –– • • 47 11 RIO TINTO UK 10 –– • • –– • • –– • • 39= • –– • • 56 14 BHP BILLITON UK 11 –– • • –– • • • • • 24= • –– • • 120 29 XSTRATA UK 4 • • –– • –– • –– • a –– –– • • • a) Included in ‘06 after this research period. 277 62 KAZAKHYMS UK a –– –– –– –– –– –– –– –– –– –– –– –– –– –– a) Company formed ‘05 so reporting cycle not yet reached 316 71 ANTOFAGASTA UK a a b –– –– –– –– –– –– –– –– –– –– –– –– a) 3 years of reporting in AR b) Excerpt from AR is downloadable as pdf 328 76 VEDANTA RESOURCES UK a a b –– –– –– • –– –– –– –– –– –– –– –– a) 2 years of reporting in AR b) Excerpt from AR is downloadable as pdf 349 84 LONMIN UK 5 • • –– • –– • • • –– 78= –– –– • • Mobile Telecommunications 10 5 VODAFONE UK 6 • • –– • –– • • • –– m –– –– • • 92 — TELIASONERA Swe 1 –– • –– –– –– –– • –– –– –– –– –– ––• 134 — TELENOR GROUP Nor 5 –– –– –– • –– –– • • • –– –– –– –– –– 188 — MOBILE TELESYSTEMS Ru –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– 207 — TURKCELL Tur –– –– –– –– a –– –– –– –– –– –– –– –– –– –– a) Some information on community and education activities KEY Yes a See comments CR/CSR = Corporate Responsibility/Corporate Social Responsibility AR = Annual Report EHS = Environment, Health & Safety m = BITC member 44 DIRECTIONS 06
    • ite bs ort we ts ite rep so form ntal ainst t l ta ce arge ts ains on bs rs ary we ort Pe onm ce ag rge ag t ea ort mm ex on rep –y g Euro 250 listing on the left d n kin Ind rep ort vir an cia an e oo ort tio su FTSE 100 listing on the right ort ary an en form ep try 4G ica te ep ed ed rep mm Cr GC br tes ma un SE ll r int int rif SI R r r BIT UN We CR OF Pe No Non-life Insurance DJ Co Su Ve FT Cli Fu Pr Pr 32 — ALLIANZ G 5 ––• • • • –– • • • –– • –– • • 33 — AXA Fr 3 • • –– • –– –– • –– • m –– –– –– –– 53 — GENERALI It 1 • • –– –– –– –– –– –– –– –– –– –– –– –– 73 — ZURICH FINANCIAL SERVICES Sw a a –– –– • –– –– • • –– m –– –– –– –– a) 4 pages in AR 76 — MUNICH RE G 6 a a –– • –– ––• • –– –– • –– –– –– a) SRI report and environment report 107 — AGF F 5a • • –– –– –– • • • • –– –– –– –– –– a) 2 years of standalone reports, before then it was integrated in AR 111 — SWISS RE Sw 8 • • –– • –– a • –– –– –– • –– • –– a) Only verified CO2 emissions 138 — RAS It 2 • • –– –– –– • • • –– –– –– –– –– –– 204 — SAMPO Fin 4 –– • –– –– –– –– • –– –– –– –– –– –– –– 327 75 ROYAL & SUN ALLIANCE UK 6 –– • –– –– –– • • –– –– 96= –– –– –– –– Oil & Gas Producers 1 1 BP UK 12 • • –– • –– • • • • m • –– a a a) Some site and country specific reports give targets 2 2 ROYAL DUTCH SHELL UK 9 • • –– • –– • • • • m • • • • 3 — GAZPROM Ru a –– –– –– –– –– –– –– –– –– –– –– –– –– –– a) One environment report in ’02, ’05 has 3 pages in AR 5 — TOTAL Fr 5a • • –– • –– b • • • m –– –– • • a) Total and Elf merged in ’00 and have produced reports since. Both companies produced environmental reports before ‘00 b) Only certain indicators verified 13 — ENI It 5 • • –– • • –– –– • a –– –– –– –– –– a) 18 pages in AR, separately downloadable 27 — LUKOIL Ru 1a • • –– • –– • –– –– • –– –– –– • –– a) Reporting cycle is biannual 36 — STATOIL Nor 5 • • • • • • • • • –– –– –– • • 37 — SURGUTNEFTEGAS Ru a a –– –– –– –– –– –– –– –– –– –– –– –– –– a) 12 pages in AR 60 17 BG UK 9 • • –– • –– • • • • –– –– • • • 70 — REPSOL-YPF Sp 10a • • –– • –– • • • b –– –– ––• • a) ’96 to ’01 were environment reports only b) Included in ‘06 after this research period 123 — OMV Aus 4 • • –– • • • –– –– • –– –– –– • • 174 — PETROLEOS (CEPSA) Sp 3 • • –– –––– • –– –– • –– –– –– –– –– 196 — TATNEFT Ru –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– 214 — NOVATEK Ru 1 • • –– –– –– • –– –– –– –– –– –– –– –– 220 — MOL MAGYA Hun 4 • • –– • –– –– –– –– • –– –– –– • • 379 90 CAIRN ENERGY UK 6 • • –– –– –– • • –– –– 81= –– –– • • KEY Aus = Austria B = Belgium Cz = Czech Republic Den = Denmark Fin= Finland Fr = France G = Germany Gre = Greece Hun = Hungary It = Italy Ire = Ireland N = Netherlands Nor = Norway Pol = Poland Por = Portugal Ru = Russia Sp = Spain Swe = Sweden Sw = Switzerland Tur = Turkey UK = United Kingdom DIRECTIONS 06 45
    • Euro 250 and FTSE 100 Analysis ite bs ort we ts ite rep so form ntal ainst t l ta ce arge ts ains on bs rs ary we ort Pe onm ce ag rge ag t ea ort mm ex on rep –y g d Euro 250 listing on the left n kin Ind rep ort vir an cia an e oo ort tio su ort ary FTSE 100 listing on the right an en form ep try 4G ica te ep ed ed rep mm Cr GC br tes ma un SE ll r int int rif SI R r r BIT UN We CR Oil Equipment & Services Pe OF No DJ Co Su Ve FT Cli Fu Pr Pr 237 — SAIPEM It 10 • • –– –– –– • –– –– –– –– –– –– • • Personal Goods 44 — L’OREAL Fr 4 • • –– –– –– • • • a –– –– –– • • a) Included in ‘06 after this research period 54 — LVMH Fr 5a b b –– • –– c • • • d –– –– • –– a) 5 years of environment reports b) Sustainable development report integrated with AR c) Verification only applies to environment report d) LVMH Watch and Jewellery UK is a member 100 — RICHEMONT Sw –– –– –– –– • –– –– –– –– –– –– –– –– –– –– 136 — CHRISTIAN DIOR Fr a a a –– –– –– –– • • • –– –– –– –– –– a) Integrated with AR 192 — LUXOTTICA It –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– 202 — BEIERSDORF G 3 –– • –– –– –– –– –– –– –– –– –– –– –– –– 233 — SCA Swe 8 • • –– –– –– a • • –– –– –– –– • –– a) Verification only applies to environment data 236 — SWATCH GROUP Sw –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– 241 — ADIDAS-SALOMON G 6 –– • • • • –– • • –– –– –– –– • • Pharmaceuticals & Biotechnology 6 4 GLAXOSMITHKLINE UK 6 • • • –– • a • • b m • • • • a) Verification applies to EHS sections only b) GSK in Bulgaria, Pakistan, Romania and Ukraine are signatories 7 — NOVARTIS Sw 8 a b –– • –– • –– • • –– –– –– • • a) Report is integrated with AR b) Separate GRI report is downloadable 8 — ROCHE Sw 14 a • –– • • • –– a –– –– –– –– • • a) Report is integrated with AR 9 — SANOFI-AVENTIS Fr 2 • • • –– • • –– • –– –– –– –– –– –– 20 7 ASTRAZENECA UK 6 –– –– • • • • • • –– 39= –– a • • a) Applied best practice principles of OFR 122 — SCHERING G 4 • • –– –– –– –– • –– –– –– –– –– –– –– 131 — NOVO NORDISK G 11 a –– • –– • • • • a –– • –– • • a) Integrated with AR 307 77 SHIRE UK 3 • • –– –– –– –– • –– –– 75= –– –– • • Real Estate 160 38 LAND SECURITIES UK 5 • • • • • • • • –– m –– • • • 219 47 BRITISH LAND UK 4 • • –– • –– • • • –– m –– • • • 334 79 LIBERTY INTERNATIONAL UK 4 • • –– • –– • • –– –– 68= –– • • • 370 87 HAMMERSON UK 3a –– –– –– • –– –– • • –– m –– –– –– –– a) Last available report is ’04, next report will be a web report Software & Computer Services 30 — SAP G a a –– –– –– –– –– • • • –– –– –– –– –– a) 2 pages in AR 211 — T-ONLINE G –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– Merged with Deutsche Telekom in June ‘06 369 86 SAGE GROUP UK 1a a a –– • –– –– • –– –– a –– –– –– –– a) 2 pages in AR b) Sage UK is a member KEY Yes a See comments CR/CSR = Corporate Responsibility/Corporate Social Responsibility AR = Annual Report EHS = Environment, Health & Safety m = BITC member 46 DIRECTIONS 06
    • ite bs ort we ts ite rep so form ntal ainst t l ta ce arge ts ains on bs rs ary we ort g ag t ea Pe onm ce a ort mm ex on rep –y g Euro 250 listing on the left d rge n kin Ind rep ort vir an cia an e oo ort tio su FTSE 100 listing on the right ort ary an en form ep try 4G ica te ep ed ed rep mm Cr GC br tes ma un SE ll r int int rif SI R r r BIT UN We Support Services CR Pe OF No DJ Co Su Ve FT Cli Fu Pr Pr 171 41 WOLSELEY UK a a a –– • –– –– • –– –– –– –– • –– –– a) Report in AR for 3 years 230 — ADECCO Sw 2 • • –– • –– –– • –– • m –– –– –– –– 400 96 BRAMBLES INDUSTRIES UK 3a a b –– • –– –– • • –– –– –– –– –– –– a) Report in AR for 3 years b) 6 pages in AR, separately downloadable as a pdf 419 100 CAPITA UK 4a b –– –– • –– –– • –– –– –– –– –– –– –– a) Report in AR for 6 years and web report for 4 years b) 8 pages in AR Technology Hardware & Equipment 16 — NOKIA Fin 9a ––• –– • –– –– • • • –– –– –– –– –– a) 4 years of CR reports and 5 of environment 38 — ERICSSON Swe 13a • • –– • –– –– • • • –– –– –– • –– a) 5 years of sustainability reports and 8 of environment 113 — ALCATEL Fr 4 • • • • • • • • • –– –– –– • • 150 — STMICROELECTRONICS Fr 5 • • –– –– –– • • • • –– –– –– • • 244 — ASML HOLDING N 7 –– • –– –– –– –– • • –– –– –– –– –– –– Tobacco 50 13 BRITISH AMERICAN TOBACCO UK 5 a • b • –– • • • –– 31= –– –– • • a) Available on request for those without web access b) 2 page summary sent to shareholders, directing them to website 117 27 IMPERIAL TOBACCO UK 5 • • –– • • • –– • –– 64= –– • • • 203 — ALTADIS Sp a a a –– –– –– –– –– –– –– –– –– –– –– –– a) 10 pages in AR downloadable as separate pdf 258 56 GALLAHER UK 5 • • –– • –– –– –– –– –– 78= –– • • • Travel & Leisure 198 — OPAP Gre 1 • –– –– –– –– –– –– –– –– –– –– –– –– –– 205 — ACCOR Fr a a –– –– • –– ––• • • m –– –– • –– a) Reporting in AR for 4 years 226 49 LADBROKES UK 4a –– • –– • –– • • • –– 56= –– • –– –– a) Reported as Hilton plc, recently sold hotel division and is now Ladbrokes plc 231 51 CARNIVAL UK a –– a –– –– –– –– • –– –– –– –– –– –– –– a) 1 year of environmental reporting 264 59 PARTYGAMING UK –– –– –– –– –– –– –– –– –– –– –– –– • –– –– 283 65 COMPASS GROUP UK –– –– –– –– a –– –– • • • m –– • –– –– a) Policy and community information only 326 74 INTERCONTINENTAL HOTELS UK –– –– –– –– a • –– • –– –– –– –– • –– –– a) Policy and community information only 332 78 BRITISH AIRWAYS UK 16a –– –– –– • b • • • –– 78= –– –– • • a) Changing reporting structure to integrate with AR b) ’06 report is an interim report in downloadable pdfs 396 95 ENTERPRISE INNS UK a a –– –– –– –– –– –– –– –– –– –– –– –– –– a) 4 pages in AR 408 99 WHITBREAD UK 5a b b –– • –– b • –– –– 70= –– –– • –– a) Combination of environment reports, AR content and web based information b) Environment report only KEY Aus = Austria B = Belgium Cz = Czech Republic Den = Denmark Fin= Finland Fr = France G = Germany Gre = Greece Hun = Hungary It = Italy Ire = Ireland N = Netherlands Nor = Norway Pol = Poland Por = Portugal Ru = Russia Sp = Spain Swe = Sweden Sw = Switzerland Tur = Turkey UK = United Kingdom DIRECTIONS 06 47
    • About us Salterbaxter is a corporate communications and corporate branding design consultancy. A key area of our expertise is corporate reporting and we advise leading UK and European organisations on the development and design of their financial and CR reporting programmes. Our offer to clients is a balance of a We are a signatory to the United genuine understanding of the corporate Nations Global Compact. governance and reporting agenda with a commitment to producing As part of the Directions series we outstanding creative work. produce monthly articles on a broad range of corporate communications This has been recognised with our work issues. Please contact us if you would receiving numerous awards including like to receive them or contribute the ACCA award for innovation in to one. sustainability reporting for our work with O2, and the DBA/Management Today Design Effectiveness Award for our work with EMI. Reporting/CR clients include: BBC Land Securities British Library Misys BSkyB 02 Business in the Community Provident Financial Daily Mail & General Trust Reuters Ernst & Young Tetra Pak GlaxoSmithKline Unilever Kelda Group Vodafone 48 DIRECTIONS 06
    • To talk more about reporting and embedding CR: Contact Nigel Salter or Lucie Harrild: nsalter@salterbaxter.com lharrild@salterbaxter.com Tel: +44 (0)20 7229 5720
    • We researched the use of sustainable plastics for the dust jacket of this report but did not find anything suitable. We believe alternatives must be made available. So, using advice from the British Plastics Federation, we are making a donation to an organisation developing such materials in order to support their commercialisation in the future. We’d like to hear about alternatives you might have come across, so please get in touch with any recommendations. This supplement is printed on Think4 Bright and is supplied by Howard Smith. It is an FSC (Forest Stewardship Council) certified material and is 100% recyclable. www.hspg.com 202 Kensington Church Street Printed by CTD, an ISO 14001 certified and FSC accredited London W8 4DP company. TT-COC-2142 ©1996 Forest Stewardship Council A.C Tel +44 (0)20 7229 5720 www.ctdprinters.com Fax +44 (0)20 7229 5721 Inside front cover image: www.salterbaxter.com DR GOPAL MURTI/SCIENCE PHOTO LIBRARY