currents of change: the kpmg survey of corporate responsibility reporting 2015

Currentsof changeThe KPMG Survey of Corporate Responsibility Reporting 2015

1© 2015 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.

KPMG first produced its Survey of Corporate Responsibility Reporting in 1993. The 9th (2015) edition analyses reporting from 4,500 companies in 45 countries as well as taking a deep-dive look at reporting from the world’s 250 largest companies


CR reporting becomes the norm, driven by regulationReporting on corporate responsibility is now standard business practice around the world. Around ¾ of companies now report on corporate responsibility compared with only 12 percent back in 1993.

CR reporting stabilizes at a high level

Base: N100 companiesSource: KPMG Survey of Corporate Responsibility Reporting 2015

12% 18%

1993 1996 1999 2002 2005 2008 2011 2013 2015

24% 28%41%

53%64% 71% 73%


It is also becoming standard practice to include corporate responsibility data in the annual reports. A majority of the 4,500 companies analysed do this.


Rate of inclusion in annual reports rises

4%

20%

51%

56%

2008 2011 2013 2015



There has been rapid growth in corporate responsibility in Asia Pacific. In 2011 less than half of companies in this region reported. In 2015, 79 percent do: a higher rate than other regions.

Base: 4,500 companiesSource: KPMG Survey of Corporate Responsibility Reporting 2015

Asia Pacific raises its game

77% 74%

Americas


79%

Europe Asia Pacific


Emerging economies have the highest corporate responsibility reporting rates in the world. In many cases this is driven by mandatory reporting regulation from governments or stock exchanges.

Base: 4,500 companies N100 companiesSource: KPMG Survey of Corporate Responsibility Reporting 2015

Countries with the highest rate of CR in annual reports


India

South Africa

Indonesia

Malaysia

100%99%

99%99%


Uptake of integrated reporting is slowOnly 11 percent of the reports analysed in 2015 state that they are integrated compared with 10 percent in the 2011 Survey. The top countries for integrated reports are as follows.

Actual number of integrated reports: top countries


91

27 27

21

13

South Africa Netherlands Spain Japan Sweden


The Survey also looks at the quality of reporting on carbon from the world’s 250 largest companies. This is a topical issue because of the 21st annual UN Climate Talks in Paris 30 November – 11 December 2015.



The Survey analysed how these 250 companies report on their carbon emissions in their annual financial and corporate responsibility reporting



Our conclusion:“Key information is missing. It is almost impossible to compare one company’s carbon performance with another’s. This will have to change.”

Wim BartelsKPMG’s Global Head of Sustainability Reporting and Assurance



Most G250 companies report on carbon4 out of 5 of the world’s largest companies do publish information on their carbon emissions. German and British companies are most likely to do so.

Rate of reporting on carbon emissions

Base: G250 companiesSource: KPMG Survey of Corporate Responsibility Reporting 2015

79%

56%

Germany US China

82%89%

100%100%

JapanFranceUKGlobal average

82%


…. but quality varies widely. Transport & leisure companies score most highly, and oil & gas companies score lowest.

Base: G250 companies that report on carbonSource: KPMG Survey of Corporate Responsibility Reporting 2015


HighLow


1 in 5 large companies in high carbon sectors such as chemicals, mining and industrials does not report on its carbon emissions



G250 – How countries compareAround half (47 percent) of the world’s largest companies don’t publish any targets to reduce their carbon. German companies are the most likely to do so, and Chinese companies the least likely.

Publishing of carbon targets.


Germany

US

China

Japan

France

UK

Global average53%

94%

83%

63%

59%

54%

3%


G250 – How countries compareWhile most companies are reporting on carbon emissions from their own operations, very few report on emissions from the use of their products and services

Reporting on downstream emissions


Japan 17 %

France 6 %

UK 0%

China 0%

US 7%

Germany 11%

Global average 7%


G250 – How countries compare… and only half of reporting companies talk about the benefits that cutting carbon can bring to the business. German companies are the most likely to do this follows by companies in the UK

Reporting on benefits of cutting carbon


Germany 94%

Japan 61%

China 23%

US 43%

France 71%

UK 83%

Global average 51 %


“ There is a need for improvement in the way many companies report on carbon. Clear global guidelines could help to address inconsistent approached”

Adrian KingKPMG’s Global Head of Sustainability Services



KPMG member firms can help your organization to improve its reporting on corporate responsibility and carbon emissions


To find out more, download the report from www.kpmg.com/crreporting

Or contact us at:[email protected]

currents of change: the kpmg survey of corporate responsibility reporting 2015

Environment