Study Global Corporate Leaders Leave Investors Blind on ESG
Study: Global Corporate Leaders Leave Investors Blind on ESG
Wiesbaden, Washington D.C., Melbourne, March 3 2021. The state of transparency in corporate sustainability reporting leaves big blind spots for investors. This is revealed by the Global ESG Monitor (GEM) - a study of ESG reports from the largest listed companies in Europe, the United States and Australia. "Corporate ESG reporting shows remarkable differences in quality within and between the regions surveyed. Here, Europeans are often one-eyed kings among the blind," says Michael Diegelmann, CEO of German investor relations and ESG consultancy cometis.
For the study, a total of 140 companies from the leading indices DAX (Germany), EUROSTOXX-50 (Europe), Dow Jones Industrial Average (USA) and S&P/ASX-50 (Australia) were analysed. Both non-financial information in the annual reports (85 integrated non-financial reports - I-NFR) and in official sustainability reports (100 separate non-financial reports - S-NFR) were considered.
The research analysts used a variety of research methods and developed a proprietary analysis method, GEM ASSAY(TM), which uses data along with quality-evaluation criteria such as comprehensibility, transparency, measurability, comparability, timeliness, adequacy and reliability. The GEM ASSAY(TM) consists of 53 general and 490 industry-specific criteria, the latter of which were defined working with the "accounting metrics" of the Sustainability Accounting Standards Board (SASB). Other frameworks, like the Global Reporting Initiative (GRI) and the UN Sustainable Development Goals (SDGs), also informed the study criteria.