A Link Between Stock Exchange Membership and CSR Performance

By Bahar Gidwani

 

CSRHub recently examined corporate social responsibility (CSR) and sustainability rating data for the 18,991 companies in fourteen major stock exchanges.  Despite the fact that CSRHub includes 64 million pieces of data from more than 380 sources, there is enough data to rate only 17% of the companies on these exchanges.  For some exchanges, only 1% of their companies could be rated.  The NASDAQ had the highest percentage of rated companies, with data available on 57% of its companies.

 

The average perceived sustainability performance of the companies varied, across the fourteen exchanges.  Companies on exchanges that require sustainability reporting had higher average ratings than those that did not.  We expect sustainability reporting to increase dramatically over the next few years in all parts of the world, as both exchanges and exchange regulators mandate more disclosure of material non-financial information.  Even without mandated disclosure, we should be able soon to assess the sustainability performance of most public companies, just as we currently measure their credit score or brand value.

 

Relative Performance

CSRHub measures twelve different areas of sustainability performance across four main categories of interest: community, employee, environment and governance issues.  There is enough data to fully measure the performance of 2,427 of the companies we studied—13% of the total.  We used this data to give an overview of the performance of the companies by exchange, as compared to all 9,300 companies we track.

 

CSRHub CSR Stock Exchange Link

 

 

To see the full discussion including variations in coverage, the current and future international reporting requirements and future implications, download a full report here.

 

 

 


 

Bahar GidwaniBahar Gidwani  has built and run large technology-based businesses for many years. Bahar holds a CFA, worked on Wall Street with Kidder, Peabody, and with McKinsey & Co. Bahar has consulted to a number of major companies and currently serves on the board of several software and Web companies. He has an MBA from Harvard Business School and an undergraduate degree in physics and astronomy. Bahar is a member of the SASB Advisory Board. He plays bridge, races sailboats, and is based in New York City.

 

CSRHub provides access to corporate social responsibility and sustainability ratings and information on 14,400+ companies from 135 industries in 127 countries. Managers, researchers and activists use CSRHub to benchmark company performance, learn how stakeholders evaluate company CSR practices and seek ways to change the world.

 

 

 

Tagged , , , , , , , ,

Cynthia Figge to Speak at Sustainable Brands’15

Join us as at Paradise Point in San Diego, CA, Sustainable BrandsJune 1-4 where brand, sustainability & design leaders find inspiration, tools and partnerships to drive business success and positive impact.

 

Our Cofounder and COO Cynthia Figge will speak on June 2. Cynthia will present “More Proof That Sustainability Drives Operating Performance.”

 

We look forward to seeing CSRHub members at SB’15!

 

For more information and to register,click here.

 

Sustainable Brands'15

 

 

 


 

Cynthia Figge, Co-founder and COO of CSRHubCynthia Figge is a forerunner and thought leader in the corporate sustainability movement. She is COO and Cofounder of CSRHub, the world’s largest database that aggregates and organizes data and knowledge on the social, environmental, and governance performance of 14,000+ companies to provide sustainability ratings to the marketplace. In 1996 she co-founded EKOS International, one of the first consultancies integrating sustainability and corporate strategy. Prior to founding EKOS, she was an officer of LIN Broadcasting / McCaw Cellular, and led new businesses and services with Weyerhaeuser, New York Daily News; and with New Ventures. Cynthia is Board Director of the Compassionate Action Network International. Cynthia received her bachelor’s degree in Economics and an MBA from the Harvard Business School. She lives in the Seattle area.

 

CSRHub provides access to corporate social responsibility and sustainability ratings and information on 14,400+ companies from 135 industries in 127 countries. Managers, researchers and activists use CSRHub to benchmark company performance, learn how stakeholders evaluate company CSR practices and seek ways to change the world.

 

Tagged , , , ,

Watch CSRHub Co-Founder & CEO Bahar Gidwani on CUNY!

Brian Lehrer Live PBS
See Bahar Gidwani’s interview with Brian Lehrer aired Wednesday, May 13th at 7:30 p.m. ET on CUNY channel in NYC. The interview is also available online here. They discuss CSRHub’s big data approach to rating all companies on their sustainability performance.

Bahar Gidwani

 

Bahar is joined by Kevin Hagen, Director of Corporate Responsibility at Iron Mountain, a leading provider of storage and information management services. Kevin was previously head of CSR for REI.

 

Brian Lehrer, the popular Peabody Award-winning host of WNYC Radio’s Brian Lehrer Show, hosts an hour-long weekly television show on a wide variety of topics, including the digital age and how it’s transforming our world; new social and political trends; entrepreneurs of change; New York City politics; grassroots environmental efforts; one-of-a-kind, timely stories in the news; and innovative inventions and apps.

 

Image courtesy of  http://www.cuny.tv/show/brianlehrer

 

 

 


 

Bahar GidwaniBahar Gidwani  has built and run large technology-based businesses for many years. Bahar holds a CFA, worked on Wall Street with Kidder, Peabody, and with McKinsey & Co. Bahar has consulted to a number of major companies and currently serves on the board of several software and Web companies. He has an MBA from Harvard Business School and an undergraduate degree in physics and astronomy. Bahar is a member of the SASB Advisory Board. He plays bridge, races sailboats, and is based in New York City.

 

CSRHub provides access to corporate social responsibility and sustainability ratings and information on 14,400+ companies from 135 industries in 127 countries. Managers, researchers and activists use CSRHub to benchmark company performance, learn how stakeholders evaluate company CSR practices and seek ways to change the world.

 

 

 

Tagged , , , , , , ,

CSRHub & RepRisk study links CSR Performance & Reputational Risk

CSRHub and RepRisk release new CSR and Reputational Risk study

FOR IMMEDIATE RELEASE

 

New York, NY, USA and Zurich, Switzerland – May 13, 2015CSRHub and RepRisk are pleased to announce the findings of their joint research report on the link between perceived CSR performance and ESG-related reputational risk exposure.

 

CSRHub, the world’s largest CSR and sustainability ratings and information database, and RepRisk, the leading data provider of dynamic environmental, social and governance (ESG) risk analysis and metrics, combined several years of data on over 4,000 companies from the around the world to conduct the study.

 

The findings show that correlations do exist between perceived CSR performance and reputational risk. It appears that companies with the most sources of sustainability ratings also have the highest risk exposure, regardless of company revenue or market capitalization, and that sustainability rating sources can play a role in discovering and communicating corporate risk events.

 

In addition, the data indicates that companies that have strong CSR programs as measured by CSRHub, in the areas of Human Rights and Supply Chain, Leadership Ethics, and Resource Management, seem to have lower risk exposure, whereas those companies who have strong programs in Community Development and Philanthropy, Environment Policy and Reporting, or Compensation and Benefits seem to have higher risk exposure.

 

“Taken together, our findings suggest that corporate risk managers should seek to become involved in their company’s corporate responsibility and sustainability programs,” said Bahar Gidwani, CEO and Co-Founder of CSRHub.

 

Alexandra Mihailescu Cichon, Head of Business Development at RepRisk, said “This study was a step forward in demonstrating the link between sustainability and operating results, and helps support the idea that sustainability programs help mitigate corporate risk.”

 

To read the full report, please click here.

 

 

Contact

For CSRHub:

Bahar Gidwani

CEO and Co-Founder

New York, NY  U.S.A.

Email: bahar@csrhub.com

 

For RepRisk:
Gina Walser
Business Development and Marketing
Stampfenbachstrasse 42, 8006 Zurich, Switzerland
Phone: +41 43 300 54 48
Email: media@reprisk.com

 

About CSRHub

CSRHub provides access to corporate social responsibility and sustainability ratings and information on 14,400+ companies from 135 industries in 127 countries based on 12 indicators of employee, environment, community and governance performance and flags many special issues.

CSRHub’s system aggregates and normalizes 64 million data points from over 380+ data sources. The data comes from nine socially responsible investing research firms, well-known indexes, publications, “best of” or “worst of” lists, NGOs, crowd sources and government agencies. By aggregating and normalizing the information from these sources, CSRHub has created a broad, consistent rating system and a searchable database that links each rating point back to its source.

For more information about the usage and benefits of CSRHub, please visit: www.csrhub.com.

 

About RepRisk:

RepRisk is a leading business intelligence provider specializing in dynamic environmental, social and governance (ESG) risk analytics and metrics.

 

Daily, RepRisk systematically screens big data from a broad range of open intelligence sources in 15 languages in order to identify, filter, analyze and quantify ESG risks (such as environmental degradation, human rights abuses and corruption) related to companies, projects, sectors and countries. This external perspective provides valuable insight on whether a company’s policies, processes and commitments are consistently translating into performance.

 

Since 2006, RepRisk has built and continues to grow the most comprehensive ESG risk database that serves as a due diligence tool and early warning system in risk management, compliance, investment management, corporate benchmarking and supplier risk. The database currently includes risk profiles for over 52,000 public and private companies and 12,000 projects as well as for every sector and country in the world.

 

Headquartered in Zurich, Switzerland, RepRisk serves clients worldwide including global banks, insurance companies, investment managers, and corporates, helping them to manage and mitigate ESG and reputational risks in day-to-day business.

 

RepRisk provides the transparency needed to enable better, more informed decisions. For more information, please visit www.reprisk.com or follow us on Twitter.

 

Tagged , , , , , , ,

Apple’s New Corporate Citizenship Imperative

By Carol Pierson Holding

 

At the Apple earnings call last week, CEO Tim Cook reported Apple’s latest record-Apple Paybreaking results and the strongest March quarter ever, with 27% revenue growth and 40% earnings growth year over year.

 

Cook then commented on the two new data centers Apple is building which will run on 100% renewable energy, risking another conservative investor backlash when he linked them to Apple’s climate change politics: “This is just part of the work we’re doing to protect the environment and leave the world better than we found it.”

 

This took real chutzpah. Cook took a drubbing last year from conservative finance group NCPPR and its followers for spending on environmental projects not related to profit. Cook snapped back at critical NCPPR representative Justin Danhof, “If you want me to do things only for ROI reasons, you should get out of this stock.”

 

Tim Cook has become the passionate poster child for green electronics, touting environmental progress even with shareholders groups that may not be cheerleaders. And his operations department is implementing good works, eliminating emissions in new and existing Apple buildings, removing toxins from production and sourcing sustainable forests for packaging.

 

Just as important, Apple’s brand communications support its environmental efforts. Apple’s web site’s Environmental Responsibility touts both its green philosophy and its concrete actions. Cook intones on an Apple web video called “better” that “Climate change is real and a real problem for the world” and boasts that 94% of its corporate facilities and 100% of its data centers are now powered by renewable energy such as solar power.

 

Is Apple, now the world’s biggest company by market capitalization, finally leading corporate citizenship too? And doesn’t this just make Apple more vulnerable to environmental critics?

 

In fact, Apple is more vulnerable. An analysis in Huffington Post of Apple’s own 2014 report on climate change efforts reveals that “manufacturing (mostly in China) accounted for a whopping 73 percent of the company’s 34.2 million metric tons of greenhouse gas emissions.” Only 1 percent of the company’s emissions are connected to its solar-powered headquarters and data centers.

 

Bloomberg’s Adam Minter recently attacked Apple for the same thing, noting that other companies like Boeing and GM already have factories powered by renewables. Apple is a laggard even among technology companies. Working with BSR, HP has developed energy-management action plans for 20 supplier factories in China. IBM now requires its nearly 20,000 suppliers to chart their emissions and energy consumption and develop plans for reducing both. Apple has joined the Electronic Industry Citizenship Coalition but has yet to announce specific targets. This suggests that Apple is engaged in, if not green-washing, then selective reporting.

 

Apple may be late signing on to corporate citizenship, but it’s just in time. The maker of Macs and iPhones has for years had success using fabulous design and cool chic to ride roughshod over environmental critics and techie complaints about closed systems. Now, the company is entering consumer payment systems (Apple Pay) and health care information (HealthKit), markets where trust is absolutely paramount. These products lock consumers into Apple for their money and their health, and what could be more personal?

 

Apple is selling to a generation whose purchases are, more than ever, guided by a company’s environmental actions. Six in ten 16- to 20-year-olds (“Generation Z”) say they will go out of their way to buy products and services from businesses they know are helping to create a better world, up from five in ten among Gen Y. And a post-2008 crash McKinsey study noted the widespread perception that financial services have violated their social contract with consumers, leaving space for a trusted source in consumer wallets. Apple needs creds as a corporate citizen to succeed in this new arena. An honest and aggressive commitment is required.

 

In Apple We Trust? See more on Cynthia Figge’s chapter in the book Trust Inc. 

 

Photo courtesy of Darlo Reyes via Flickr CC

 

 

 


 

 

Carol Pierson HoldingCarol Pierson Holding writes on environmental issues and social responsibility for policy and news publications, including the Carnegie Council’s Policy Innovations, Harvard Business Review, San Francisco Chronicle, India Time, The Huffington Post and many other web sites. Her articles on corporate social responsibility can be found on CSRHub.com, a website that provides sustainability ratings data on 14,400+ companies worldwide. Carol holds degrees from Smith College and Harvard University.

 

CSRHub provides access to corporate social responsibility and sustainability ratings and information on 14,400+ companies from 135 industries in 127 countries. Managers, researchers and activists use CSRHub to benchmark company performance, learn how stakeholders evaluate company CSR practices and seek ways to change the world.

 

 

Tagged , , , , , , , , , , , , , , , , , ,