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Only 3% of companies align sustainability to overall business strategy

12 February 2008

Only 3% of FTSE 60 companies are specifically aligning sustainability to business strategy in both their reports (23% in sustainability reports, 13% in annual reports), according to the latest research report by corporate reporting specialist Black Sun.

Black Sun’s latest narrative reporting research focused on examining the disconnect between annual reports and sustainability reports among FTSE 60 companies in an effort to highlight the need for consistency across both documents.

Over 100 annual and sustainability reports were analyzed in order to ascertain their completeness in a variety of areas, namely:

• Sustainability alignment to business strategy
• Management commitment
• Social, environmental and governance (SEG) risks
• Non-financial KPIs
• Governance mechanisms
• Assurance
• Communication and linkage

“We are seeing many company’s make bold claims about a ‘Responsible approach’ to business, yet when their reports are read in detail, these claims often lack substance and are in fact not aligned to overall business strategy at all.” says Sallie Cooke Pilot, Director of Corporate Reporting at Black Sun Plc.

“Our latest research also reveals compelling evidence regarding the lack of semblance between a company’s annual report and their sustainability report, particularly in the areas of risk reporting, non-financial KPIs and the strategic importance of CSR or sustainability.”

“Increasing press coverage on subjects such as climate change, treatment of suppliers and socially responsible investment, has demanded that all businesses push sustainability to the forefront of their agenda with a clearly articulated strategy which includes a commitment to acting responsibly in all business areas,” concludes Pilot.

Other key findings from the research include:

• Only 20% of companies document (in both reports) the governance structures in place to manage sustainability within organisation
• 30% refer to the materiality of sustainability in their sustainability report, with 8% mentioning it in their annual report and only 2% in both.
• 35% include social, environmental and governance (SEG) risks in their sustainability report, 33% in their annual report and 18% in both reports.

Black Sun will be publishing the research report later this month.
For more information or to obtain a copy, contact vwheelwright@blacksunplc.com.

For further information:
Sallie Pilot
Director of Corporate Reporting
Black Sun Plc
T: 020 7736 0011
E: spilot@blacksunplc.com

Notes to Editors

Black Sun Plc
Black Sun is one of the UK’s leading corporate reporting agencies. We help companies- from FTSE small caps to large global organisations- to build greater trust and confidence with their investors and other corporate stakeholders by growing, developing and creating value from their corporate reporting programmes.

As corporate reporting specialists, we are committed to exploring and understanding the area of narrative reporting to provide practical and intelligent advice on the approach to structure, content, and messaging of reports at a time of changing legislative and regulatory requirements, public policy discussion, and evolving stakeholder expectations.

We have an unrivalled depth of knowledge and experience of producing annual reports and reviews, CR reports, online reports and interactive corporate websites. Our current clients include: Acergy, Alliance & Leicester, Arla Foods, Atrium, BAE Systems, BG Group, Carphone Warehouse, Centrica, George Wimpey, Hanson, Hays, Imperial Tobacco, Legal & General, Punch Taverns, Standard Chartered, and United Utilities.

For further information about Black Sun:
David Christopherson
Black Sun Plc
T: 020 7736 0011
E: christophersond@blacksunplc.com

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