Stepping Forward
Corporate Sustainability Reporting
in Canada
Stratos Inc. has released
the first in-depth examination of corporate sustainability reporting practices
in Canada. This report assesses the quality and coverage of sustainability
information that companies provide to the public. It does not assess corporate
performance, but reviews how companies report on their sustainability
practices.
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Leading
the way
Fifty-seven companies in
nine sectors prepare environmental, social or sustainability reports in Canada
– but the vast majority of companies do not. Twenty-six percent of Canada’s
100 largest companies report, placing Canada in the middle of the pack relative
to Europe and the U.S.
Sustainability
reporting
Reports
are evolving from single-issue coverage toward broader sustainability reporting
that includes environmental, social and economic aspects of corporate
performance.
Quality
of corporate reports varies widely
The
issues covered and quality of information provided varies substantially across
companies. Based on criteria that reflect emerging international standards for
reporting, Canadian companies report well on environmental discharges, community
philanthropy and health and safety. They are weaker in reporting on social
performance and economic contributions beyond the corporate bottom line.
Best
practices
Taken
together, the reports provide many examples of strong reporting on a range of
issues. These reports provide opportunities for existing reporters to improve
and help for non-reporting companies to get started.
Integrated
approach
To
further improve, reports need to move beyond “stovepipe” descriptions of
environmental, social and economic performance to identify linkages across these
factors, and communicate a vision of how they contribute to the long-term
success of the company.
Performance
information is key
The best reports link corporate
commitments to quantitative evidence of performance. This information is weak in
many reports that fail to present measurable targets and to track performance
trends over time.
Earning
credibility
Good reports are
balanced, covering not only improvements in performance but also difficult
issues encountered during the reporting period and beyond. Many reports
side-step tough issues and focus only on good news, reducing their credibility.
Building
business value through public accountability
Reporting
companies are recognizing the benefits of sustainability reporting - in terms of
investor and public confidence, improved internal operations, and stronger
external relationships with stakeholders. The next step is for them to move
beyond reporting on regulated risks to a more outward looking focus on business
challenges and opportunities.
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