Directions 4 98% Fluff Free

Trends in CSR reporting 2003-2004A joint report by salterbaxter and Context

04

social

environmenta contex

Directions No

01Introduction 02

Pass the celeryby Mark Weintraub

04Is your head in the sand?

by Francis Sullivan

06The glass is definitely half full

by Context

08Operating and FinancialReview – Worth the wait?

by salterbaxter

10The fluffometer

by Context and salterbaxter

12Methodology

13Analysis overview

16US top 50 analysis

18Euro top 50 analysis

20UK Top 250 sector analysis

31Beyond Reporting

32About us

What’s inside

01

Welcome to the new sobriety in reporting non-financialperformance. The corporate lexicon of homilies, generalitiesand soft assurances that characterises much CSR reporting – fluff – is on its way out. This trend is beingdriven by sceptical audiences and tightening regulationsuch as Sarbanes-Oxley and the UK’s Operating andFinancial Review (OFR).

A less fluffy future is good news because the emphasis isstrongly on reporting, not spin. This is what the purists havealways wanted – quasi-statutory documents that talk about a company’s non-financials in a thoroughly grown-up way.

The unloved Global Reporting Initiative (GRI) has alwayscalled for sobriety (at excruciating length and detail). Does this mean boom time for the beleaguered GRI?

Unlikely. And that’s simply because of market demand forshort, pertinent reports that allow you to take a company’spulse quickly. There is little call for the GRI bible approach. We predict more factual, shorter reports (Mark Weintraub ofShell shows how on page 02), although we know it will taketime for the obese to slim down.

But as reporting sharpens up, companies are beginning to see a greater need to communicate their non-financialperformance in other ways, to different audiences. To gobeyond reporting.

Fluff-free doesn’t mean fun-free. Good news, progress,innovation and achievement will still have their place incorporate communication. Leave your shears here and head for page 31 to find out how to go Beyond Reporting.

Peter Knight, [email protected]

Nigel Salter, [email protected]

Simon Propper, [email protected]

Introduction Sharpen those shears! It’s time to cut the fluff in CSR reporting.

02

Like many people, I’m concerned about theproblem of obesity. But in my professional life,the expanding girth I’m worried about is incellulose, not cellulite. Corporate sustainabilityreports are growing fatter at alarming rates.Shelves (and trees) are falling. Costs arerising. Looming above it all is the question:who actually reads these 100+ page epics?

I blame no one but ourselves – we who produceand benchmark and provide guidelines forcorporate sustainability reports. The emphasisis remorselessly on breadth over depth, inclusiveness over relevance, and comprehen-siveness over material importance. Not sureabout (or not willing to take a view on? Or not

actually having?) the information that reallymatters for judging our performance, we simply throw everything we’ve got in the fridgeinto the pot.

We are also unclear about who we are writing these reports for. Non-governmentalorganisations (NGOs) and single-issuecampaigners? The socially responsible investorcommunity? Mainstream investors? Staff? Thegeneral public? Judging from most reports I see,the answer seems to be everyone. And in tryingto please everyone, we satisfy no one. There is inevitably too much specialist detail andarcane debate for the general reader about themechanics of reporting or internal processes

and systems. There’s always too little about our actual performance and what the peopleimpacted by our activities really think of us.

A diet is needed. Not the craziness of Atkinsbut something pleasantly old-fashioned, based on the principle that less is more. A bitof self-restraint and selectivity in sustainabilityreporting goes a long way, not only inincreasing readability (raising the chance thatmore people might actually read them) but also improving the quality of reporting.

Every diet needs its instruction manual. Hereare my suggested five steps to slimmer andmore successful sustainability reporting.

For us, that is opinion leaders and staff. We don’t see NGOs or

issue experts as the main readers. In our experience they want

much more detail on their particular issues than this format

allows. As one NGO remarked: “I hope I don’t learn anything new

from a company’s sustainability report. If I do, my relationship

with that company is in trouble. I should know much more

already from ongoing discussions.” And it’s certainly not the

financial community. On the whole they are looking for your key

numbers or comparative rankings. As one investment analyst

told me pointedly: “We don’t do words. Just the data please.”

celeryPassthe

Use other channels – above all the web and face-to-face

discussions, to allow those who want more detail on a

particular issue to drill down deep. This means a lot of

hard work putting the specialist information on the web

and keeping it current. Shorter printed reports mean more

information and transparency in total – just tailoring the

information to the medium that best serves the audience.

The printed report is the tip of the iceberg that leads

people with a particular interest to your website.

By Mark WeintraubEditor of the slimmed-down Shell Report(32 pages including cover)

CORPORATE SUSTAINABILITY REPORTS ARE BECOMINGEVER FATTER. PERHAPS IT’S TIME FOR A DIET.

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Like the best Italian cooking, the art lies in what

you leave out. (Note: This is NOT to hide things,

but to help readers who focus on those areas, good

and bad, that really matter.) You need a clear and

transparent process that is externally focused to

make that selection. We use our existing company-

wide risk and issues management systems to

select the issues and locations that matter most

financially and to external stakeholders.

Try to write it for a 12-year-old. Not for the cognoscenti. You’ll inevitably land somewhere in the middle. But in doing soyou’ll strip away the corporate jargon and have a better chance of being actually understood by intelligent people not deeplyfamiliar with sustainable development. The subject is importantenough for everyone to be able to understand how well you are(or aren’t) doing. Constant vigilance and considerable tact arerequired in helping colleagues overcome their love of corporatespeak. If you want to keep your friends, the phrase “great, nowlets see if we can say that in English” is best kept as a last resort.

Like any communication, you need to get systematic

feedback. We run the same reader survey programmes for

our sustainability reports as with our other communication

programmes, using an external market research group.

We use that hard data, more than the particular tastes of

individual managers, to shape our report.

Diets are never easy. It means difficult discussions internally, for example withspecialists who spend all their waking hours on a particular topic. Telling them theyhave a whopping 250 simple words to get the crux of their story across doesn’talways make for a jolly conversation. People who really live and breathe their issuecan rarely order breakfast in less than that word count. Giving them a serious chanceto address the specialists in language they are more comfortable with on the webhelps. But it remains a battle. It is a battle I believe worth fighting in the name ofclarity, transparency and effective reporting.

PASS THE CELERY, PLEASE.

404

In the last year, it has become fashionable to dismiss companies’ CSR activities as spin.In fact in some quarters the mistrust ofcompanies has grown so strong that youmight think their sole purpose is to rip offtheir customers, exploit their staff, destroythe environment, subvert legitimategovernment and bully their suppliers. In avery small number of cases companiescontinue to behave in a way that reinforcesthis view. But it is incorrect to assume that allcompanies are the same – all equally wicked.

Having worked in both the charity and thecorporate sectors, I have found that many NGOs talk about ‘business’ as a uniformmonoculture focusing purely on the bottomline. Interestingly, too, many private sectorworkers, largely through ignorance, group ‘theNGOs’ into one mass of critical back-stabbersout to ruin legitimate business.

With such polarised views about businessperformance, CSR has taken a battering. Butdespite this CSR is starting to flow around theveins of the most hardened business people. At its simplest, it’s about a licence to operate,to find and keep good staff and to have a

reputation that doesn’t get shredded or cause sniggers when your company name is mentioned over dinner.

To be truly sustainable, a company needs to focus on the economic, social andenvironmental aspects of the business. This has led to some far-sighted companiesproducing triple bottom line accounts.

Undoubtedly it is a challenge to keep all threeelements in focus. Worryingly, over the last few years there have been signs that theenvironment is slipping off the corporateagenda. Concerns have risen about the socialimpacts of business, and rightly so. But are we

now reaching a point in some businesses wherereducing their impact on the environment isnot seen as a valid concern of management?

Sometimes the absence of visibleenvironmental disasters on the scale of theExxon Valdes or the burning rainforests of Braziland Indonesia, means people assume theseproblems have been ‘solved’. But we must notforget that forests continue to disappear, thereare dozens of ‘minor’ oil spills a year and thethreats to people and nature from globalwarming grow daily as the carbon dioxideconcentration in the atmosphere builds up.

The UN Millennium Development goals providea good framework to address all three aspectsof sustainability and should be used by morebusinesses. These goals were adopted in 2000by 191 governments with a series of targetscovering social and environmental issues –such as addressing global poverty, ensuringenvironmental sustainability and achievinguniversal primary education for all children.

Many existing CSR activities can be hung fromthis framework. For instance, in HSBC’s newStrategic Plan, the first imperative is:

in the sand?

Is your head

DOES THE FOCUS ON HOT ISSUES SUCH AS ETHICS, DIVERSITY,HUMAN RIGHTS AND GOVERNANCE MEAN COMPANIES ARE IGNORINGTHE THREAT OF A DECLINING ENVIRONMENT?

ARE WE NOW REACHING A POINT IN SOMEBUSINESSES WHEREREDUCING THEIR IMPACT ONTHE ENVIRONMENT IS NOTSEEN AS A VALID CONCERNOF MANAGEMENT?

By Francis SullivanAdviser on the Environment HSBC Holdings plc

505

“To make HSBC one of the world’s leadingbrands for customer experience and corporatesocial responsibility”. This calls for consistencybetween corporate strategy, businessbehaviour and our wider responsibilities tocommunities and the environment.

As an example, HSBC has signed up to theEquator Principles. These voluntary guidelines provide a framework to address the environmental and social issues that arise in financing projects. As a result, we will not provide loans directly to projects where the borrower will not, or is not able to, complywith the Equator Principles or our own internal environmental, reputational and social policies – whichever carries the higher standard.

To help us apply these principles to high-risksectors, specific guidelines are beingprepared. The first, the Forest Land andForest Products sector guideline, waslaunched at our AGM in May. This willalso be applied to our own paper andfurniture purchasing. Consistencyis key. Over the coming months,other sector guidelines will beprepared, covering freshwaterinfrastructure, metals andmining, and energy.

We know these issues matter –our customers DO write to us.Our objective is to ensure,through the implementation ofclear lending criteria, that overtime we phase out support ofactivities that do not contributeto sustainable development, andincreasingly seek out those that do.

In the future, it may be better to talk about Corporate

Responsibility rather than CSR.

We need to remind ourselves that it’s not justsocial issues that matter. But above all it’s notwords that make a difference here, it’s deeds,

and it is CSR performance that counts, notonly commitment and policy.

THE FIRST IMPERATIVE IS TO MAKE HSBC ONE OF THEWORLD’S LEADING BRANDSFOR CUSTOMER EXPERIENCEAND CORPORATE SOCIALRESPONSIBILITY

06

Business is not doing enough to promotecorporate responsibility. Companies have todo a lot more to qualify as responsiblecitizens. The 2004 Global Compact summitwas met by this do-more mantra in a slew ofreports from organisations, some purportingto be business-friendly. Business has beenunder this pressure since the Starsky and

Hutch days of the 1970s when it was (quiterightly) being exhorted to do more for theenvironment. The refrain has now been takenup by the CR community – same mantra,different issues.

Sure, we can always do more. But it is utterlyboring to be told off all the time. If thepsychology does not work on teenagers, whyshould it have the desired effect on thebusiness community?

Although the 70s fashion for furniture andclothes are back, times have changed inbusiness. It is sad that so many people continue

to view the world through a half-empty glass.Even when you factor out the self-servingnature of these sentiments (we consultants all have something to sell), it’s rather depressingto think that not much has changed in the waynon-business people view business.

Self-appointed CSR gurus who exhortcorporations to boost their social performancegenerally have a poor understanding ofbusiness. Many find commercial life distasteful –harsh and uncouth. Hence their demands forbusiness to act in ways that totally defy logic. Take the constant call for widespreadstakeholder dialogue and for business to set

By Simon Propper and Peter Knight Context

COMPANIES ARE CONSTANTLYCAJOLED TO BE MORERESPONSIBLE. HOW BORING.LET’S LOOK INSTEAD AT WHATTHEY HAVE ACHIEVED.

07

up systems that track, audit and report on theprocess. While it’s certainly good for business totalk to others and gain a better understandingof the world (clever operators have been doingthis for centuries), why install yet another layerof management just to please pressure groups?

The CSR community must reconnect withbusiness. It needs to understand the role ofbusiness in society and the difficulties businessfaces trying to balance calls to behave in ways

that others think appropriate. In doing this theywill quickly discover – as any half-intelligentparent has – that praise drives action. Andaction encourages more action.

Let us look at the world through a half-fullglass for a change. Let us praise good, sensible,business-led initiatives. We congratulateCadbury’s, Gap, Nike and Starbucks (yes) forwhat they have done to clean up their supply-chains. We admire the jumbo reporters,

Novo Nordisk and the Co-operative FinancialServices, for staying the course. And a high-fiveto Amnesty International for being one of thefirst NGOs to report.

But there are more. Here’s a detailed list ofpositive, responsible actions taken bycompanies (who are our clients).

We’d say the glass is definitely half full.

Anglo American, the mining and natural resources company, has pioneered a ground-breakingHIV/AIDS policy in Africa, moving much faster than governments and other companies. By the end of 2003, 1,048 employees were receiving free antiretroviral therapy. More at www.angloamerican.co.uk

Anglo American

GSK, one of the world’s top pharmaceutical companies, has a social investment programme for the developing world that includes donations of medicines. For example, since 1998, thecompany has participated in a global partnership with the World Health Organization toeliminate lymphatic filariasis (elephantiasis) by 2020. GSK has donated 240 million treatments of preventive medicine (albenzadole) to more than 80 million people since 1998.More at www.gsk.com

GlaxoSmithKline

HP HP, the information technology provider, has 25 projects under way in 20 countries on fivecontinents, looking at ways to make information and communication technology available to more than four billion people who can’t afford computers. More at www.hp.com

Shell Shell produced one of the shortest reports of 2004 in a bold attempt to improve communication.It was the first energy company to commit not to explore or drill for oil in World Heritage Sites.More at www.shell.com

Unilever’s CR activities are now widely quoted, especially its efforts to innovate in new marketsamong the rural poor, and meet basic needs in nutrition and hygiene. It has, for example,developed biscuits in Ghana fortified with vitamin A and zinc to boost children’s immune systems.These and other products are often produced in small packages to make them more affordable.

Unilever has been working in partnership with a wide range of organisations to developguidelines on sustainable agriculture and to promote sustainable fishing practices. It has beenmanaging, measuring and reporting on its environmental impact for nearly a decade. This year it launched ice-cream freezer cabinets using hydrocarbon refrigerants that do not contribute toclimate change or ozone depletion. More at www.unilever.com

Unilever

Vodafone, the world’s biggest mobile telephone company, has set up a team to develop products that meet specific social needs, such as helping the disabled and elderly, or enhancingcommunications in education. It has begun to explore how mobile telecommunications cansupport the provision of micro-finance among the rural poor. The company collected 1.5 millionused handsets in 2003 – recycling 82% and reconditioning 18%. More at www.vodafone.com/responsibility

Vodafone

08

Operating and Financial ReviewWorth the wait?SO IT’S ALMOST HERE. AFTER A PROLONGED GAME OF ‘NOW YOU SEE IT, NOW YOU DON’T’, THE UK GOVERNMENT FINALLYPUBLISHED ITS GUIDANCE PAPERS FOR THE NEW OPERATINGAND FINANCIAL REVIEW (OFR) IN MAY 2004. THE REGULATIONSTHAT WILL MAKE THE OFR COMPULSORY FOR ALL QUOTEDCOMPANIES ARE STILL IN DRAFT FORM BUT ARE EXPECTED TO COME INTO FORCE IN 2005.

THE OFR HAS BEEN TRUMPETED AS A RADICAL RE-THINK OF CORPORATE REPORTING, BUT WHAT DIFFERENCE WILL IT REALLY MAKE?

What were the intentions?The goal is to address the weaknessesidentified by the Company Law Review thatreported the following:

“Company accounting and reportingremains essentially backward lookingand based on financial indicators. There are few statutory requirements to report on the main qualitative factors which underline past and futureperformance (or for future performance,even financial factors) – in particular onstrategy, prospects, opportunities andrisks; on tangible, and so-called ‘soft’assets (which may contributesignificantly to success but are not well captured in traditional financialstatements); and on key business andwider relationships. As a result, theinformation provided is defective anddirectors do not have the discipline ofaccounting for stewardship on somekey responsibilities.”

By Nigel Salter salterbaxter

09

In the Government’s own words, this is what the OFR is intended to do:

2. Companies could, ironically, use this as an excuse for less disclosureMany companies have been dragged, reluctantly,to reporting on CSR. The requirements of the OFR may actually mean a backwards step.Companies may cut their investment in CSRreporting and simply tick the boxes that thestatutory report requires. It’s easy to see how some companies may hide behind the OFRformula and go no further – and that would be a shame.

3. Forward looking statements, lawyers andauditors simply aren’t compatibleThe regulations want companies to lookforwards and discuss potential performanceand developments. But without safe harbourprotection (as exists in the US) it is unlikelythat the lawyers and the auditors will allowmuch to be said that is meaningful or helpful.Expect lots of legal caveats and genericstatements unless the lawyers and auditors canwork together to develop a methodology thatmakes this exercise genuinely worthwhile.

So…

The importance of CSR will be recognised inregulation but there’s a risk this will be anexcuse for companies to lose sight of theinnovation, business improvement and energythat CSR has delivered in many organisations.

Yes, it’s a good thing that CSR issues andperformance measures will be addressed by all listed companies. But only if companiesapproach the new requirements in a positiveand imaginative way.

Was it worth the wait? Companies now havethe choice between going the extra mile orsimply complying with regulations. Time will tell if this results in improved reporting.

So in essence, the OFR is intended to getcompanies thinking about and explaining likelyfuture performance and reporting on a range ofrelevant non-financial indicators including social,environmental, ethical and human resource issues.

The intentions are hard to argue with. The test is whether or not the thing works.

Will it work?That all listed companies will be required to incorporate CSR issues and performance into their annual reporting process is no doubt a good thing. And the best aspect is the emphasis on performance reporting – ie numbers and proof – not just a fewparagraphs of fluff.

But we see a variety of problems and risks.These are the top three:

1. The compliance approach can beblindingly dullAs CSR journalist Roger Cowe points out: ”CSR reporting will no longer be the primaryresponsibility of corporate affairs (ie PR)specialists – which is good news if you havefaith in company secretaries, but bad news if you buy the argument that they are risk-averse bureaucrats.“

If companies simply read the recommendations,take them on board and respond at face valuethen not only will annual reports become even more boring, but imaginative and relevant CSR reporting could be killed off before it really gets going. I like annual reports (andcompanies) that try to express personality,where a management style is made visible, and where there is a clear attempt to beinteresting, engaging and open. More guidancerisks more boredom.

“Shareholders can exercise effectivecontrol only if they have clear andmeaningful information about the main drivers of a company’s past andfuture performance. The OFR isdesigned to arm shareholders with that information. It will enable them to make a proper assessment not only of past performance but also ofthe directors’ view on the company’sfuture prospects and its approach to managing all those factors –environmental performance, employeeissues, relations with suppliers,customers and local communities –which are crucial to the company’sfuture success and reputation.”

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The fact that we don’t always geteverything right is one reason why weare committed to transparency, dialogueand a multi-stakeholder approach.

WE PREFER CLARITY TO WOOLLINESS. WE THINK ALL REPORTS SHOULD HAVE

A LOW-FLUFF COUNT.

By Nigel Salter salterbaxter and Simon Propper and Peter Knight Context

CSR reports can become lists of data and good case studies,but to be of value they shouldreflect the real issues facing the business. These are notalways ‘easy’ issues or the onesthat make the best pictures.

We are a people business and ourpeople don’t leave their values athome. We want to create a workplacewhere nobody needs to compromisetheir ethics and where difficult issues are openly discussed.

Animal research is essential to understand disease. It enables us to evaluate the effectiveness and safetyof new medicines before they are given to people.Regulations require the use of animals to establishthat new medicines are safe and to test some typesof vaccines after each batch is produced.

We continue to make progress, but recognisethat we still need to work hard to improveperformance at projects and operations wherewe have not yet got it right.

[We] ended a joint venture and 49 contractsdue in part to concerns about their willingnessto operate in line with our Business Principles.

Reported cases of bribery in 2003: 8.

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HERE ARE SOME EXAMPLES. WHERE DOES YOUR REPORT REGISTER

ON OUR FLUFFOMETER?

We have always said that corporateresponsibility is a journey, that whatever we have achieved there is always more to be done. As this web site shows, we have come a considerable way over the past year.

Note 1Sources available on request.

Note 2We are heartened by the difficultyin finding truly fluffy examples. We hope that in a few years fluffwill be on the endangered list.

Whilst integrating corporate responsibility into the fabricof the organisation is an objective in itself, ensuring thatit effectively sits at the heart of business strategy andcorporate values, it is not one that should be showcasedand then forgotten.

We know very clearly that companies which adopt andembrace corporate responsibility are more likely to createwealth and shareholder value than those that don’t and,in so doing, link this to their core business principles.

Because of the large number of diesel storage facilitiesidentified we were unable to develop spill response plans. Instead, the pollution control training course will bemodified to incorporate the training about how spillresponse plans should be developed.

As a responsible business, [companyname] has an important role to play in balancing social, economic andenvironmental factors in accordancewith society’s transition to moresustainable forms of development.

We similarly approach a comprehensiveunderstanding of the full life cycle andsafe use of our products to ensure alltheir benefits are delivered.

In our company, we pursue a corporate culture thatcombines the determination to achieve economic successwith cosmopolitanism, trust, transparency and responsibilityfor our environment. This attitude is reflected in all areas of the company and is absolutely essential if we are to put the Group’s current product and marketing offensivesuccessfully into practice and thus safeguard the future ofthe Group on a sustainable basis.

Regional employment equity officershave played a significant role inhighlighting regions where employmentequity is not practised as vigorously as executive management would prefer. In so doing, these officers enablecorrective action to be taken and ensurethat the entire [company name] staff is aware of the imperative representedby employment equity.

KEY Yes a See comments AR Annual Report BitC CR Index Business in the Community Corporate Responsibility index DR Directors’ Report H&S Health and Safety SHE/EHS Safety, Health & Environment

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1. The cut-off date: for data inclusion was July 31 2004 and our assessments are based oninformation in the public domain on that date.

2. The top 250 UK companies: were taken fromthe Financial Times website on June 7 2004.

3. The top 50 US companies: were taken fromthe Standard & Poor’s 500 index on July 31 2004.

4. The top 50 Euro companies: were taken fromthe Financial Times website on July 31 2004.They are the top 50 excluding UK companies.

5. Number of years reporting: refers to eitherenvironment or CSR reports. Mergers andacquisitions may affect these data by reducingthe number of years recorded.

6. Web reports: it is important to note thatwhat some companies call a report is actuallyonly a couple of pages. We attempt to identifythe level of information covered and make ajudgement about what can reasonably beclassified as a ‘report’.

7. Section in annual report: typically refers tocontent of one full page or more. We indicate if data are included where possible. Only inexceptional circumstances is a company thatonly publishes information in its annual reportclassified as a reporter.

8. Independent verification statement: refersto formal auditing of the report by third partiesand excludes informal comments by externalcommentators.

9. Includes environmental performance:covers a range of issues e.g. emissions anddischarges, resource use and waste. A dot inthis box means that some but not necessarilyall the company’s impacts are reported, ideallywith data.

10. Includes social and ethical performance:covers a range of subjects e.g. business ethics,community, employment, health and safety,and human rights. A dot in this box means thatsome but not necessarily all relevant issues are reported, ideally with data. Companiesreporting community/health and safety dataonly did not receive a full dot.

11. Covers supply-chain: is a new categoryadded this year. We identify when supply-chainissues are covered only briefly and specificinformation is reported.

12. FTSE4Good: a dot in this box means acompany is included in either the World or UK index.

13. Dow Jones Sustainability Index: a dot in this box means a company is included in either the World or European STOXX index.

14. BitC CR Index: only records the companiesthat appeared in the top 100, not the full list of participants.

15. Investment Trusts: are excluded becausethey are not regarded as trading companies.Their places have been taken by the nextlargest companies outside the top 250.

We have made every effort to ensure that the data in Directions areaccurate. Our research is based on information on company websitesand in printed reports. The research findings were verified with eachcompany on the telephone – our thanks to Christina-Maria Weiss whocarried out the research this year. In just a few cases companiesdeclined to participate, but most were extremely helpful and keen tohave their entry checked. If we have missed data, please get in touchand we will update our records.

Although our categories are simple and non-judgemental, we still had toapply some rules and definitions to ensure a consistent approachbetween companies. These are:

Methodology

Num

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of y

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repo

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in a

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(FTSE ranking on the left)

Sector name

051 A COMPANY –– a b –– –– –– –– –– 1 a Comment b More comments

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Analysisoverview

Number of companies that:

UK sector with:

24 of the top 250 UKcompanies reported for the firsttime this year (29 a year ago)

145 of the top 250 UKcompanies now report(132 a year ago)

UK

250

UK

100

Euro

pe 5

0

US

50

REPORT 145 (132) 83 (84) 27 (22) 44 (40)

REPORT ENVIRONMENTAL 123 (98) 75 21 42AND SOCIAL PERFORMANCE

REPORT ENVIRONMENTAL 140 (132) 81 26 44PERFORMANCE

REPORT SOCIAL AND 127 (100) 79 22 42ETHICAL PERFORMANCE

COVER SUPPLY-CHAIN ISSUES 54 37 6 18

ARE DEFINED AS 105 (118) 17 23 6NON-REPORTERS

HAVE INDEPENDENT VERIFICATION 60 (45) 44 2 21

ARE REPORTING FOR THE FIRST 24 (29) 7 8 6TIME THIS YEAR

PRODUCE NO REPORTING OF 44 (56) 6 (16) 24 1SUBSTANCE (NO CSR REPORT

AND NO SIGNIFICANT SECTION

IN ANNUAL REPORT)

REPORT ON THE WEB ONLY 43 26 5 13

REPORT IN PRINT ONLY 3 1 0 0

Last year’s figures shown in brackets where available.

LEAST COMPANIES REPORTING Software and computer services 0/5 0/1Insurance 1/5 1/1

Leisure and hotels 2/17 4/6Speciality and other finance 3/14 2/2

100% COMPANIES REPORTING Beverages 4/4 4/4Tobacco 3/3 3/3Utilities 8/8 4/4

MOST FIRST-TIME REPORTERS Support services 4/18 1/6Media & entertainment 4/19 4/9

Sect

or

UK

100

UK

250

14

Analysis overview

60 of the top 250 UK companieshave independently verifiedreports (45 a year ago)

123 of the top 250 UK companiesreport environmental and socialperformance (98 a year ago)

44 of the top 250 UK companies produceno CSR information of substance, in anyreport (56 a year ago)

15

37 of the UK top 100 companies report onsupply-chain issues, compared with 18 of theEuropean top 50 and 6 of the US top 50

83 of the top 100 UK companies report,compared with 44 of the European top 50 and 27 of the US top 50

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001 GENERAL ELECTRIC 2 –– a –– –– a H&S and Community only

002 MICROSOFT 1 –– –– a a –– –– a Limited data

003 EXXON MOBIL 4 a –– –– –– –– a With data

004 PFIZER 3a –– a –– a Last report published in 2001 b H&S and Community only

005 CITIGROUP 4 –– ––

006 WALMART STORES –– –– a –– –– –– –– –– a Fact sheets on community, people and energy; Good

Works community web section; Statement of ethics

007 AMERICAN INTERNATIONAL –– –– a –– –– –– –– –– –– –– a Code of conduct only

GROUP

008 BANK OF AMERICA 4 –– a –– b –– –– a 2003 update to 2002 environmental report and

community webpage b Community data only

009 JOHNSON & JOHNSON 8 ––

010 INTEL 10 a b –– –– a Separate EHS and Global Citizenship report b Brief reference to social reports

011 IBM 14 a –– –– b –– –– a Report pdf and additional web information b Describe supplier evaluations, but little data

012 CISCO SYSTEMS 1 –– a –– b b –– –– a Brief reference b Limited data

013 PROCTER & GAMBLE 11 a b c –– d a Summary report b Report pdf c Reference to Sustainability report d Policies

014 JP MORGAN CHASE –– –– a b –– –– –– –– –– –– a Community web section mainly covers policies;

Community data only b Covers community

015 COCA-COLA CO. 3 a b c –– a Brief reference b Limited data c Brief mention, Supplier Guiding Principles

016 VERIZON COMMUNICATIONS –– –– a b –– –– –– –– –– a Community and environment web sections, limited data b Covers community only

017 CHEVRON TEXACO 1 a –– –– –– –– a Summary report

018 MERCK & CO 2 –– a –– –– –– a Covers access to medicines

019 ALTRIA GROUP –– –– a –– –– –– –– –– –– a Responsibility web section mainly covers policies;

community data only

020 WELLS FARGO –– –– a b –– –– –– –– –– a Sections on community and diversity b Covers community only

021 DELL INC. 5 a b –– –– a Report pdf and additional web information b Brief reference

022 PEPSICO 1 –– a b –– c c –– –– –– a Citizenship web section mainly covers policies b 15 pages c Limited data

023 SBC COMMUNICATIONS –– –– a –– –– –– –– –– –– a Corporate citizenship web section covers mainly

community and diversity, limited data

024 UNITED PARCEL SERVICE 1 a –– –– a Reference to Sustainability report

025 TIME WARNER 1a b –– –– –– –– a Last report published in 2002 b Pdf

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026 HOME DEPOT –– –– a b –– –– –– –– a Social Responsibility web section with overview of

programmes, limited data b Covers community only

027 AMGEN –– –– a b –– –– –– –– –– a Community web section b Covers community only

028 LILLY (ELI) & CO 7 –– –– –– a –– –– a Brief mention of EHS supplier evaluations

029 FANNIE MAE –– –– a b –– –– –– –– a Social responsibility section mainly covers community b Mentions affordable housing only

030 3M COMPANY 2 a –– –– a Executive summary

031 AMERICAN EXPRESS –– –– a –– –– –– –– –– –– a Community web section, including report on donations

032 TYCO INTERNATIONAL –– –– a –– –– –– –– –– –– –– a Commitment web section mainly covers policies

033 HP 3 ––

034 COMCAST –– –– a –– –– –– –– –– –– a Sections on community and diversity

035 ABBOT LABS 5 –– a –– –– a Brief section on the supplier code of conduct and training

036 MEDTRONIC –– –– a b –– –– –– –– –– a Sections on community and supplier diversity b Brief reference to community

037 WACHOVIA –– –– a b –– –– –– –– –– a Section on community; 3 pages on environmental

stewardship, limited data b Covers donations only

038 VIACOM –– –– a –– –– –– –– –– –– a Code of Ethics only

039 QUALCOMM –– –– a b –– –– –– –– –– a Sections on community, diversity, environmental policyb Brief reference to community

040 ORACLE GROUP –– –– a b –– –– –– –– –– a Community web section b Covers community only

041 MORGAN STANLEY –– –– a –– –– –– –– –– –– –– a Charitable report; diversity web section

042 CONOCOPHILLIPS 1 a a –– a b –– –– –– a Limited data b H&S and community only

043 U.S. BANCORP –– –– a b –– –– –– –– –– a Community web section, includes community report and

info on supplier diversity b Covers community only

044 EBAY –– –– a –– –– –– –– –– –– a Community web section

045 BELLSOUTH –– –– a –– –– –– –– –– –– –– a Sections on community, diversity and ethics

046 UNITED TECHNOLOGIES 1 –– a –– –– b –– –– a 2 page EHS Report pdf b H&S and community only

047 MERRILL LYNCH –– –– a b –– –– –– –– a Sections on community and diversity; environmental policyb Covers community only

048 WALT DISNEY 3 a –– a b –– –– a Environment report; limited data b Community only

049 WYETH 2 a –– b –– –– –– a Reference to EHS report b H&S and community only

050 BRISTOL-MYERS SQUIBB 8 a –– –– a Summary

(S&P 500 ranking on the left)

18

001 NOVARTIS 8 –– a b –– a 24 pages with data b Brief mention

002 TOTAL ELF FINA 4 a b –– –– a 13 pages with data b AR content verified

003 NESTLE 2 a a –– b –– –– a 2000 Sustainability report; next report in 2005 b Employment only

004 NOKIA 7 a –– a Brief reference

005 ROCHE 12 a b –– a Reference to Sustainability report, both documents

sent out together b Brief mention

006 UBS 6 –– ––

007 DEUTSCHE TELEKOM 9 –– ––

008 TELEFONICA 2a b –– a 2 years groupwide b Reference to CR report

009 ENI 3 a –– –– –– a 21 pages governance and CR;

11 pages Sustainable Development

010 SIEMENS 6 a –– –– a Governance section

011 FRANCE TELECOM 4 a –– a AR content verified

012 AVENTIS 4

013 BNP PARIBAS 4 a a AR content verified

014 L’OREAL 1 –– a –– a AR content verified

015 GAZPROM 1 –– a –– –– –– –– a 2002 environmental protection report

016 BANCO SANTANDER 2CENTRAL HISPANO

017 SAP –– –– a –– –– –– –– a CR webpage with policies and links

018 SANOFI SYNTHELABO 2 ––

019 DEUTSCHE BANK 7 –– ––

020 TELECOM ITALIA 4 –– a b –– –– a Pdf of 2002 reportb 75 pages in 2003 AR

021 BBVA 2 a –– a CR webpage; pdf of report

022 ING 4

023 EON –– a –– –– –– –– –– –– –– a Some operating companies produce reports

024 ERICSSON 5 –– a b –– –– a Pdf b Brief reference

025 TIM 2 –– a b –– c –– a Sustainability web section with pdfs; policies b 44 pages c Reference to policies

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Euro top 50Excluding UK companies


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026 ALLIANZ 1 a –– b a CR Magazine with general sustainability issues b Brief mention

027 DAIMLERCHRYSLER 6 a –– –– –– –– a Separate Environment and CSR report

028 ENEL 7 ––

029 CREDIT SUISSE 10 ––

030 CREDIT AGRICOLE 1 –– a –– –– a Sustainable Development web section

031 PHILIPS ELECTRONICS 2 a –– a Brief mention with reference to Sustainablity Report

032 AXA 2 –– a b –– –– a Environment report b AR content is verified

033 SOCIETE GENERALE 4 a –– a AR content is verified

034 ABN AMRO 1 –– a –– a 2002 environment report; policies

035 CARREFOUR 3 ––

036 AP MOLLER-MAERSK –– –– a –– –– –– –– –– –– –– a Safety, security and environment web section;

list of improvements

037 LVMH 3 –– a b –– a Environment report b Employment data in AR and ’solidarity’ page on website

038 GENERALI –– a b –– –– –– –– –– a Social Commitment report b Philanthropy webpage; pdf

039 UNICREDITO ITALIANO 4 a –– a Pdf

040 YUKOS 4 –– –– –– –– –– ––

041 SURGUTNEFTEGAS –– –– –– –– –– –– –– –– ––

042 BASF 15 ––

043 BMW 7 a –– b a Responsibility webpage; pdf of report b With data

044 VIVENDI UNIVERSAL 5 a –– –– –– a Pdf

045 FORTIS –– –– a –– –– –– –– a AR report content – positioning statements only;

community webpage

046 STATOIL 3 a a Brief mention

047 MUNICH RE 3a b –– c –– a 4th report due October 2004 b Webpage with

sustainability issues c Employment and philanthropy only

048 LUKOIL 1 –– a b –– –– –– –– a Webpage with policies; community involvementb 14 pages Social Responsibility

049 DEUTSCHE POST 2 a b –– –– –– a Separate Environment and Human Resources &

Social Report b Reference to reports

050 REPSOL YPF 8 a b c –– a Separate Environment and Social Report b Environment report only c Brief mention


20

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40 BAE SYSTEMS 4 –– –– –– ––

131 COBHAM 1 –– a b –– –– –– –– –– a AR content b Detailed section with data

196 MEGGITT –– –– –– –– –– –– –– –– –– ––

65 ROLLS-ROYCE 6 a b c d –– 10 a Separate environment and community reports b Environment reports only c H&S and community only d Code of conduct only

68 SMITHS GROUP 2 a b c –– –– –– a Pdf only b H&S only c Brief mention

113 GKN 4 –– a b –– –– –– –– 66 a AR content b 10 pages, with data

152 INCHCAPE –– –– a b –– –– –– –– –– –– a AR content b 6 pages, limited data

35 ABBEY 5 a b c d –– a Pdf b With data c Verification of environment

section d Piloting new policy

60 ALLIANCE & LEICESTER 2 a b –– c d –– –– a Pdf b With data c Limited data d Examples of successes

8 BARCLAYS 5 –– 9

107 BRADFORD & BINGLEY 1 a –– b –– –– a Pdf b Brief mention

138 EGG –– –– a b –– –– –– –– –– a 2 web pages b Includes environment and community data

9 HBOS 4 a –– 29 a Starting to assess suppliers

2 HSBC 4 a b c –– a Brief reference in DR b Verification of

environment section c Mention Ethical Code

10 LLOYDS TSB 7 a b c 13 a Pdf b Verification of environment section c Report number of supplier assessments

71 NORTHERN ROCK 5 a –– –– a Describe initiatives with key suppliers

and feedback from supplier survey

5 ROYAL BANK OF SCOTLAND 3 –– a b 27 a Community only b Brief mention

22 STANDARD CHARTERED 3 –– a b c d –– –– a ‘Our Beliefs’ web pages and environment

report pdf b Verification of environment reportc Data on community only d Policy only

53 ALLIED DOMECQ 4 –– a b 24 a Little data b Brief mention

11 DIAGEO 5 a b c 34 a Separate Corporate Citizenship and

Environment reports b Pdfs c Brief reference

39 SAB MILLER 8 a –– a Mention in social performance review

64 SCOTTISH & NEWCASTLE 5 –– a –– 82 a Some case studies


Aerospace & Defence

Automobiles & Parts

Banks

Beverages

Top 250 UK companies by sector


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57 BOC 2 –– a b –– c d –– 25 a CR web section, no data b 5 pages with datac H&S and community d Brief mention

244 BRITISH VITA –– –– a b –– c d –– –– –– –– a One environment page b 5 pages c Energy data d H&S data

79 ICI 13 –– –– 17

99 JOHNSON MATTHEY 2 –– a b –– c –– 76 a Pdf b With data c H&S and community data only

155 AGGREGATE INDUSTRIES 3 a –– b –– 99 a Pdf b Brief mention, target to evaluate UK suppliers

163 AMEC 3 –– –– –– 56

157 BALFOUR BEATTY 3 a b –– –– a Brief reference in DRb Brief mention, developing a Supplier Code

133 BARRATT DEVELOPMENTS –– a a –– –– –– –– –– –– –– a To be published in September 2004

168 BELLWAY 1 a b –– c d –– –– –– a Pdf b 5 pages c Little data d Brief mention

141 BERKELEY 2a –– –– –– 94 a 3rd report due in August 2004

200 BOVIS HOMES 3 a b –– c –– –– a Pdf b Brief reference in DR c Brief mention

108 BPB 1 a –– b b –– –– –– 90 a Pdf b Little data

117 GEORGE WIMPEY 2 –– a –– –– –– a Brief mention, target to survey suppliers

74 HANSON 4 a –– b b –– –– –– –– a Group overview and separate UK and North America

reports b Separate UK/North America data

247 MARSHALLS –– –– a b –– –– –– –– –– –– –– a Policies only b 6 pages, with limited data

210 MCCARTHY & STONE 1 –– a b –– c –– –– –– a AR content b 6 pages, with some social data c Little data

228 NOVAR –– –– a –– –– –– –– –– –– –– a Policies only

96 PERSIMMON 2 –– –– a b –– –– –– a Little data b Target

151 PILKINGTON 5 –– a b –– c –– –– –– a AR content b 6 pages with data c Brief mention

219 REDROW –– –– a b –– –– –– –– –– –– –– a CSR web section with policies and news b 4 pages, limited data

119 RMC 4 a –– b –– –– –– a 9 page overview. Also publish some country

reports b H&S and community only

116 TAYLOR WOODROW 2 –– a –– –– –– a Pdf

125 TRAVIS PERKINS 3 –– a b –– –– –– a AR content b 8 pages with data

227 WESTBURY –– –– a b –– –– –– c –– –– –– a Brief CSR web section – no data b 17 pages, little data c Brief mention

156 WILSON BOWDEN 2a b c –– –– –– –– –– a 3rd report due August 2004 b Pdf c 4 pages, with some data and targets

55 WOLSELEY –– –– a b –– –– –– –– –– –– –– a Brief statement/policies b 4 pages, little data


Chemicals

Construction & Building Materials

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128 INTERNATIONAL POWER 2a –– b –– c d –– –– a 4th year on H&S b 6 pages with data c H&S and community data only d Policy only

42 SCOTTISH & 5 a b c d e –– –– a Environment report b Pdf c 4 pages with data

SOUTHERN ENERGY d Some data in AR e Brief mention

32 SCOTTISH POWER 8a b c –– 12 a 9th report due October 2004 b With data c Brief mention

192 VIRIDIAN GROUP –– –– –– –– –– –– –– –– ––

148 INVENSYS 2 –– a b –– c –– –– 92 a EHS report b Brief reference c H&S only

229 SPECTRIS –– –– a b –– –– –– –– –– a Short web section, but limited data b 4 pages

176 COOKSON –– –– a –– –– –– –– –– –– –– a Code of conduct and EHS policy

206 FKI 4 a –– b –– c d –– a To be published August 2004 b 8 pages with data c H&S only d Brief mention

234 HALMA –– –– a –– –– –– –– –– –– a AR content

142 IMI 3 –– –– a –– –– a Mainly community

174 KIDDE 2 a b –– –– –– a Pdf b With data

100 TOMKINS –– –– a b –– –– –– –– –– –– a Policies, AR extract. Plan to report next year b 4 pages with limited data

230 WEIR –– –– –– a –– –– –– –– –– –– –– a 3 pages, limited data

246 BIG FOOD –– –– a b –– –– –– –– –– –– a Statement and policies b CSR programme assurance statement

34 MORRISON –– –– a b –– –– –– –– –– –– –– a One page on charity supportb Brief reference in DR

46 SAINSBURY (J) 7a –– b –– 8 a 8th report due September 2004 b Brief reference in DR

183 SOMERFIELD –– –– a b –– –– –– –– –– –– a CSR web section, limited data b 4 pages

12 TESCO 3 a –– –– 19 a Brief reference under corporate governance


Electricity

Electronic & Electrical Equipment

Engineering & Machinery

Food & Drug Retailers



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56 ASSOCIATED BRITISH FOODS –– –– a b –– –– –– –– –– –– –– a AR content b 4 pages, no data

28 CADBURY SCHWEPPES 5 –– 49

225 DAIRY CREST –– –– a –– –– –– –– –– –– –– a AR content

187 NORTHERN FOODS 1 –– a –– a a –– –– –– –– a Limited data

134 TATE & LYLE 4 a b c –– d e –– 79 a Community report b CSR c 8 pages with datad H&S and Community data only e Brief mention

16 UNILEVER 8 a b 3 a Publish Environmental Report and Social Reviewb Covers certain aspects eg fish and agriculture

suppliers. Developed key principles for suppliers

236 SMITH (DS) –– –– a b –– –– –– –– –– –– –– a AR content b 3 pages, limited data

45 BOOTS 5a –– b –– c 30 a 6th report due August 2004 b 4 pages c Brief mention

114 BURBERRY –– –– –– a –– –– –– b –– –– a 3 pages, limited data b Brief mention, some audits

197 CARPETRIGHT –– –– a b –– –– –– –– –– –– –– a Due August 2004 b Brief reference in DR

143 CARPHONE WAREHOUSE –– –– a b –– –– –– –– –– –– –– a CSR web page b 3 pages

75 DIXONS 2 –– a –– b c –– a With data b H&S and community data only c Brief mention

31 GUS 4 a b 77 a Summary report b With some audit data

172 HMV –– –– –– –– –– –– –– –– –– ––

194 JJB SPORTS 1 –– a –– –– b –– 80 a Environment only b Code of practice only

135 KESA ELECTRICALS a –– –– –– –– –– –– –– –– a Company formed during financial year,

previously reported under Kingfisher

33 KINGFISHER 3 a –– 50 a Pdf

213 LASTMINUTE.COM –– –– –– –– –– –– –– –– –– –– ––

36 MARKS & SPENCER 3 –– a 18 a Brief reference

203 MATALAN –– –– a b –– –– –– c –– a Policies only b Brief reference c Brief mention, Code of conduct

175 MFI FURNITURE –– –– –– a –– b b c –– –– a 4 pages with some data b Some data in AR c Brief mention

198 NEW LOOK –– –– a b –– –– –– –– –– –– a Policies and approach b Brief reference

61 NEXT 1 –– a –– –– –– a Pdf

106 SIGNET –– –– a b –– –– –– c –– –– a Policies and approach b 4 pages c Approach and Code of conduct

204 SMITH (WH) 1 –– a –– b –– –– a 7 pages with data b Brief mention, Code of conduct

223 WOOLWORTH 2 –– –– –– 70


Food Producers & Processors

Forestry & Paper

General Retailers

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43 AMERSHAM a 3 –– –– –– –– –– 96 a Delisted from the London Stock Exchange on

31 May 2004 following the acquisition of

Amersham by GE

54 SMITH & NEPHEW 10 –– –– a –– a Code of conduct

232 SSL INTERNATIONAL 5 –– a –– –– b –– a Policies and Environmental Report pdf b Brief mention

149 ARM HOLDINGS 3 –– –– a b –– 52 a Limited data b Brief mention

140 MARCONI –– –– a b –– –– –– –– –– –– –– a Policies and approach to EHS b Some data on H&S and donations

195 SPIRENT –– –– a b –– –– –– –– –– –– –– a Policies & AR content b Some data on H&S and donations

208 AMLIN –– –– a –– a –– –– –– –– a 1 page pdf on environmental progress, no data

181 BRIT INSURANCE –– –– a b –– –– –– –– –– –– –– a Reference to policies b Brief reference in DR

240 HISCOX –– –– a –– –– –– –– –– –– a Community web page;

link to art projects microsite

161 JARDINE LLOYD THOMPSON –– –– a –– –– –– –– –– –– a 2 brief web pages

84 ROYAL & SUN ALLIANCE 4 a b –– –– –– a Pdf b Mainly H&S and community

62 3i GROUP –– –– a b –– –– –– –– –– 55 a AR content b 5 pages with limited data


Health

Information Technology Hardware

Investment

Insurance



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50 CARNIVAL –– –– a –– –– –– –– –– –– –– a Environmental policy only

244 DE VERE –– –– –– –– –– –– –– –– ––

94 ENTERPRISE INNS –– –– –– a –– –– –– –– –– –– –– a Brief reference in DR

202 FIRST CHOICE HOLIDAYS –– –– a b –– –– –– c –– –– –– a Outlines key initiatives on sustainable tourism b With some data c Brief mention

201 GREENE KING –– –– –– a –– –– –– –– –– –– –– a Brief reference

66 HILTON 2 –– a 59 a Supplier standards and approach

67 INTERCONTINENTAL HOTELS –– –– a –– –– –– –– –– a Environment and community web section;

mainly covers policies

209 MANCHESTER UNITED –– –– a b –– –– –– –– –– –– a AR content b 6 pages, with limited data

178 MILLENNIUM & COPTHORNE –– –– –– –– –– –– –– –– ––HOTELS

137 MITCHELLS & BUTLERS a –– b c –– –– –– –– –– a Report due in December 2004; previously

reported as part of Six Continents b CSR web section with policies and news c Brief reference in DR

139 PUNCH TAVERNS –– –– a b –– –– –– –– –– –– –– a Brief web section b Brief reference in DR

104 RANK –– –– –– a –– –– –– –– –– –– –– a Brief reference in DR

211 STANLEY LEISURE –– –– –– a –– –– –– –– –– –– a Brief reference

216 WETHERSPOON (JD) –– –– a –– –– –– –– –– –– a Web report due later in 2004

90 WHITBREAD 3 –– a –– b –– –– a With data b Description of processes

92 WILLIAM HILL –– –– –– –– –– –– –– –– –– ––

212 WOLVERHAMPTON & DUDLEY –– –– a –– –– –– –– –– –– a AR content

BREWERIES

21 AVIVA 6 5

205 BRITANNIC GROUP –– –– a –– –– –– –– –– –– a Pdf of AR content

83 FRIENDS PROVIDENT 3 –– –– a –– 22 a Policies only

38 LEGAL & GENERAL 3 –– –– a –– a With data

63 OLD MUTUAL 3 a –– –– –– –– a 6 pages Corporate Citizenship

26 PRUDENTIAL 3 a –– –– –– a Summary report

191 ST. JAMES’S PLACE CAPITAL –– –– a b –– –– –– –– –– –– a Policies, charity activities b Brief reference in

DR plus section on Foundation


Leisure & Hotels

Life Assurance

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158 AEGIS –– –– a b –– –– –– –– –– a SRI information – policies b Brief reference in DR

18 BRITISH SKY BROADCASTING 3 a –– –– a Brief reference points to other documents

78 DAILY MAIL & GENERAL TRUST 1 –– –– –– –– –– ––

88 EMAP 1 –– a –– –– –– –– a With data

102 EMI 11 a b –– c –– a Pdf b With data c Brief mention

248 HIT ENTERTAINMENT –– –– –– a –– –– –– –– –– –– –– a Brief reference in DR

235 INFORMA –– –– –– a –– –– –– –– –– –– –– a See Taylor & Francis (recent merger)

49 ITV 1a b c d e –– 75f a Previously reporting under Granada and Carltonb Summary on request c Pdfs d With data e Former Granada business only f As Granada

132 JOHNSTON PRESS –– –– a b –– c –– –– –– –– a AR content b With data c Some data in AR

52 PEARSON 3 –– a –– 60 a 11 pages

250 PHOTO ME INTERNATIONAL –– –– –– a –– –– –– –– –– –– a Brief reference in DR

41 REED ELSEVIER 3 –– –– 23

44 REUTERS 3 a –– –– –– a Pdf printed on request

243 TAYLOR & FRANCIS –– –– –– a –– –– –– –– –– –– –– a Brief reference in DR

(See also Informa – recent merger)

171 TAYLOR NELSON SOFRES –– –– –– a –– –– –– –– –– –– a Brief reference in DR

121 TRINITY MIRROR 3 –– –– –– –– ––

120 UNITED BUSINESS MEDIA –– –– a b –– –– –– –– –– –– a Policies and statements – seeking to

develop more b Brief reference in DR

37 WPP 1a b c –– d d –– a 2nd report due October 2004b CSR Review, limited data c Pdf d Brief mention

87 YELL 1a –– b c –– –– –– –– a Newly listed July 2003 b Some information in

AR verified c Some data in AR

13 ANGLO-AMERICAN 4 a –– 57 a Details of initiatives to encourage SME suppliers

95 ANTOFAGASTA –– –– a –– –– –– –– –– –– –– a Pdf of AR content; more information in Spanish

20 BHP BILLITON 8 –– 20

123 LONMIN 4 a –– 47 a Annual review is largely about CSR

17 RIO TINTO 8 a –– 16 a Mentioned throughout the report

163 VEDANTA –– –– –– –– –– –– –– –– –– ––

58 XSTRATA 2 a b c –– –– –– –– a Pdf only b Brief reference in DR c H&S and Community only


Media & Entertainment

Mining



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22 BG GROUP 7 –– ––

1 BP 10 a 2 a Brief mention

136 CAIRN ENERGY 4 a –– –– –– –– 67 a Brief but points to other documents

7 SHELL TRANSPORT & TRADING 7 a –– a Brief mention

246 SIBIR ENERGY –– –– –– a –– –– –– –– –– –– –– a Brief reference

215 WOOD GROUP (JOHN) –– –– a –– –– –– –– –– –– –– a Quality, EHS section

25 RECKITT BENCKISER 3 –– a b c –– 46 a Policies plus pdfs b Environment datac Social report due out in August 2004

97 ALLIANCE UNICHEM –– –– a –– b b c –– a Not full report. AR content that covers key issuesb No real data c Ethical trading

6 ASTRAZENECA 4 –– 38

144 CELLTECH 1a b –– –– a Currently subject to acquisition b Pdf printed on request

126 GALEN –– –– –– a –– –– –– –– –– –– –– a Brief reference in DR

4 GLAXOSMITHKLINE 4 a b c –– a Separate CR and SHE Reports b SHE Report c Brief mention

81 SHIRE PHARMACEUTICALS 1 –– a –– 93 a Brief mention

72 BRITISH LAND 2 a b –– a Mainly community b Brief mention

199 BRIXTON a –– –– –– –– –– –– –– –– a Review planned 2004

115 CANARY WHARF 2a b –– –– –– –– a Third report imminent b Policies plus pdf

170 CHELSFIELD 1 a b –– c c –– –– –– –– a To be published autumn 2004 b 2002 reportc Limited data

237 GREAT PORTLAND ESTATES –– –– a b –– –– –– –– –– –– a Environment section b Brief reference in DR

110 HAMMERSON 2 –– 100

51 LAND SECURITIES 3 88

82 LIBERTY INTERNATIONAL 2 –– –– –– ––

231 LONDON MERCHANT SECURITIES –– –– a b –– –– –– –– –– –– a EHS policies only b Statement of policies in accounts section

167 PEEL –– –– –– a –– –– –– –– –– –– –– a Brief reference in DR

220 PILLAR PROPERTY –– –– –– a –– –– –– –– –– –– –– a Brief reference in DR

238 QUINTAIN ESTATES & –– –– a b –– –– –– –– –– –– a Policies plus general info

DEVELOPMENT b Some information in Governance Statement

109 SLOUGH ESTATES 3 a b –– a Pdf b Target for 2004


Oil & Gas

Personal Care & Household Products

Pharmaceuticals & Biotech

Real Estate

(NAME CHANGE TO WARNER CHILCOTT)

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185 COMPUTACENTER –– –– a b –– –– –– –– –– –– a Policies only b Brief reference in DR

186 ISOFT –– –– a b ––– –– –– –– –– –– a Policies only b Statement and policies

101 LOGICA CMG –– –– a –– –– –– –– –– –– a CSR statement – AR content

147 MISYS –– –– a –– –– –– –– –– –– a Policies and commitments only

86 SAGE –– –– a b –– –– –– –– –– –– a 1 page of policies. UK report plannedb Brief reference in DR

69 AMVESCAP –– –– a b –– –– –– –– –– –– a Community development pages b Brief reference in DR

154 CATTLES –– –– a b –– –– –– –– –– –– a Policies only b Detailed section but light on data

150 CLOSE BROTHERS –– –– a b –– –– –– –– –– –– a Environment policy b Brief reference in DR

177 COLLINS STEWART –– –– –– a –– –– –– –– –– –– –– a Brief reference in DR

218 COUNTRYWIDE ASSURED –– –– –– a –– –– –– –– -- –– a Brief reference in DR

(CHANGING NAME TO CHESNARA)

249 GUINNESS PEAT GROUP –– –– –– –– –– –– –– –– –– –– ––

145 HHG –– –– –– a –– –– –– –– –– –– a Brief reference in DR

112 ICAP –– –– a b –– –– –– –– –– –– –– a Charity page b Brief reference in DR

184 INTERMEDIATE CAPITAL –– –– –– a –– –– –– –– –– –– –– a Brief reference in DR

180 INVESTEC 3 a b –– –– –– –– a Pdf b Brief reference in DR

160 LONDON STOCK EXCHANGE –– –– a –– –– –– –– –– a Mainly policies

48 MAN –– –– a –– –– b –– –– –– a Section from ARb Mainly charity and sponsorship activity

105 PROVIDENT FINANCIAL 3 –– –– 97

103 SCHRODERS 1 –– a –– b –– –– a Pdf plus support pages b Mainly community

111 CORUS 3 a b c –– –– a EHS report b Brief reference in DR c H&S only


Software & Computer Services

Speciality & Other Finance

Steel & Other Metals



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222 ATKINS 2a b c –– –– –– –– –– –– a 3rd report imminent b Environment report c Pdf plus support pages

129 BRAMBLES 1 –– a b –– c d –– a AR content b 9 pages with datac H&S and community data d Brief mention

93 BUNZL –– –– a –– –– –– –– –– a Policies and statements

98 THE CAPITA GROUP 2 –– –– –– –– –– ––

30 COMPASS GROUP –– a b –– –– c –– –– a 1st report in Jan 2005 b Strategy and policies c Some H&S and community

190 DAVIS SERVICE –– –– –– a –– –– –– –– –– –– a Brief reference in DR

226 DE LA RUE 1 –– a –– b –– –– –– a EHS pdf plus policies b H&S only

127 ELECTROCOMPONENTS –– –– a –– –– –– b –– –– a CSR section under construction b Brief mention

89 HAYS –– –– a –– –– –– b –– –– –– a Pdf 1 page update b Policy

188 INTERTEK TESTING –– –– a b –– –– –– –– –– –– –– a Compliance policy b Brief reference in DR

207 MICHAEL PAGE –– –– –– a –– b –– –– –– –– a With data b Some data in AR

169 PREMIER FARNELL 2 –– a –– –– –– a 5 pages with data

179 RAC 3 –– a b –– –– –– a Brief reference in DR b Some community info

217 REGUS –– –– a b –– –– –– –– –– –– –– a Environment policy b Brief reference in DR

70 RENTOKIL INITIAL 2 –– a b –– –– –– –– –– a Pdfs plus support pagesb Brief reference in DR

85 REXAM 1 –– ––

221 SECURICOR –– –– a –– –– –– –– –– –– –– a Policies only

165 SERCO 1 a –– –– –– –– 54 a Brief reference in DR

15 BT GROUP 12 –– a 11 a With data

73 CABLE & WIRELESS 6 a –– –– –– a Community report

130 COLT TELECOM –– –– –– a –– –– –– –– –– –– a Brief reference in DR

27 MMO 2 32

3 VODAFONE 4 83

14 BRITISH AMERICAN TOBACCO 3a –– –– a Next report imminent

59 GALLAHER 2a –– –– –– –– 84 a 3rd report imminent

29 IMPERIAL TOBACCO 3 –– –– ––

Telecommunications Services

Tobacco

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193 ARRIVA 1 –– a –– b b –– –– –– a AR content reformatted b Limited data

124 ASSOCIATED BRITISH PORTS 5 a –– 98 a Pdf plus support pages

234 AVIS –– –– a –– –– –– –– –– –– a AR content plus environment

47 BAA 15 26

153 BBA 3 a –– 69 a Pdf plus support pages

76 BRITISH AIRWAYS 13 64

147 EASYJET –– –– –– –– –– –– –– –– –– ––

173 EUROTUNNEL 2 –– a –– –– –– –– –– a Pdf of environment report

91 EXEL 2 –– a –– b c –– –– a Environment report b Policies onlyc Brief mention

159 FIRST GROUP 6 a –– 95 a Brief reference and points to other documents

239 FORTH PORTS –– a b –– –– –– –– –– –– a Pdf of 3 page report printed on request b Overview and policies

214 GO AHEAD 3a b –– –– –– a 4th report imminentb Brief reference in Corporate Governance

241 MERSEY DOCKS & HARBOUR 5 a b c –– –– –– –– –– a Environment report b Pdf onlyc Brief reference in DR

166 NATIONAL EXPRESS 3 a –– a Selected data is externally assessed

122 PENINSULAR & ORIENTAL 8 a –– a Greenhouse gas emissions reporting

STEAM NAVIGATION

162 STAGECOACH 1 a –– b –– –– –– a Environment reportb Some community and safety data

189 AWG 10 –– –– 44

24 CENTRICA 4 –– 48

119 KELDA GROUP 9 a –– 86 a Regulatory and environment data verified

19 NATIONAL GRID TRANSCO 8 1

224 NORTHUMBRIAN WATER 7 –– –– 51

182 PENNON GROUP 8 a –– a Pdfs plus supporting pages

80 SEVERN TRENT 10 a b 31 a Combination of report pages plus pdfs b Environment data

77 UNITED UTILITIES 10 21


Transport

Utilities, Other


31

Some reports lack substance because of a confusionbetween reporting and reputation management. While thefirst supports the second, they are very different creatures.CSR reports are supposed to be clear, honest reflections ofa company’s performance – good and bad. Reputationmanagement is the protection and projection of the desiredcorporate image – selected highlights designed to flatter.

Many companies do not see the difference, or simply chooseto ignore it. This can have the opposite effect to thatintended. Too much selectivity in a report simply reduces its credibility. But even the best reports can be inaccessible to non-specialists, such as business partners, customers and employees.

We are not killjoys. We believe companies should communicatetheir successes (they’re proud of them), but this must bedirected at the right audiences and tailored to their interests.

We suggest this simple two-step Beyond Reporting strategy:

Step 01

Step 02

Beyond Reporting

Produce a CSR report that covers the company’s materialissues and those that its stakeholders are interested in. Itshould reflect emerging best practice and be complementedby more detailed information on the website. This is wartsand all.

Use information generated by the reporting process forhighly targeted communications with selected audiences. This can be wart-free.

CSR communication beyond reporting – anything from postcards to videos – can be presented in a lively, engaging way. In a crowded market the first goal is to get noticed. Stakeholders are pleased to hear good news stories – as longas they know they can find the whole truth in the CSR report.Journalists and others need fresh examples to illustratearticles, speeches and research papers. There’s a market forthis information.

Fluff is being shorn from CSR, but this doesn’t mean thefuture of CSR communications will be entirely fun-free.

32

Directions is a joint research project by salterbaxter and Context.

We are separate companies, but have been workingtogether as partners for a number of years.

We work as a team for several of the clients listed here,providing a seamless consultancy, design, writing andproduction service for CSR reporting programmes.

The Context Group is a consultancy specialising in corporate social responsibility (CSR) strategyand communications.

We believe that responsible businesses can – and must – be profitable. We work with multinationals in all sectors to help them devise and communicatemore sustainable strategies.

We produce CSR and sustainable development reports covering environmental andsocial issues. We help companies with their internal and external communications.

salterbaxter is a corporatebranding and corporatecommunications designconsultancy.

We design and produce external and internalcommunications programmes for companies in a variety of business sectors.

Our work frequently involves the integration of financial and CSR reporting programmes for major plcs.

We specialise in three areas of work:

c CSR communicationsc Annual reportsc Brand/corporate identity

Our clients include:

British LibraryBSkyBBTBusiness in the CommunityDaily Mail and General TrustDiscoveryErnst & YoungGlaxoSmithKlineKelda GroupLand Securitiesmm0Provident FinancialReutersTetra PakUnileverVodafone

Core services:

c CSR reporting and communicationsc Development and writing of external

communicationsc CSR strategy and policy developmentc Opinion leader engagement and surveysc Facilitation and chairingc Pressure group briefings and issues trackingc Internal communications, workshops

and events.

Our team includes:

c Peter Knight, director, a former CSR journalist

c Emily Osband, senior consultant, specialist in website development

c Simon Propper, managing director, anenvironmental consultant with 13 yearsexperience, following a degree in chemical engineering

c Kevin Sweeney, US associate (California)c Lloyd Timberlake, US associate

(Washington DC).

Our clients include:

Anglo American www.angloamerican.co.ukBAE SYSTEMS www.baesystems.comBP www.bp.comBT www.bt.comEBRD www.ebrd.comEgg www.egg.comEMI www.emigroup.comGlaxoSmithKline www.gsk.comHP www.hp.comRMC Group www.rmc-group.comSainsbury’s www.j-sainsbury.co.ukShell www.shell.comSTMicroelectronics www.st.comUnilever www.unilever.comVodafone www.vodafone.comWPP www.wpp.com

social

environmenta contex

2

About us

To find out more about how you can cut out the fluff in your CSR reporting:

Contact Simon Propper:[email protected]: 020 7251 0050www.econtext.co.uk

Contact Nigel Salter:[email protected]: 020 7401 9401www.salterbaxter.com

Printed by Wace, using production facilities certified by ISO 14001 and ISO 9001-2000.

Wace achieved ISO 14001 in March 2000 and runs a full ContinuousEnvironmental Improvement programme. The programme aims todeliver reductions in solvent and energy use, waste, emissions andresources in all areas of the printing process.

Printed on Revive Uncoated, exclusively available from the RobertHorne Group and made from 80% post-consumer waste.

With thanks to Brenda the sheep, who was sheared, but not hurt, in the making of this report.

social

environmenta contex

salterbaxter8 Telford RoadLondon W10 5SH

Tel +44 (0)20 7401 9401Fax +44 (0)20 7401 [email protected]

ContextMorelands, 5-23 Old StreetLondon EC1V 9HL

Tel +44 (0)20 7251 0050Fax +44 (0)20 7251 [email protected]

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