CSR Research Digest – December 2012
Now in its ninth year, the Tomorrow’s Value Research (TVR) provides a unique insight into the sustainability practices of the world’s largest companies. The study assessed the 25 largest companies by revenue in each of three different regions: Asia/Australia, Europe, Middle East and Africa, and the Americas, plus the 19 Dow Jones Sustainability Index (DJSI) 2011 supersector leaders.
- In the drive for greater transparency, companies risk becoming too introspective and losing sight of the bigger sustainability picture.
- Whilst an increasing number of organisations are painting a legitimate picture of sustainability success, the reality is that on a global scale they are far from reaching solutions.
- The 2012 Tomorrow’s Value Research highlights companies such as HP, Panasonic and Siemens who demonstrate best practice in their sustainability programmes.
- However, the success of these companies also demonstrates the difficulty that most have in moving up the ‘ladder’ to leadership.
- Only 10 of the 19 DJSI super-sector leaders scored over the leadership threshold (70%) and less than a third of the largest companies crossed this threshold.
- Europe continues to drive best practice in sustainability with an average score of 69%, but the greatest improvements in reporting have occurred in large Asian companies, highlighted by strong reports in Korea and Australia, as well as relatively new reporters in China and India.
- Not surprisingly, technology companies have taken the lead in applying innovation to environmental and social challenges.
- These companies are also leading the way in integrating broad stakeholder feedback into their innovation processes to drive new product development and more efficient manufacturing.
- But the most robust management and governance structures remain in the traditional ‘high risk’ industries such as oil and gas and heavy manufacturing.
- Leaders in this sector are building on decades of operating in challenging environments to roll out best practices in risk management that integrate specific mechanisms for stakeholder feedback.