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Directions 2008 The Research


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Directions 2008 The Research

  2. 2. ANALYSIS BY SECTOR AND FT EURO RANKING VOLKSWAGEN HSBC » CONTINUED inconsistent as on the website issues identified are related to customer groups. Although Volkswagen’s sustainability communications some very hard issues are addressed, this 21 FT EURO RANK AUTOMOBILES are an example of absolute best practice, inconsistent approach to the prioritising and tackling the key material issues for this sector rationalising of some 14 issues leaves the and considering issues much larger than it. reader unclear as to how or why issues are The communications, based on these issues, being tackled. are well thought out, easy to understand and to the point. This approach is embedded as ‘doing business as usual’ and is being used BANCO SANTANDER to form long-term strategy. Throughout the website and sustainability report, stakeholders’ 13 FT EURO RANK Although there is little information within the BANKS expectations are referenced and the resulting online CR web pages, there is a good overview actions described. Volkswagen is looking at of where sustainability fits into the business all aspects of its operations and the possible structure. The map of sustainability focuses implications. Dialogue is transparent and on business operations, where issues are frequent with use of success stories and, addressed in order to ensure the continued more unusually, the disclosure of problems. success and stability of the business. The Globalisation, and the challenges and materiality study with detailed analysis of opportunities this presents, is one of the the financial sector’s main reputational risks issues looked at in depth. determines which issues are addressed. These appear to be those that have impact on the ‘confidence of society in the bank’ leading DAIMLER the reader to question whether the integration of CR into the business is really apparent? Daimler is at a relatively early stage of Given the current climate in the industry, 30 FT EURO RANK AUTOMOBILES incorporating sustainability into its business, it is fair to say responsible financial advice with a sustainability committee established to customers is one of the key issues the in July this year. It is currently working on bank needs to address, however the bias of embedding sustainability as part of business stakeholder engagement towards customers, strategy rather than a separate consideration. and the frequent mention of reputational risk Although the communications look very results in a lack of communication on its impressive with a magazine, interactive wider responsibilities. report and downloadable report all entitled ‘360 Degrees’, the issues are unfortunately relatively introspective, and the analysis BNP PARIBAS isn’t quite as comprehensive as 360 degrees would suggest. It would be interesting to 25 FT EURO RANK It seems to be a trend within the banking BANKS understand how Daimler has analysed its sector that a large part of the CR report is material issues and whether this process focused on the structure of the business units involved its stakeholders. Daimler would also with BNP Paribas at the forefront. The reader benefit from making communications more finds little on the approach to sustainable open and transparent with information easier development and issue areas until page 76 to find as well as being more comprehensive. of a 211-page report! Although the group’s It’s a good start, but Daimler has a long way responsibilities are identified as integral to go to be in the same league as Volkswagen. and ‘rooted in its founding values’, there is unfortunately little if any understanding of the key impact areas. Communications with HSBC stakeholders are merely listed and there is no clarity on reasons to engage. In fairness HSBC has a sustainability strategy, which it appears to be a work in progress and the 4 FT EURO RANK BANKS recognises that its continued financial bank does have a committee responsible for success depends on the way it manages identifying the challenges for the following year and addresses issues material to the – let’s hope that big issues will be part of this! business. It also shows an understanding that these ‘non-financial’ issues need to be integrated into the way HSBC does business. Following various initiatives to engage with stakeholders, climate change, forestry, and sustainable lending and finance are the issues identified as key impact areas. A number of ‘key sustainable issues’ are identified and broken down by customer group. This is SALTERBAXTER DIRECTIONS 2008
  3. 3. 26/27 INTESA SANPAOLO BBVA 26 FT EURO RANK Communications are focused on the formation 33 FT EURO RANK CR is discussed on equal par with corporate BANKS BANKS of the new group. Although working towards reputation so at first it’s a little dubious CR 2.0 status by tackling both housekeeping as to whether the business will show any and thorny issues, the structure of issues is understanding of moving away from compliance a little unclear. The current report is split into to tackling the hardest hitting issues. But an economic report and social report – the encouragingly, BBVA communicates a really social section looks at all stakeholders and good understanding of stakeholder expectations the banks’ responsibilities, and the economic and the issues that are prioritised. The bank section sheds light on the banks’ value adding also shows good progress on integrating CR capacity. And online you will find information into the fabric of the business with a strategy on environmental objectives. Perhaps a simple and business model demonstrating that all explanation of this could be the challenges in group activities are aimed at ‘building a future’. bringing together the focus of the two major Although the web structure is based on the banks and communicating it as one? A section ‘major issues’ affecting the business, as identifying the issues that are most important identified by stakeholder expectations, there to stakeholders is developed to discuss is no clear rationale for why they are prioritised how the business rationalises the way it in that order. The issues also appear to be tackles them with a section on ‘improvement general housekeeping issues with ‘customer objectives’. If volume is anything to go by then focus’ and ‘financial inclusion’ being the first clients and customers are the main focus. The two impact areas identified. need to assist customers in the investment sector and the protection of savings is identified as a top priority. Although such SBERBANK OF RUSSIA issues are identified, they are not really discussed in depth. 42 FT EURO RANK With minimal communications on CR issues, BANKS the bank is primarily committed to domestic and international programmes to further UNICREDITO ITALIANO develop social welfare. Reporting as part of the annual report only, there is no indication 27 FT EURO RANK Another example from the banking sector of the business tackling any hard-hitting BANKS that has a clear focus on communicating issues; in fact even the housekeeping is a value added, ‘expressing in monetary terms bare minimum. the relationship between the business and the socio-economic system with which it interacts’. A little unsure of its understanding ROYAL BANK OF SCOTLAND of reasons for tackling certain issues, the group makes statements such as: ‘during 45 FT EURO RANK The current CR report is titled ‘10 issues that 2007, the media and the public focused BANKS matter most’, with a website following the their attention on global climate change and same structure. CR is central to the way the UniCredit Group stepped forward to address business is managed. This is reflected by the this vital issue’. The group appears to be identification of both the areas where they working on a process where it can define can have the most impact, and the issues priority areas through internal analysis of that can make the most difference to RBS. its impact on stakeholders. For the 2007 Senior management also appear to have a reporting period, focus was placed on clear understanding of the risks these issues ‘The Art Experience’ described as a ‘formative present. There is clear rationale behind how year for the bank’s international activities in these hard to handle issues are prioritised, culture’ – this is part of its aim to ensure all emphasising that RBS is clearly at level CR 2.0. employees understand what is required for From large-scale quantitative opinion surveys long-term sustainable growth, including the to small, local sessions on issues, the bank issues most material to stakeholders. has a sound stakeholder dialogue process in place which reassures that this is not a passing trend but a way of doing business. Watch this space next year though. SALTERBAXTER DIRECTIONS 2008
  4. 4. ANALYSIS BY SECTOR AND FT EURO RANKING SIEMENS NESTLÉ » CONTINUED making the point that its sustainability work is more than housekeeping, but there isn’t CR is part and parcel of Siemens’ core values always a black and white answer to the issues 22 FT EURO RANK ELECTRONICS and driven from the top. Communications they are tackling. There is definitely room & EqUIPMENT appear to be promising, stating high aims for more but it will be fascinating to see of being the ‘Best-in-Class’ in CR – although how Nestlé progress this as it’s looking like unfortunately there is no real explanation the beginnings of a real shift from standard of how or what this actually means. There CR 1.0 to embedded and challenging CR 2.0. is evidence of understanding stakeholder expectations – but little evidence of engaging with them in any dialogue. Compliance is UNILEVER identified as its ‘number one priority’, followed by climate protection and education. Siemens 20 FT EURO RANK Unilever does describe sustainability as an FOOd & insist that managers and employees must CONSUMER GOOdS integral part of the way it does business and comply with all regulations. Could this be a crucial factor to growth, and indeed to even identified as a priority purely as a result of existing as a business. The general sense of recent media attention, or an example of a sustainability being embedded in the business business tackling a hard to handle issue? is quite strong. And through the supply chain In their own words this ‘program should not and the sustainable agriculture initiatives be understood merely as a response to past there are some really difficult issues being actions, but is aimed at achieving long-term tackled – water, biofuels and palm oil to name changes in the thinking and behavior’ a few. However what is missing is the context of Siemens managers and employees. – why they are tough issues, how the agendas Responding to media attention or tackling a change and how Unilever navigates a path thorny issue – this is a difficult one to judge! through that. Otherwise it feels more like a list of initiatives and achievements rather than a dialogue with stakeholders about how the ABB business is sustainable. This is a tough one. Based on actual activity in the business The language used to define CR and we know that Unilever is at CR 2.0. But its 50 FT EURO RANK ELECTRONICS sustainability makes it difficult to understand communications don’t reflect this – so for & EqUIPMENT what issues are a priority for ABB. Sustainability now it has to be CR 1.0. is referred to as balancing economic success, environmental stewardship and social progress to benefit all stakeholders. With little mention L’ORÉAL of strategy, it’s not clear if sustainability or CR is integrated into the business at all, even 35 FT EURO RANK There is some level of articulation of CR at FOOd & though CR is identified as one of seven priority CONSUMER GOOdS a strategy level but any sense of integration areas that form the issues of focus. Priority or embedded CR is lost when you find the areas are also fragmented. Attention on the actual approach relies on the housekeeping high impact issue of climate change, has no of environmental and social impacts of the clear rationale behind it, and gets lost amongst operations of the business. So the big issues the other priorities which are more general in this sector don’t really feature – things like – like CR itself! the perception of beauty, teenage anorexia and the choice of models. L’Oréal do feature diversity as a significant issue and rightly so, NESTLÉ but the context of why it matters so much in this sector and why they should be leaders Nestlé’s ‘Creating Shared Value’ approach isn’t well explained – apart from mentioning 3 FT EURO RANK FOOd & for 2008 gives a good insight into how it is that there isn’t just one type of beauty in the CONSUMER GOOdS integrating sustainability into the business world. L’Oréal could go a lot further with its – in short how sustainability brings value to sustainability approach, go beyond monitoring shareholders and stakeholders, and is not just operational impacts and really tackle societal a bolt-on to operations. By virtue of its supply pressures in the sector. Especially given that chain, Nestlé is tackling some significant it has The Body Shop to learn from! issues around sustainable agriculture, energy and biofuels, water supplies and nutrition. Interestingly, it is putting those tough issues into a global context in its report, discussing the complexities around the issues before describing its own actions. So Nestlé is developing an approach that both embeds sustainability into the business while also SALTERBAXTER DIRECTIONS 2008
  5. 5. 28/29 EDF SUEz 9 FT EURO RANK EDF isn’t articulating the pressing conflicts 31 FT EURO RANK Suez is upfront about five big and complex GAS, WATER & GAS, WATER & MULTIUTILITIES in the energy sector in the same way as Suez MULTIUTILITIES issues that the energy sector is facing, and E.ON are, but it is looking at big issues. with a monster document of pages upon It references its activities in stakeholder pages of box-ticking information. Other engagement and discusses how the sector communications primarily consist of needs to develop over the next few years. uninspiring web pages. Suez is on the However, housekeeping issues dominate journey, however it needs to work a lot more the report and the articulation of big global on its communications approach. The initial issues that are full of complexities is lacking. pages of the report are interesting though and Although tackling such issues as fuel poverty put Suez amongst those energy companies is important, there is more EDF could be battling with the complexities of its sector doing. EDF does demonstrate in its business and how to balance conflicting economic, strategy and values that sustainability is an environmental and energy policy pressures. integrated part of the business. So a lot of Interestingly, stakeholder engagement isn’t very positive sustainability work going on presented as much more than standard but perhaps without the complexity and activity. Perhaps more engagement would context that others in the sector are clearly push it along that journey a bit faster. thinking about. IBERDROLA E.ON 36 FT EURO RANK Iberdrola has a lot of sustainability work GAS, WATER & 14 FT EURO RANK This sector is beset by controversy and MULTIUTILITIES happening on the ground and is also showing GAS, WATER & MULTIUTILITIES E.ON hits this head on – it confronts the signs of integrating it into the business strategy, conflicting objectives of energy supply, price with commitments to sustainable development and environment, the negative public and and renewable energy. But the communications stakeholder opinion it receives and the do not show signs of the business wrestling technical complexities of the various types with the really tough issues in sustainability. of energy the sector provides. However, And the report is such a long document although the report appears to be hard hitting that it stops communicating with the reader it doesn't actually get to grips with the issues and just discloses activity. There is factual as we had hoped. Stakeholder engagement information about energy policy in Europe is mentioned quite often but it comes across but the connections between that and the more as the company justifying its actions, company’s views gets lost. rather than giving much exposure to the views of the stakeholders themselves. The bold communications approach of talking about RWE the paradoxes in the energy sector is confined to the report – it would be great to see a more 44 FT EURO RANK RWE doesn’t seem to have tackled its sector- integrated set of communications in the same GAS, WATER & MULTIUTILITIES specific issues in the way E.ON and Suez vein to engage a broader audience. E.ON is have – it’s still quite a predictable approach, still at CR 1.0 but with the relevant issues focused on identifying straightforward material being raised, we are hopeful to see them impacts and not getting across its thoughts moving to CR 2.0 in the near future. on the big issues. In fact the company openly declares it is struggling to keep pace with society’s demands and the loss of confidence in energy suppliers. No doubt there is plenty of work going into managing operational impacts but in comparison to others and in light of what this research is looking into, RWE rather fades into the background. SALTERBAXTER DIRECTIONS 2008
  6. 6. ANALYSIS BY SECTOR AND FT EURO RANKING ENEL AxA 47 FT EURO RANK ENEL communicates sustainability in a few 39 FT EURO RANK AXA’s communications really focus on INSURANCE GAS, WATER & ways – in a lengthy report, online and in embedding sustainable development into the MULTIUTILITIES a stakeholder report. In fact, stakeholder business – obviously that is very important and communications are extensive and there is an the report covers a lot of information about interesting tool to gather stakeholder feedback product developments, tackling environmental that is then disclosed in the report. But ENEL protection and health for example. However, is operating a housekeeping approach, this research is looking for evidence of going however hard to manage some of the impacts beyond that. And there is some – recognising are. It does recognise the challenge of energy the difficulties of the economic climate and supply, price and environment and how changes in demographics for the insurance difficult balancing those demands is – but it industry, recognising that financial protection is a reference not a strategy. So ENEL is not and sustainable development go hand in hand. in the same league as some in its peer group. But that recognition is not translated into views. There is little evidence of stakeholder engagement and with a long report and ALLIANz straightforward web pages, communications are generally not very engaging either. So 28 FT EURO RANK Allianz addresses materiality and stakeholder some interesting work but to reach CR 2.0 INSURANCE engagement in a clear and logical way. Plus there is more to do. it integrates the issues it has identified into products and services, displaying an embedded approach – key topics are the impacts climate GENERALI change and demographic change have on the insurance sector. And these are of course 49 FT EURO RANK Generali very much takes the housekeeping INSURANCE key concerns. There is an underlying sense approach, although granted with a strong of the difficulty in tackling these issues and focus on meeting stakeholders’ needs. The the lack of a black and white answer, but report is lengthy and it is hard to get a sense no real discussion about the complexities or of how issues are prioritised, materiality or how Allianz decides on its approach. It feels even the impact the business approach is like Allianz is more at the CR 1.0 end of the having. Compared to the others in the sector, scale than CR 2.0 – but there is definitely it is very underwhelming. material to work with. ING 32 FT EURO RANK ING engages with stakeholders, considers INSURANCE a variety of issues, and has evidence of sustainability being incorporated into business strategy and embedded into products and services. It recognises the importance of engaging employees. All positive, but unfortunately this is only evidence of being stationary at CR 1.0. There are some really big challenges in sustainable finance and investment that aren’t easily solved and it looks like ING isn’t ready to get out there and talk about them. So there is an opportunity for this business, if it is ready to take it. SALTERBAXTER DIRECTIONS 2008
  7. 7. 30/31 ARCELORMITTAL ANGLO AMERICAN 16 FT EURO RANK As a new organisation, ArcelorMittal is at the 34 FT EURO RANK Safety and health are major issues for the MINING MINING beginning of its CR communications and organisation as targets for zero harm aren’t approach. It is the only mining company to opt being met. However, the company is clearly for a CR rather than sustainability report. With aiming to lead this sector by aiming for the recent merger of Arcelor and Mittal Steel best practice policies on the big issues it in June 2006, management appear to have is tackling. Although sustainability is clearly made CR a priority for the new business to embedded in the company strategy and it create a strategy and commitments befitting does engage with stakeholders, information a world leader. In terms of its approach, this is missing on how the issues have been is an example of strategic best practice with established and prioritised. If Anglo American excellent communications on stakeholder can demonstrate this, it will shift to CR 2.0. engagement and the establishment of benchmarks to measure against in future. 12 commitments have been established xSTRATA through its materiality assessment so it remains to be seen whether these will be 43 FT EURO RANK From HIV and Aids to biodiversity, community tackled with the appropriate level of depth. MINING impact, water and air emissions, Xstrata has It’s not made the shift to CR 2.0 yet, but addressed a range of material issues in its we have high hopes for this company on the communications. Reporting is well documented basis of its strategy – and everything appears with good disclosure, score cards and targets to be moving quickly in the right direction. on all of their issues. It has engaged with its stakeholders in order to form the material issues and prioritise these accordingly. RIO TINTO Above all there is a high level of transparency throughout the report, information is easy 18 FT EURO RANK Rio Tinto reports on its sustainable to find and simple to understand. However, MINING development activities in the form of a review it could be argued that these material issues contained within the annual report. Although should be part of doing ‘business as usual’. there is much reference to the materiality Xstrata has the right process in place to process, key issues or priorities are difficult establish these issues but we’re keen to see to establish among all the topics covered on them developed in future to consider wider both the corporate website and printed report. impacts. As Xstrata currently does not report Strategy is described in detail but there is little on the impact of its supply chain we would information on the results. Rio Tinto admits expect to see this made an immediate priority. it does not report on all of its material issues – claiming it will publicly communicate on them if enough external interest is received. BHP BILLITON Communications would benefit from being more transparent with regards to Rio Tinto’s 48 FT EURO RANK BHP Billiton has created logical and easy operations. For example, providing the actual MINING to follow communications on sustainability criteria used to determine whether a site on both its website and report. Information is suitable for development rather than is accessible, provided in detail and also describing a process that is used would be summarised – important for readers looking more meaningful. for an overview. Stakeholders are clearly identified and have been engaged with to establish key issues. Of particular interest is the section entitled ‘what others say’. BHP Billiton invited sustainability peers to provide their perspectives on its key issues and level of response. It is likely we will see this style of communication more often in future as it supports trust and transparency. SALTERBAXTER DIRECTIONS 2008
  8. 8. ANALYSIS BY SECTOR AND FT EURO RANKING GAzPROM BP 1 FT EURO RANK Gazprom produces an environmental report 5 FT EURO RANK BP’s materiality matrix is very thorough and OIL & GAS OIL & GAS – not that surprising given the nature of the emphasises the issues that help deliver the business and the huge impact it has on the business strategy. Those that ‘have attracted environment. Although saying that, there is a high level of public exposure and awareness’ no evidence of an understanding of how CR are also considered very important for fits into the fabric of the business or the real inclusion in the current report. However, BP’s impact of its operations. Little evidence of communications on CR are confusing as it understanding of the complexity of the issues is difficult to distinguish between what is that need to be addressed was found. It goes identified as housekeeping issues and those without saying that social issues wouldn’t be felt to be the hard to handle issues. There is addressed in this type of report – but upon no doubt that BP has a clear understanding reviewing the website nothing could be found of its most material issues – however, due there either. Various environmental issues to the structure of the communications the are described but there is little evidence in most significant are not brought to light. its communications of how they are either prioritised or linked to the business strategy. There is little reference to stakeholders of the TOTAL business and no dialogue appears to be in place to identify the thorny issues that this 6 FT EURO RANK It is quite difficult to work through how Total business should be paying attention to. OIL & GAS defines and ranks the issues most material to the business. Going by the structure of the communications there appear to be many. ROYAL DUTCH SHELL Perhaps the focus on biofuels, on the landing page of the CR section where the reader finds 2 FT EURO RANK Communications are well structured and a special publication on work in the area, is OIL & GAS the user gets a clear sense of the prioritised an indication of the importance placed on the issues. Top line information on an issue issue. With only generalised statements, the within the report is further backed by detailed importance of each issue is not really addressed. content online. Sustainable development is It’s not clear how Total defines CR although it identified as the ‘right thing to do’, good for the does communicate an understanding of the business and helps ‘meet the world’s growing need to secure the longer-term future of energy, need for energy in economically, socially and and hence the existence of the business, environmentally responsible ways’. Issues of explaining the need to focus on biomass and focus are those that will enable the business solar energy processes, along with evidence to create value and reduce operational and of investment areas. All in all the reader is left financial risk. It sees no trade-off between unclear as to what the business is tackling being profitable and responsible, understanding and why. the need to identify, assess and manage impact on stakeholders. Shell goes through a process of opening itself up to an external assessment to judge whether it selected the most important topics to report on this year, how well these hard-hitting issues were dealt with and how it responded to stakeholder interest. Shell is clearly on track, from use of an ‘auditable content selection process’, to tackling the hardest issues hitting the industry. Communications effectively prioritise the issues that are most material to the company, and of greatest interest to Shell’s stakeholders, in addition to covering one of the most significant topics facing our world – climate change. SALTERBAXTER DIRECTIONS 2008
  9. 9. 32/33 ENI STATOILHYDRO » CONTINUED as a serious challenge for the industry – and one which also ‘represents new business 2007 is identified as an important year for opportunities’. But StatoilHydro does appear 11 FT EURO RANK OIL & GAS ENI as sustainability has become an integral to see the real value and reason for engaging part of corporate processes. Importance with stakeholders with a section of the reporting is placed on qualifying for indices such as dedicated to the initiatives in place. Although DJSI and FTSE4Good. Great use of interactive tackling some thorny issues, it doesn’t explain features online allow ENI to explain its much more than the business benefits of ‘conceptual model of sustainability’ where doing so. Clarity in its communications would social development and environmental help this business make the shift to CR 2.0. protection are part of the long-term benefits that it can provide to the communities in which it operates. ENI communicates how BG GROUP being responsible can contribute to the efficient management of an organisation – 37 FT EURO RANK For BG Group, CR stands for its core approach OIL & GAS however it’s unclear whether CR is identified to business and how it integrates business as an add-on or part of the fabric of the principles into practice. Communications clearly business. It can only be assumed that the show how CR is integrated into business importance placed on each identified issue processes, discussing stakeholder engagement is reflected by the order in which they appear programmes and value through to corporate in communications. ENI may well be tackling governance. To determine which issues to hard-hitting issues such as climate change focus and report on, BG Group undertakes a but unfortunately it is not clear to the reader thorough risk and impact assessment. Due to why it is doing so. the nature of the business it is no surprise that climate change is defined as the number one priority and one that the group identifies it can ROSNEFT actively tackle. Although hard to handle issues are a priority for the group, unfortunately Sustainable development appears under it does not distinguish the importance 23 FT EURO RANK OIL & GAS the ‘Social Issues’ tab of Rosneft’s website between these, and those that are general navigation, emphasising the types of issues housekeeping, as through the materiality prioritised. The CR strategy and initiatives assessment, it also considers ‘working to high (explained in a very long report!) are more standards’ and ‘stakeholder engagement’ as based on donations and charitable giving than key issues. Taking good steps in the direction specific long-term initiatives or programmes. of CR 2.0 but still at 1.0. Given the nature of the business the reader would expect more environmental issues to be considered or communicated as important. LUKOIL However, it is fair to say the issues tackled do match up to what they consider CR to 41 FT EURO RANK The sustainable development report is found OIL & GAS be. The business strives ‘to achieve not only within the social section of Lukoil’s very high production and financial results, but unstructured website. Placed within the ‘About also to make a considerable contribution in Us’ section, Lukoil defines CR as supporting development and prosperity of the country long-term economic growth, social stability, and improvement of living conditions of its prosperity and progress in the regions where citizens’. They also consider stakeholders to it operates. Its issues of focus are also very be shareholders, company employees and broad with only ‘social and environmental’ their families, population of the regions of issues identified. Aside from priority areas presence, and society as a whole. identified as health protection and safety of personnel and communities in the areas where Lukoil operates, there is little evidence STATOILHYDRO of the business tackling the hard issues facing the sector. For now this company is stationary Although StatoilHydro appears to be primarily at CR 1.0 and needs to engage with its 24 FT EURO RANK OIL & GAS driven by the need to create shareholder value, stakeholders to appreciate what is expected of the group does clearly communicate the need the business and where its responsibilities lie. to consider CR as a factor in helping it remain competitive and efficient. Unfortunately, reasons for focus on particular issues, aside from the direct business benefits rather than the responsible thing to do, couldn’t be found. Climate change, the first priority, is identified SALTERBAXTER DIRECTIONS 2008
  10. 10. ANALYSIS BY SECTOR AND FT EURO RANKING ROCHE SANOFI-AVENTIS 7 FT EURO RANK Roche is aware of the importance of stakeholder 19 FT EURO RANK Sanofi-Aventis has great communications on PHARMACEUTICALS engagement and it is an integral part of its PHARMACEUTICALS its sustainability issues which give a really business strategy. However, there appears to positive impression. Unfortunately, an in-depth be a gap between the company strategy and read shows this work is at a relatively early its approach to addressing material issues stage and much more needs to be done just within its communications. Strategy has been to get up to speed tackling the issues that formulated without evidence, or disclosure, of matter, let alone going beyond them. A thorough considering external stakeholders’ expectations. materiality analysis has been performed, Material issues were established at the start however Sanofi-Aventis has not managed to of the year and Roche has begun collecting tackle all these issues, of which the end of information on each. Although ‘relationship with product life cycle and influence on law-makers stakeholders’ is considered a material issue, are two examples. which we would argue should be part of doing business as usual. Next year, we hope to see Roche conducting its materiality assessment BASF with all its stakeholder groups and taking the next step towards CR 2.0. 46 FT EURO RANK For the first time, BASF has combined its PHARMACEUTICALS financial and sustainability report into one publication. The result is evidence of a coherent, NOVARTIS integrated strategy that sits within the business principles. Within its communications, BASF 12 FT EURO RANK It was difficult to find all CR information for has identified its key material issues and has PHARMACEUTICALS Novartis as the communications are a little produced information on these through the fragmented. There is a corporate citizenship report, the website and short videos as well. section contained within the annual report, Stakeholders’ considerations have been a separate corporate citizenship review, a considered with regular engagement evident. microsite, policies and guideline documents. The work investigating demographic change Further information is available on specific is well thought out and relevant. BASF is topics as brochures and case studies, and considering the much wider reaching issues there is also a separate performance report. and has a strong sustainability strategy to The result is confusion, much repetition and ensure its future. difficulties in finding complete information. Although there is evidence of stakeholder engagement and identification of material VODAFONE issues, coverage seems lightweight and standard for the sector. So the next step for 8 FT EURO RANK Vodafone has taken a clear, transparent Novartis is to streamline all this information, TELECOMS & approach to CR communications. All TECHNOLOGy make the content easier to find, and delve communications have been designed to into these issues. be easy to understand and easy to follow. The strategy too, has been simplified with the business as a whole applying ‘One Strategy’ GLAxOSMITHKLINE as opposed to different techniques in different markets. Vodafone applies a simple strap line 17 FT EURO RANK Communications show evidence of material to its material issues ‘we said, we have, we PHARMACEUTICALS issues being tackled head on. GSK examines will’. This simple breakdown means that its its contribution towards global health, ethical progress is easy to understand and can be conduct, and access to medicines. However, tracked over the years. This open and the real strength is that GSK looks in-depth transparent method of communication really at each issue and discloses far more than its works for Vodafone and is the highlight of all competitors. It has transparent communications its CR communications. across all its issues. A prime example of this is the voluntary disclosure of GSK’s political donations and the reasons behind them. GSK’s latest CR report entitled ‘Answering the questions that matter’ also does exactly what its title proposes. It is obvious that GSK is working on building trust in the organisation through this transparent disclosure. The result is incredibly engaging communications that really do answer the questions that matter. SALTERBAXTER DIRECTIONS 2008
  11. 11. 34/35 TELEFÓNICA FRANCE TÉLÉCOM 10 FT EURO RANK Telefónica approaches a wide range of 29 FT EURO RANK France Télécom is the company behind the TELECOMS & TECHNOLOGy issues relating to the organisation. Activities TELECOMS & TECHNOLOGy brand ‘Orange’. For this reason, expectations are clearly not only for the financial benefit of were high for France Télécom’s CR the company. Telefónica is actually trying to communications. Although its work ticks promote responsible progress. Issues such as all the boxes, the messages are a little flat. ‘the digital divide, accessibility, use of ICT and Stakeholders are clearly being engaged with child protection’ are all explained clearly with throughout the business and are an integral transparent information on performance and part of company strategy. The establishment targets. This responsible approach is clearly of its material issues is thorough and considers embedded in all aspects of the company and all stakeholders, however the outcomes are its communications. The result is easy to introspective issues rather than the further understand, relevant and engaging. A great reaching impacts we were looking for. The example of a company that has taken the report would also benefit from disclosure on steps to CR 2.0. feedback and priorities for the organisation. NOKIA DEUTSCHE TELEKOM 15 FT EURO RANK At first glance the communications on the 40 FT EURO RANK Deutsche Telekom, the name behind TELECOMS & TECHNOLOGy website appear well laid out, simple to find, TELECOMS & TECHNOLOGy T-Mobile, is currently reviewing its CR practice with an easy to navigate online report. Once and realigning responsibilities. As a result, you scratch the surface of the content, you it has published ‘Facts & Figures’ which find a wealth of information hidden beneath is an interim report for 2007. Deutsche the surface. Nokia is doing some great work Telekom has a long way to go in terms of its here but could do with communicating these CR communications, although it has been activities in a more obvious way. Its accessibility reporting on these issues since 1996. micro site is a prime example of this: great Hopefully, this is what Deutsche Telekom is content but hard to find. Engagement with working on and we can hope to see the full stakeholders is referenced throughout its report next year. There is a fair amount of communications and key issues are thorough work to be developed if it wishes to be in the and relevant as a result. Although Nokia has same league as its competitors. However established its material issues, these are we are hopeful as the organisation intends mainly issues that we would expect to see as to ‘develop a CR strategy, which takes into doing business as usual – considering the account the needs of society, the market environment, supply chain and human rights. and our stakeholders in equal measure’. Accessibility as its priority goes beyond this and is considered in depth. Is the business at the next stage? Almost, but not just yet. BRITISH AMERICAN TOBACCO 38 FT EURO RANK The most interesting part of BAT’s TOBACCO communications is a Q&A section of the recent report where the CEO addresses the question that everyone wants answers to. ‘How can a tobacco company be sustainable and is CR used as a PR spin?’ BAT is open for dialogue with all of its stakeholders to debate the highly controversial issues it needs to be addressing and there is evidence that it is. Working with various scientific bodies and health communities, it is working towards developing and introducing potentially reduced-risk products, identified as its number one priority. Its sustainability agenda also addresses the key issues of concern around business operations, as well as the issues related to the nature of the products. BAT has no problem addressing general housekeeping issues, although the thorny issues are definitely much harder to handle for a business of this kind, so it warrants the mark of CR 2.0. SALTERBAXTER DIRECTIONS 2008