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REPORT 2006
TRENDS IN CR REPORTING 2005–06
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 Directions 06
Contents Trends in CR reporting
Welcome to Directions 06, a
2005–2006
02
Looking for corporate
responsibility behind the label
A report by salterbaxter
look at embedding corporate
by Rowland Hill, M&S
responsibility.
01
Welcome to
Directions 06

06
Corporate Responsibility: The holy grail of corporate responsibility has been
more than skin deep?
that this approach to doing business becomes an
Lisa Walden, internal
communications Nigel Salter, salterbaxter intrinsic part of a company’s day-to-day operations
nsalter@salterbaxter.com
consultant
10 and decision-making. Much head scratching has
Embedded
Tests
been done over the years to work out how to do it.
Has anyone had a breakthrough?

Lucie Harrild, salterbaxter

lharrild@salterbaxter.com

This year Directions has decided to put some
of the UK’s largest companies under the
microscope to see if corporate responsibility
17 is being embedded in the organisation. Has
anyone found the secret to injecting corporate
Embedded Tests
responsibility into the heart of an organisation
The winners
and seeing it circulate into every fibre?
Do the people get it? If it had happened,
would we know?
33 So we have run some tests on a select group
The panel’s within the FTSE 100 to see if corporate
winners responsibility is in their blood – right down
to seeing if the switchboard knows what we
are talking about! The tests are not diagnostic
– there are many things a company should
18 34
be doing in order to have embedded corporate
responsibility and some of the evidence could
The panel
Euro 250 and be confidential information – but turn to page
FTSE 100 Analysis 10 to draw your own conclusions.
Rowland Hill from Marks & Spencer talks about
the challenges M&S has faced in its quest to
embed corporate responsibility in the business
and in the brand. Lisa Walden, an internal
communications specialist, gives a view on
communicating corporate responsibility to
employees and ensuring the people
understand the strategy.
After the success of last year’s judging panel
we decided we needed an update on who
is reporting effectively, so the panel is back.
Ten experts have studied the FTSE 100 and
their findings start on page 18.
And last but not least we’ve researched the
FTSE 100 and EURO 250 to see what they
have produced this year.
Happy (and healthy) reading!

This year we have two contributors who

bring us the reality of embedding corporate
responsibility.

35
Euro 250 and
FTSE 100 Analysis
overview 48
About salterbaxter

DIRECTIONS 06 01
 The challenge is that many of the variety is supportive and well intentioned M&S CR team has done a lot of hand-
people with whom you work don’t. Some but in truth only active leadership can holding during the initial ‘getting to
of your colleagues will be CR-agnostic, a ‘cut through’ to the organisation’s strategy. know you’ phase.
minority might even claim to be anti-CR What I’ve learned is that if the senior team

Looking and worst of all are those obsessives

who want to use it to pursue their own
CR agenda. How do you keep everyone
aiming in the same direction through
the good times and bad?
aren’t in a position to provide leadership
on CR then you have to go and find it
elsewhere. Look to the non-executive
directors or perhaps the leader of an
important business division. What you’re
looking for is someone who is effective
All successful organisations have a clear
business strategy. You know the sort of
thing, to be the fastest, cheapest, best,
most reliable, most stylish etc. To my
mind the single most important piece of
information a CR practitioner can have is

for corporate responsibility At Marks & Spencer we clearly start

with a huge debt to our heritage in
that we’ve always had the ability to
within the organisation, ‘gets’ CR and
is respected.
the answer to the question: ‘How does CR
support our strategy?’ If you can answer
this with clarity, knowing which parts

behind the label attract ethically minded individuals as

Rowland Hill
Corporate Social Responsibility/
Sustainability Manager, Marks & Spencer
As you’re reading Directions
‘06 it’s probably fair to assume
that you’re someone who ‘gets’
customers, employees, suppliers and
shareholders. But over the last decade
the retail marketplace has undergone
significant change. Expectations and
personnel have all moved on and yet
on the whole we’ve managed to keep
CR moving forward in the right direction.
It hasn’t always been easy and there
have been times when we’ve had
to retreat from the odd battle in
order to win the war. Having tried
most approaches I’ll run through the
techniques that worked the best for us.
❝ Leadership is terribly
important... What you’re
looking for is someone
who is effective within
the organisation, ‘gets’
CR and is respected. ❞ unexpected sources can provide valuable
Leadership is terribly important. In various
capacities I’ve worked for M&S for nearly
a quarter of a century seeing out the old
family leadership up to the present day.
Next up is governance and processes.
Compared to many organisations M&S
places a greater reliance on its people
rather than its processes so I won’t dwell
here too long. You need to connect the
leadership of the business with its CR
performance and ensure stakeholder
engagement with appropriate responses.
It’s always easier to motivate people
if you can identify positive benefits
rather than the avoidance of risk. We’ve
put in a system with a Board level CR
Committee supported by a CR Forum of
senior managers and heads of department
across the business. That said, what we
achieve still depends hugely on the energy
and commitment of our people.
The quality of our relationships with
stakeholders is also hugely important.
Much of this is about basic courtesy and
acknowledging that sometimes the most
insights into your business. At its best
these relationships can help form and
even deliver your future strategies.
That said, many people in corporate life
can feel very uneasy about face-to-face
of the CR agenda really matter to key
stakeholders, along with the organisation’s
strengths and weaknesses I really believe
that you’re half way there. If the answer
doesn’t exist within the organisation go
out and start building a consensus about
what it might be. Constructing simple lists
of what it does and doesn’t include is a
really good starting point. At one point we
even had every part of the business with
their own little set of pictures showing the
issues that mattered. This kept focus and
prevented wasted energy in responding
to passing fads or distractions.
❝ Actions speak louder
than words. The behaviour
and deeds of an organisation
have to match up to the
rhetoric. ❞

Corporate Responsibility. During that time we’ve had both passive

and active leadership on CR. The passive
meetings with the likes of campaign
groups and over the last few years the

02 DIRECTIONS 06 DIRECTIONS 06 03
Actions speak louder than words. The
behaviour and deeds of an organisation
have to match up to the rhetoric. In
the long-term, organisations have to be
trusted to deliver on their services as
well as to act in the wider interests of
society. This needs not only to be visible
but increasingly to provide the option
for stakeholders to feel empowered by
participating in something positive. It
can be a community project, recycling
or choosing the ethical product.
Finally there is what I’ll call the Brand
X Factor. We live in a world of almost
limitless choice and increasing complexity. appeared the groundwork was being set
We can’t possibly review all the detail so
we use brands to help us make choices.
Even within the world of CR reports
the format, content, assurance and
even choice of assurance providers
all position our CR brand. Good brand
management has to be honest. One of
the reasons that ‘Your M&S’ has been
so successful for Marks & Spencer is that same as the most polluting
it genuinely reflects the way employees
and customers see the company. At once and unethical. The difference
you have a means of brand positioning
that rings true but also provides direction. produced and the level of
For us, part of this has also included what
is effectively a CR sub-brand called ‘Look
behind the label’. The genesis of ‘Look
behind the label’ was a result of the clear
direction provided by our Chief Executive,
Stuart Rose, and ideas that had been
04
formulated within the CR team over a
number of years. The concept is that we
are asking our customers to look beyond
the product that they see in the store and
consider all of the CR credentials that
we’ve addressed on their behalf. After all,
even the most sustainable product will look
much the same as the most polluting and
unethical. The difference lies in the way it
has been produced and the level of trust
in its provider. What made the campaign
so effective, however, were the skills in
execution provided by our colleagues in
marketing and communications. Almost
nine months before the first adverts
by using our customer research combined
with our CR Report to identify the overlaps
of high consumer expectations and good
M&S performance.
❝ Even the most sustainable
product will look much the
lies in the way it has been
trust in its provider. ❞
The drafting process required the
co-ordination of many different business
functions and we went out and consulted
with stakeholders such as environmental
DIRECTIONS 06
and animal welfare groups if we were
going to mention them or their campaigns.
In order to ensure that our employees
were informed we even launched the
campaign two weeks early behind
the scenes in our stores and everyone
received a key ring with copies of the
planned adverts on them.
‘Look behind the label’ has given us
an accessible means of talking CR with Our recent experiences suggest
employees and customers without the that the best outcomes are
technical jargon getting in the way. achieved by the CR holy trinity
of leadership, strategy and
Many of the traditional tools that CR marketing. This takes CR
practioners use such as governance, beyond the specialist functions
management and stakeholder engagement and cedes ownership to some
systems are clearly important. However, unorthodox functions such as
our recent experiences suggest that the marketing and communications.
best outcomes are achieved by the
CR holy trinity of leadership, strategy
and marketing. This takes CR beyond
the specialist functions and cedes
ownership to some unorthodox functions
such as marketing and communications.
In itself this is a challenge but perhaps
is the ultimate test of the oft-quoted
21st century cliché about CR being in
a company’s DNA.
DIRECTIONS 06 05
Corporate Responsibility:
more than skin deep?
Communicating and embedding a CR strategy internally can
be a bit like using an anti-ageing cream – it takes time for
the results to show and you have to keep rubbing it in.
Lisa Walden
Internal communications consultant,
and ex-Director of Internal
Communications, Prudential
At first, it seemed to go against the
natural order of things. Getting senior
managers to buy in to a CR strategy
that could challenge the very source
of a company’s profitability seemed
unlikely, if not a fool’s errand.
Pharmaceutical companies addressing
product safety concerns? Tobacco
producers focusing on youth smoking
prevention? But the angst-ridden
soul-searching battle was won
(in most cases).
If that was the public face of the
organisation, what lies beneath? The
company will have stated somewhere
what is on its conscience and how
prepared it is to do the right thing.
06
But is this enough for employees?
Employees have a view of the company’s
impact on society, the big issues, the
stakeholders’ perspective and even the
measures used to tackle CR. Surely this
must be positive. But is it enough? No.
The internal communications dilemma
From an internal communications
perspective, the role CR plays in the
business strategy is key to how deeply
employees are going to absorb the
message. Now we’re into tricky territory.
Declaring “it’s part of our strategy”,
means people will start looking for
connectivity – with the brand, product
development, training, customer
communications, and HR policy…
DIRECTIONS 06
❝ For internal
communications to be
believable, there has to be a
visible connection – even for
the cynics – between what’s
being said and “how we do
things around here”. ❞ Rubbing in the message
To be fair, it’s difficult. But that’s not
a reason to head straight for the easy
option of dropping a CR article into the
company newsletter (we’ll return to this
point). For internal communications to
be believable, there has to be a visible
connection – even for the cynics –
between what’s being said and “how
we do things around here”.
Frankly, it’s just not worth pursuing
employees as ambassadors and agents
of CR without absolute clarity about
three things on where CR fits in the
bigger picture. Firstly, what has it got
to do with the business we’re in, the
products/services we provide and
how does it stack up against our need
to deliver profit to the shareholder?
Secondly, how do CR targets or measures
fit with the business’ key performance
indicators – financial, customer
2
(x=y-z)
(as appropriate) and people (employees).
Thirdly, don’t forget the brand in all this –
it is essentially the corporate personality
so there has to be a rationale for how
people’s CR behaviours fit with it.
And another thing – there must be an
agreed principle that silence, if there’s
a crisis, is not an option.
Who and what carries the CR message?
Managers and a robust communications
infrastructure – the very same ones that
carry the business messages.
Fabulous newsletters may pave the
way to awards, but once the excitement,
not to mention the post-event hangover,
has faded, this starlet of internal
communications won’t get the message
under the skin of employees.
It wouldn’t be unreasonable to suggest
that the bulk of an employee’s source
of influence comes from the manager
whether we’re talking about acceptable
behaviours or believable information.
So how does an important email straight
from the CEO to all employees score on
the believability/impact scale? Lower
than the email that goes out to all
DIRECTIONS 06
❝
Fabulous newsletters may
pave the way to awards,
but once the excitement,
not to mention the post-
event hangover, has faded,
this starlet of internal
communications won’t
get the message under
the skin of employees.
❝
employees after the CEO has briefed
or at least communicated with all senior
managers in advance.
Seeping through
Infrastructure – a set of processes
for communicating specific types of
information using specific channels
(face to face briefing, email, voice
message, text, print, webcast, intranet)
in a standard and consistent way. It is
the only way to get deep down into
an organisation.
Why? Because it consistently pumps
through the organisation and restates,
over and over again, the same strategy,
the same connections… until consistency
instils common beliefs and ultimately…
common behaviours. That’s why managers
are excluded at the organisation’s peril.
❝ Successful CR depends
on a fully functioning
communications
infrastructure. ❞
The number of employees, sites and
the overall structure of the organisation
will inform how many channels or even
function-specific infrastructures are used.
07
The key is it all has to connect, which is
why often, it helps to have a centralised
internal communications team if an
organisation is implementing a strategy
that requires behavioural change.
So if successful CR depends on a fully
functioning infrastructure, it’s worth
checking to see if the following three
foundations are in place:
1. Straight-talking performance
updates:
• Monthly and quarterly processes to
communicate clear tangible progress
against objectives/targets.
• Details on where progress has not
been made and what’s being done
about it.
• Briefings face to face (or voice) using
a handy ‘pincer movement’ (i.e. tell
all employees their manager has the
information to brief them in the next
10 days).
2.Cascade processes:
• Detailed (specific names in boxes)
processes for how time critical/non
time critical announcements are
briefed in to the organisation (e.g
Stock Exchange announcements,
redundancies, product recall) – by
08
function, business segment, site. This
is essentially a logistics and e-based
exercise (no surprise there aren’t any
awards for this line of work).
3. Three agreements:
• One with the CEO/business director
(the ultimate in charge): to support
the infrastructure and not give any
senior managers permission to ‘opt
out’ (potentially tricky issue).
• One with the Finance Director and
sponsor of transformation programmes:
to provide the performance data and
commentary on time.
• One with the PR/Marketing/Marcomms
Director (the ultimate owners of all
external communications): to guarantee
any material or comment going to the
media and any customer or stakeholder
communications is copied/briefed in to
internal communications before
it’s released.
❝ Having alert employees
is one thing. Making
every employee an
ambassador and agent
of CR is another. ❞ their own ethical values?
DIRECTIONS 06
How deep are businesses
prepared to go?
Having alert employees is one thing.
Making every employee an ambassador
and agent of CR is another. It’s probably
fair to say that most companies are in
the former category rather than the
latter. However, the CR strategy sits with
the company’s core business strategy and
employees have to see and understand
the clear links between the two.
A final thought. It takes months of
constant attention and collaboration
with senior managers for internal
communications to effectively carry
a business strategy through an
organisation. Adding the complexities
of CR to the mix makes it tougher,
but if the CR strategy is well thought
through, the infrastructure can bring
it to life. Without it, the face the
company projects will be no more
than a mask.
❝
It can take months of
constant attention and
collaboration with senior
managers for internal
communications to
effectively carry a business
strategy through an
organisation. Adding the
complexities of CR to the
mix makes it tougher.
❝ all employees in the Virgin empire to operate and think in a way
DIRECTIONS 06
A few live scenarios to consider:
BP – probably the most impressive corporate citizen, provides
a dramatic illustration. The company has made a huge
investment to address safety concerns and minimise
environmental impact, but as the partial closure of the Prudhoe
Bay field in Alaska has proved, being a responsible corporate
citizen has not gone deep enough into the organisation.
Richard Branson has recently announced a move into
environmental businesses, known as the ‘Gaia Capitalism
Project’, starting with a company called Cilion that will make
environmentally friendly fuel. The question is, will he expect
that is aligned to this part of his business strategy – such as
environmentally friendly office systems and practices?
Or will environmental conscientiousness be kept within the
confines of project businesses?
Following its acquisition of Green & Black’s, is Cadbury
Schweppes shifting its brand values to align with those of Green
& Blacks and is anyone telling employees whether they are
expected to behave differently as a result?
To what degree will L’Oréal adopt The Body Shop’s product
development principles or will this business and its beliefs be
ring-fenced from the rest of the organisation? How will Body
Shop people feel about that – especially if the reason they come
to work is because they perceive their employer is aligned with
09
 Testing for
Embedded Is corporate responsibility embedded Corporate
Responsibility
Tests
Methodology in your blood?
If it really is running through your organisation’s
veins the symptoms should be recognisable!
We decided to run a few tests on a selection of companies
from the FTSE 100 to see how they are embedding CR. Our
panel of judges picked out the most effective reporters in
their sectors (see page 18) and we have used some of those
as our test group. This isn’t, of course, the definitive guide
to embedding CR but we hope it provides you with an
interesting insight into progress.

If you would like to talk to us about embedding CR please

get in touch!

So the white mice are:

Lucie Harrild
Head of CR Communications
Lucie Harrild, salterbaxter
lharrild@salterbaxter.com
Aerospace & Defence – BAE Systems Healthcare Equipment & Services and Health,
Pharmaceuticals & Biotech – Smith & Nephew
Banks – HSBC
Household Goods – Reckitt Benckiser
Beverages – Diageo
Media – ITV and BSkyB
Chemicals – Johnson Matthey
Mining – Rio Tinto and Anglo American
Electricity – Scottish Power
Non-life Insurance and Life Insurance –
Fixed Line Telecommunications and
Prudential
Mobile Telecommunications – BT
Oil & Gas – Shell
Food & Drug Retailers – Tesco
Real Estate – Land Securities
Food Producers – Unilever
Support Services – Wolseley
Gas, Water & Multi-utilities – United Utilities
Tobacco – British American Tobacco
General Financial – Man Group
Travel & Leisure – British Airways
General Retailers – Marks & Spencer

We tested the companies using the questions opposite, focusing on three areas
where an organisation might try to embed CR: strategy and management, brand
and product, and people. First of all we used publicly disclosed information to make
assessments. Then we spoke with the relevant person responsible for CR.

We wanted to see if CR was getting to the heart of the workforce, so decided to

check with the switchboard to gauge whether they had heard of CR (or sustainable
development). So to test the switchboard, we rang the switchboard!

10 DIRECTIONS 06 DIRECTIONS 06 11
Embedded Scottish Power Test Results:
Tests High Strategy & Management: High Scottish Power’s activities in the renewables
The results Brand & Product: High
market give it a lead in the brand and product
area with periodic marketing to support it. And
People: Medium as you might expect it has strong CR strategy
and management but the employee awareness
Overall: High programmes aren’t sufficiently powerful.

BT Test Results:

Key: Medium Strategy & Management: High Whilst BT run internal communications
programmes for CR, the switchboard weren’t
Brand & Product: Low connected. But the strategy side of things is
= High Embeddedness = Medium Embeddedness = Low Embeddedness People: Medium well integrated. An ad-hoc approach has been
applied to products being developed with CR
Overall: Medium issues in mind. But this might change soon.

BAE Systems Test Results: Tesco Test Results:

Medium Strategy & Management: High BAE systems have implemented the strategic
and management side of things. It is probably
Brand & Product: Medium unsurprising that CR doesn’t feature in
People: Medium marketing messages but it does in product
development – and defence export legislation
Overall: Medium requires it. Switchboard is run by an external
company and they give a seminar to
employees on CR.
High Strategy & Management: High Tesco have some impressive employee
communications activities across the
Brand & Product: High organisation, which have paid off – and the
People: High switchboard knew exactly what we were
talking about. Product developments and a
Overall: High range of external and internal communications
back up the CR strategy and management.

HSBC Test Results: Unilever Test Results:

Medium Strategy & Management: High HSBC’s strategy and management of CR
is constantly improving and has gradually
Brand & Product: Medium brought in more areas of the business and
People: Medium its functions in order to embed CR. Training
is increasing with programmes for new
Overall: Medium employees, graduates and very senior
management. But the switchboard didn’t
understand us.
High Strategy & Management: High Unilever has committed to significant
strategic leadership on CR. It is incorporated
Brand & Product: High into product development and features in
People: Medium advertising and marketing – “we don’t play
with your food”. Internal communications
Overall: High play their part too, but it hasn’t reached the
switchboard yet.

Diageo Test Results: United Utilities Test Results:

High Strategy & Management: High High scores for strategy and management
as well as brand and product – not surprising
Brand & Product: High given the focus on responsible drinking and
People: Medium alcohol in society. There is broad representation
of divisions, functions and geographical areas
Overall: High of the business on its corporate citizenship
committee. Unfortunately the switchboard
wasn’t up to speed.
Medium Strategy & Management: High
Brand & Product: Medium
People: Low
Overall: Medium
Strong strategy and management plus
activities in renewable energy are positive
for United Utilities. Advertising and sales
messages are given a light touch in terms
of CR as is employee communications and
it hasn’t reached the switchboard.

Johnson Matthey Test Results: Man Group Test Results:

Medium Strategy & Management: High Johnson Matthey seem to be more successful
with embedding CR in the senior parts of the
Brand & Product: Medium company with considered CR management
People: Low and senior staff trained in policy. However
other employees are less aware. But there
Overall: Medium are positive changes happening in the product
development area.
Medium Strategy & Management: High
Brand & Product: Medium
People: Medium
Overall: Medium
Man Group has put a lot of thought into
the structure of managing CR and it will be
interesting to see how that pays dividends
in the future. It can be a bit hard to grasp but
there is focus on how CR is integrated in the
products. There is a wealth of information on
the website and the intranet but switchboard
are none the wiser.

12 DIRECTIONS 06 DIRECTIONS 06 13
Embedded BSkyB Test Results:
Tests High Strategy & Management: High BSkyB is using its significant customer reach to
The results Brand & Product: High
roll out CR-relevant messages such as energy
efficiency and climate change. The CR strategy
People: Medium and management provide the company’s CR
framework and a taskforce of CR champions
Overall: High help to embed it through the business. As with
most companies we tested, switchboard drew
a blank.

Rio Tinto Test Results:

Key: Medium Strategy & Management: High Rio Tinto is creating strong management
structures and the stewardship programmes
Brand & Product: Medium mean CR is well integrated in the product area.
= High Embeddedness = Medium Embeddedness = Low Embeddedness People: Low However internal communication stays within
the upper layers of the management structure
Overall: Medium so there is little embeddedness there.

Marks & Spencer Test Results: Anglo American Test Results:

High Strategy & Management: High As we’ve heard earlier in this report, M&S are
working hard and creatively to embed CR and
Brand & Product: High convey it via the M&S brand. It is paying off.
People: Medium But interestingly the switchboard weren’t well
versed which unfortunately makes you wonder
Overall: High if shop floor can do justice to all that hard work.
Maybe that’s the next area that needs focus.
Medium Strategy & Management: High
Brand & Product: Medium
People: Medium
Overall: Medium
Anglo American has integrated CR through its
management structures and into all the stages
of its projects from feasibility to responsible
closure. It doesn’t really do advertising but
internal communications use various means
to tunnel CR into the organisation, though it
seems to have bypassed switchboard.

Smith & Nephew Test Results: Prudential Test Results:

Medium Strategy & Management: Medium Smith & Nephew have a bit of a sector
advantage – they have to factor in CR when
Brand & Product: High designing products to provide economic
People: Low and practical benefit to the healthcare
professionals. Plus marketing is heavily
Overall: Medium regulated. But it is missing a trick when it
comes to communicating with employees.
Medium Strategy & Management: High
Brand & Product: Medium
People: Medium
Overall: Medium
Effective CR strategy and management mean
Prudential leads from the front and it makes
every effort to communicate financial products
clearly to its customers, educating them on
financial planning. Some employees are given
CR training but it isn’t everywhere.

Reckitt Benckiser Test Results: Shell Test Results:

High Strategy & Management: Medium Reckitt Benckiser may score a medium for Medium Strategy & Management: High Shell, as you would imagine, has all the
strategy and management via this methodology management structures in place. And a
Brand & Product: High but believes its hands-on approach works better Brand & Product: Medium significant amount of its product development
People: High in its flat structure. It is working for internal People: Medium takes sustainable development into account.
communications, the switchboard talked about Whilst there are some very positive employee
Overall: High the CR training they receive. Overall: Medium training and communications programmes,
they exist in isolation.

ITV Test Results: Land Securities Test Results:

Medium Strategy & Management: High ITV uses its intranet, the Watercooler, to High Strategy & Management: High Land Securities has developed its CR with
give regular updates to employees on what a focused approach to its strategy and
Brand & Product: Medium is happening around the CR activities, and Brand & Product: High management, positive communications
People: Medium it gets plenty of attention. Viewers are People: Medium programmes and green building techniques.
surveyed on CR issues, aligning the brand Unfortunately the switchboard didn’t pick
Overall: Medium with the relevant issues. It seems integration Overall: High up those messages.
is developing, if not fully embedded.

14 DIRECTIONS 06 DIRECTIONS 06 15
Embedded Embedded Overall the companies we tested faired quite
Tests Tests well. Though they use a range of approaches
and CR programmes to do it, they all recognised
The results The winners
that CR must be embedded to be effective.
Interestingly of the 23 companies we tested,
only three switchboards were familiar with
corporate responsibility. Of the companies
achieving high scores, we felt these five stood
BSkyB out (in alphabetical order):
Key: Using its huge customer
network to communicate CR

= High Embeddedness = Medium Embeddedness = Low Embeddedness

Wolseley Test Results: Diageo

High Strategy & Management: Medium Judging by the scores it’s a hands-on approach
that’s having an effect. Wolseley have interesting Includes all geographic
Brand & Product: High areas and business
programmes such as the Sustainable Building
People: High Centre, a showcase for renewable building functions in CR thinking
materials, and promote energy saving and
Overall: High sustainable timber products. Switchboard
weren’t sure of the terminology but once it
was explained were quite knowledgeable about
office-based activities.
Marks &
British American Tobacco Test Results:
Spencer
Medium Strategy & Management: High CR and tobacco have always been controversial
bedfellows and BAT is clearly thinking hard Making CR a definite
Brand & Product: Low about how to embed CR in its strategy and brand value
People: Medium management. But the product is the product
and BAT does not see the corporate brand as a
Overall: Medium vehicle to carry CR messages. Employees are
surveyed on CR but that hasn’t reached them all.

British Airways Test Results: Tesco

Low Strategy & Management: High There are the management structures in
place to embed CR at BA but it seems they Extensive employee
Brand & Product: Low haven’t fed throughout the organisation as engagement activities
People: Low yet. CR is rightly represented by activities on
the environment, health and safety and the
Overall: Low community, and employees are told about
these, but that won’t equip them to champion
CR as a business strategy.

Unilever
A good all rounder and
willing to advertise

16 DIRECTIONS 06 DIRECTIONS 06 17
 My-L
iden inh is ta
t
and ifying su sked wit
and opportun stainabil h
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Top FTSE 100 The panel is back The judging Inve ainable a which companie ks
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the reporting activities of major companies and a Lucie

h Em
corpo as a backg co ily
judging panel gave their opinions on how effectively ra
comm te and conround in
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the FTSE 100 report on corporate responsibility. in Env ancy. She RI and CR
from Im ironm h
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work a s ibility rporate d r cia ien
With 49 of the FTSE 100 producing detailed reports there is t salte communic
rbaxte ations
ep lis ce
ort es
r Lucie ing in
now no denying that corporate responsibility reporting is here Head
of
Harril
d
salterb CR commu
to stay. Now it is a question of how effective those reports axter nicati
ons,
Em
are. The one-size-fits-all approach of one huge report looks Dir ily
ec
torO
like it might have had its day as 59 of this group use various CR sb
,
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na
combinations of web based and printed information to es
tio
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communicate values and activities. These refinements need er
in e wo rpor e
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a
to continue and progress for organisations to reach a point is
tt a
a P cy E lue c uttin and was
n f b p c ng nd
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where they are really communicating effectively. UK’s y co umb to d al re amm r of cil
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ike is Head o ial Responsib ds cli n-fin nce p me ess C lopm and
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te So re he le no sura team usin Deve ility
Corpora nction, whe managing
So here we have a new set of willing volunteers to give their (C S R ) fu
progra
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erform
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views on who is up to what this year. As before we set some rm
the fi nally he lea d s
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a CSR Mike K PMG for BCS ing w
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loose ground rules but gave the individuals a pretty free rein m
G
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to let us know what they think does and doesn’t work. Europe y a collabora ctices
tl Kirsty is an Associate Director at
curre 5 member pra
n
F&C Asset Management, one of
some 2 London’s largest institutional
investors with £107 billion under
management. She works in the
GSRI team where she covers the
banking sector and leads the
shareholder engagement Kirsty Jenkinson
programme on Human Rights. Associate Director,
Prior to joining F&C in 2001, Kirsty Governance and Socially
spent six years in London and Responsible Investment (GSRI),
New York with Goldman Sachs F&C Asset Management

d in
roun and
Nick ackg
Rules 1. The assessments should be based on information on manacoordina h as a b sultancyence. He
t
funct gement es the fu Mike egic con ue dilig ith the
company websites or in public reports available up to strat ercial d e years w t first ce
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3. The panellist’s decision is final (but please feel free al Inv n
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s erso
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to get in touch with us if you’d like to discuss it)

4. The panel aren’t actually doctors!

companies
Jenny works with keholders’
to research their sta
ations,
Please note the panellists’ views are their own personal views and not necessarily opinions and expect iety of
working across a var
those of their organisations or of salterbaxter le tors
nsib industry sec
spo
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qua
18 DIRECTIONS 06 DIRECTIONS 06 19
 Banks, perhaps more than any other sector, Bingley and Northern Rock to, say, Barclays
The sectors Sectors Page Sectors Page Banks: can feel that they are caught between a or Standard Chartered, is not particularly
rock and a hard place on CSR reporting. constructive.
Aerospace & Defence 20 Healthcare Equipment & Services and Alliance & Leicester While strict compliance requirements and
Banks 21 Health, Pharmaceuticals & Biotech 27 Barclays client confidentiality restrict information Consequently, I think it’s helpful to consider
Beverages 21 Household Goods 27 Bradford & Bingley flows, increasing public scrutiny of a sector the sector in a few sub-groups. Alliance &
HBOS representing 20% of the FTSE 100, and Leicester gets my vote among the ‘UK-focused’
Chemicals 22 Industrial Metals 28 wielding undisputed influence over the global
HSBC institutions for an easy-to-read yet detailed
Construction 22 Media 28 economy, means that the days of relative report that goes beyond a review of its
Lloyds TSB secrecy are well and truly over.
Electricity 23 Mining 29 philanthropic activities and tackles CSR in its
Northern Rock ‘Marketplace’. Standard Chartered and Lloyds
Fixed Line Telecommunications and Non-life Insurance and Life Insurance 29 Royal Bank of Scotland Thankfully, banks are rising to the challenge TSB also deserve a mention for pioneering
Mobile Telecommunications 23 Oil & Gas 30 Standard Chartered with many now finding a balance in CSR concise and punchy Corporate Responsibility
Food & Drug Retailers 24 Real Estate 30 reporting that both informs stakeholders and ‘Reviews’ which are heavy on numbers, targets
Food Producers 24 Software & Computer Services 31 protects commercial activity. This involves and results. However on balance, HSBC comes
Panellist: reporting on the indirect impacts of their out as overall winner for a report that sets its
Gas, Water & Multi-utilities 25 Support Services 31
Kirsty Jenkinson lending and other commercial activities as approach to Sustainable Development firmly
General Financial 25 Tobacco 32 well as their direct impacts. While there is within the Group’s overall strategic goals.
General Industries 26 Travel & Leisure 32 more to be done, most banks now make clear It grapples with the wide range of issues –
differentiations between, for example, the from corporate governance, sustainability
General Retailers 26
environmental performance of their branch risk, Equator Principles implementation and
networks and how they assess environmental treating customers fairly, to diversity, HIV/AIDS
issues when writing business. and carbon neutrality – facing a bank of its size
and international reach today.
All this being said, the actual content of CSR
reports still varies considerably from bank
to bank, as does progress in identifying and
managing sustainability related risks and
opportunities. To a large extent this reflects
both the different range of products and ➜ And the winner is:
services that the banks offer, and the
geographic reach of their business. For this HSBC
reason, comparing companies like Bradford &
A

BAE Systems is the only company in this
Aerospace & sector that publishes a full CR Report.
Defence: Smiths Group and Rolls-Royce focus primarily
on environment, health & safety and therefore
fail to address many of the key issues for this
BAE Systems sector such as business ethics, human rights
ARolls-Royce and lobbying.
Smiths Group
V As in previous years, BAE has continued
to make stakeholder feedback central to its
report. There are detailed comments from
Panellist:
Emily Osband external experts in four key areas – ethics,
employees, lobbying and education – followed
by the company’s response. This format
obviously works best when the external
reviewer provides challenging and insightful
commentary. The section on lobbying makes
for a good read with Robert Barrington, Director
of Governance and Socially Responsible
Investment F&C Asset Management, highlighting
strengths and weaknesses of the company’s
approach. The Q&As get top marks for honesty
– drawing attention to a government inquiry
A into allegations of false accounting and
corruption within BAE and media reports
relating to bribery. However, this makes for
slightly uncomfortable reading when they raise
more questions than they answer.
All three companies report comprehensively
on environment, health and safety – showing
clear performance trends. The quantitative
targets published by Smiths Group and
Rolls-Royce demonstrate a mature approach
to reporting in this area.
➜ And the winner is:
BAE Systems
All three companies prepare a CR report Firstly their report provides outcome and
Beverages: and all commission an external assurance performance evidence, such as the number of
Diageo
programme. Whilst some CR issues are
common to all three companies in the sector,
complaints made to the Advertising Standards
Authority and the proportion of advertising
SAB Miller others such as water shortages and HIV/AIDS spend focused on responsibility messages.
Scottish & Newcastle tend to be more specific. This is generally This effectively moves the report on – from
reflected in the CR reports. SABMiller one based on commitments and initiatives,
addresses a number of CR issues, giving to one which more clearly demonstrates the
equal space and emphasis to each one, whilst business benefit of good CR performance.
Panellist: Diageo and Scottish & Newcastle focus on
Matt Haddon responsible drinking as their key issue. Secondly the Diageo report is broader,
covering a wider range of issues such as the
Responsible drinking, as in 2005, is the company’s economic impact, employees and
dominant issue for the sector in 2006. All governance practices. It is a more complete
three companies recognise the issue and non-financial performance report.
the importance of their role in promoting
responsible behaviour. They also detail
management processes and initiatives they
have put in place, examples of memberships,
research, policy commitments and best
practices.
➜ And the winner is:
Diageo though, goes a notable step further Diageo
than the others, and is awarded first prize.

20 DIRECTIONS 06 DIRECTIONS 06 21
 All of these companies see CSR, and
Chemicals: particularly the environmental component of
CSR, as an opportunity rather than a cost and
BOC talk about future income streams from that
ICI source. Additionally occupational health and
Johnson Matthey safety features very strongly both in terms of
the targets set and also in the narratives from
the CEOs and Chairmen. This is quite right
given the hazardous products and processes
Panellist: with which they are all involved and the
Mike Kelly ambitions set, such as a target of zero
reportable accidents introduced by Johnson
Matthey or BOC’s simple zero incidents and
injuries is admirable.
The length of the BOC report is great and
proves you don’t have to destroy a couple
of forests every 12 months to produce an
effective document. Although it covers all the
main areas, the report is in danger of under-
selling what they are doing, even though it
gives a nod to GRI, the ABI, the UK’s Combined
Code and the provisions of the US Sarbanes
Oxley as well as the UN Global Compact.
It would be good to see future reports building
on the use of diagrams to communicate targets
and data, enabling the reader to easily gauge
performance improvements.
Hanson reports online, and is strongest in
Construction: the area of health and safety, where it gives
Hanson
trends on performance data showing sustained
improvements. It would be strengthened by
disclosing the targets set for future years.
The rest of the information is largely policy
Panellist: statements, although it does make the
link between its training initiatives and the
Jenny Dawkins business strategy, references to senior
management involvement and gives a few
interesting case studies.
There are a few role models for more
comprehensive reporting among the
construction companies outside the FTSE 100.
Companies like Lafarge, Barratt and Wates
produce standalone sustainability reports, and
tackle their core business impacts in areas such
as waste minimisation, using local suppliers and
local employees to contribute to local economic
development, and responsible purchasing e.g.
sustainable timber sourcing. The coverage of
the overarching aim of sustainable construction
A mere 18 pages – providing a snapshot of how it
V a comprehensive website that enables analysts
22 DIRECTIONS 06
ICI is straightforward, provides clear
performance data and again is of an easy
to read length and a somewhat easier to
digest format.
Johnson Matthey also has clear data, easily
understood, and even confirms support to
ILO conventions and the Universal Declaration
of Human Rights.
But the winner is Johnson Matthey, because
they also talk about difficult issues such as
animal testing.
Now what do they all think about REACH?
(the EU regulatory framework for the
Registration, Evaluation and Authorisation
of Chemicals)
➜ And the winner is:
Johnson Matthey
(looking to improve the ecological footprint of
buildings and the living standards they enable)
and contributing to sustainable communities
is particularly impressive. Wates also deserves
special mention for its initiative to employ
people aged 35 plus who are long-term
unemployed, ex-offenders and parents
returning to work. The inclusion of strategic
priorities, performance targets, stakeholder
dialogue and accreditation schemes such as
Investors in People and ISO 14001 are also
common strengths in these reports which
Hanson could emulate.
➜ And the winner is:
A “competing fairly” which is welcomed, and
Hanson
V report, which effectively conveys the company’s
Overall, reporting in this sector could be more
Electricity: imaginative when it comes to the design and
layout of reports. Future targets are not always
British Energy Group reported and apart from Scottish Power,
Drax Group reporting on stakeholder engagement is limited.
International Power
Scottish and Southern Energy Scottish Power’s Issue Briefings are in direct
response to stakeholder feedback; these and
Scottish Power
the individual performance summaries make
it easy to navigate through key issues.
The concise Summary Report provides a
Panellist: good punchy overview, while those wanting
Judith Luker more detail can turn to the full Community
and Environment reports, which slightly
confusingly also contain summary sections.
A Scottish and Southern Energy’s report is
diligent, if somewhat dense. It raises some
V important issues, including appropriate sales
and marketing techniques and the sector’s
role in reducing total energy demand. Extra
marks also for linking corporate responsibility
objectives to directors’ remuneration.
British Energy Group responds to feedback
from the previous report, and the document
is neat and concise. However, I felt it failed
Perhaps more than any other major sector in
Fixed Line the FTSE, telecoms continue to be buffeted by
Telecommunications the strong winds of technological change and
regulatory intervention. 02 is now part of the
and Mobile Spanish Telefonica group – although, for now, it
has maintained a high standard of separate CR
Telecommunications: reporting. In addition, Cable and Wireless has
fallen out of this year’s review; let’s hope that
the corporate turnaround currently underway
BT
will also extend to its CR programme.
Vodafone
That leaves the two telecoms behemoths,
BT and Vodafone, whose disclosure this year
Panellist: highlights two of the wider themes impinging
Nick Robins on the responsibility agenda: first, how to
manage the dance between the standalone
report and an in-depth website, and second,
how to connect transparency on CR with
disclosure through the annual report.
BT has made a refreshing contribution this year
with its Changing World: Sustaining Values
strategic CR priorities and performance in a
is anticipating future trends. This is backed by
to drill down to the detail. What is equally
impressive is how issues of reputation,
employee motivation and social responsibility
are dealt with in the main body of the
shareholder-directed annual report.
DIRECTIONS 06
somehow to make a connection with
the reader. The stakeholder engagement
information is chiefly focused on government
and the investment community.
International Power contains a lot of repetition
from the previous report. It highlights a few
philanthropic endeavours but there is no
hook into the core business. The stakeholder
engagement programme seems this time to
be limited to employee consultation.
Drax Group’s report is the weakest in this
category, with a narrow focus on environment
and H&S and limited accountability. It is,
however, nice and short!
➜ And the winner is:
Scottish Power
Vodafone has also continued the steady
evolution of its CR strategy and reporting,
with particularly good sections on the positive
contribution that mobile can make for emerging
markets, and on how the group is managing
the growth of potentially anti-social content
(such as adult content and gambling) on its
networks. Its “We said… we have… we will”
mantra also provides a strong spine around
which to present performance on its priority
indicators.
One area where CR disclosure could improve
is in the area of business ethics and marketplace
conduct. Telecoms is an extremely concentrated
market, bringing intense regulatory oversight,
with the potential for new interventions (such
as from the EU over roaming charges) as
well as investigations into anti-competitive
behaviour. BT does have a short section on
it would be great to see greater attention
to this from Vodafone next year.
All in all, a good crop.
➜ And the winner is:
BT
23
 Including some of the major supermarkets, this
Food & Drug sector is nothing if not high profile. Health and
Retailers: wellbeing has been a firm focus in recent years,
responding to popular preoccupation with the
‘o’ word (obesity). The sector also has some
Morrison Supermarkets other meaty issues to address including its
J Sainsbury supply chain, food miles, consumer information
Tesco and its impact on local communities.
Sainsbury’s and Tesco are the clear leaders
Panellist: in this sector. While Morrisons has developed
its reporting since last year and included some
Jenny Dawkins
useful measures in some areas, it is still way
behind the impressive and comprehensive
reporting of its rivals. There is little to choose
A between Sainsbury’s and Tesco – both reports
are well focused on the key impacts of the
V core business, and both include independent
comments, impressive measurement and
targets (especially on environmental issues),
with some great case studies thrown in.
Sainsbury’s gives good explanation of the
reasons behind the trends in many places and
the summaries of its performance against
quantified targets are particularly impressive.
Alliance Unichem and Boots Group merged during our research period. Alliance Unichem has not been judged here but
Boots Group appears in the General Retailers sector
Unilever’s is the only report to use the
Food Producers: internet effectively – the website provides
updated and more detailed information, with
A Associated British Foods quick links for different stakeholders. The
Cadbury Schweppes balance of offline/online content is good
V Unilever and makes the report far easier to navigate.
There are numerous examples of programmes
where corporate responsibility is really being
practised on the ground, making this the best
Panellist: example of a report where the organisation
Judith Luker is characterised by corporate responsibility.
It’s a refreshing change from the usual
self-referencing narrative about governance
procedures and filing-cabinet policies.
Cadbury Schweppes reports biennially, which
is sensible and reduces the risk of reporting
cycles becoming the focus rather than the by-
product of corporate responsibility activity.
However, its content is undermined by an
excessive use of illustration which somewhat
trivialises the issues under discussion, and by
its length. Its “two-speed approach”, through
data-rich inserts, is an innovative approach to
24 DIRECTIONS 06
Tesco edges ahead on its coverage of
stakeholder engagement, outlining the
processes used and actually summarising the
key opinions of each group – how rare! It is
also a bit more readable, and more open
about the challenges it faces, including these
in the introduction alongside its highlights.
The sector as a whole could include more
discussion of challenges – all are guilty to
some extent of skirting over the difficult issues
rather than giving open explanations of why
performance is below par and what they are
doing to address the situation.
➜ And the winner is:
Tesco
addressing the different information needs
of stakeholders but it doesn’t achieve its
objective of avoiding information overload
and doesn’t work as well as online/offline
cross-referencing.
The Associated British Foods report is by
far the weakest in this category, with an
over-reliance on governance and policies and
little evidence of real-life outcomes – which
gives it a feeling of remoteness.
➜ And the winner is:
Unilever
All the companies in this section are old hands • Two issues, human rights and climate change,
Gas, Water & at reporting and can display a string of awards feature in all reports and are addressed in a
Multi-utilities: for differing aspects of reporting over the
years. They have been through the range of
way that makes you think the companies are
serious at embedding this into the business
reporting styles from the 10 page review which
Centrica is all story-based, to the site specific data- Overall they are all mature in their reporting
National Grid heavy tomes in accordance with a complete and United Utilities appeals to me most as a
Severn Trent range of reporting standards and guidelines. very clear read and an account of highlights
United Utilities So taking a step back from the detail of the and lowlights.
reports to consider how these corporates are
changing led me to think of the following
common points:
Panellist:
Mike Kelly
• The majority are using the internet in a
smarter fashion – not just the odd pdf but
a range of reporting mechanisms to really
appeal to ‘an audience of one’, NGT are very
good at this
• There is a forward looking focus – how will
➜ And the winner is:
we make the business more durable in the
future – Severn Trent’s discussion on United Utilities
Adaptation is good
The General Financial sector is a bit thin on committee it is transparent and accountable,
General Financial: the ground for CR. each executive’s role and understanding is
demonstrated in each person’s own voice.
3i AMVESCAP is immediately knocked out of this There is also a level of self-awareness with the
Amvescap race as it doesn’t produce a report – there is admission that they operate in a “controversial
Man Group some explanation of its policies on the website. niche of the financial services sector”. And as
Schroders the report moves on to early disclosures of
So, to continue in reverse order: Schroders. data and objectives it proves that there is
A very brief document which unfortunately action behind the words. It will be interesting
to see updates on the commitment to include
reads like a policy document and is a half
Panellist: employees’ families in the carbon neutral plan.
hearted attempt. 3i, the private equity and
Lucie Harrild venture capital house is a slightly less boring
read as it seems to have thought a bit about
what CR means to 3i and recognises the
fact that its biggest impact is its investments.
There is a rather vague assertion that some
investments are turned down for environmental
and social reasons, but it sounds like they know
that more by chance than judgement. And that
just leaves us with Man Group which is much
more encouraging. Though a first report, it
clearly sets out the who, what, why, when and
how of Man Group’s approach and leaves the
➜ And the winner is:
reader in no doubt that it is being led from
the top, with commitment and understanding. Man Group
By having contributions from the CR
DIRECTIONS 06 25
 The scope of REXAM’s reporting is good –
General it covers most of the key issues you would
Industries: want from a manufacturer of consumer
packaging such as promoting eco-efficiency
REXAM
in the design process, minimising waste,
promoting health and safety, employee
training and supply chain management.
One issue that is not really covered is the
Panellist: implication of the company’s presence in
Jenny Dawkins developing countries, in terms of working
conditions, human rights, security and
local community development.
The annual report includes snapshots of
performance measurement, trends and
benchmarking against the industry standard
in key areas. The problem is that the more
detailed reporting on the website is out of date
and the standalone (and ironically named)
A
Last year saw Boots produce its first CSR
General Retailers: report – a publication relatively short on data
but accompanied by plenty of targets. How
Boots Group this summer’s union with Alliance UniChem
DSG International will affect the chemist’s reporting is yet to
GUS be seen, though the new company insists
Kingfisher that its commitment to responsible business
remains firm.
Marks & Spencer
Next
From merger to demerger. As GUS plans its
split into Argos and Experian, the retail and
business services group has produced what
Panellist: may be its last ever corporate responsibility
Mike Peirce report. Few are likely to mourn the demise
of this review – though there are many
worse CSR documents in print – which is
supplemented by separate reports on specific
policies such as conflict diamonds and socially
acceptable products.
DSG’s website is prettier and packed with
examples of action, but it’s hard to find many
targets except in the arena of environmental
performance. Whilst we learn about a range
of employee engagement initiatives, there is
little discussion of how staff, including senior
leaders, are being developed to address the
challenges identified by the company.
Next’s second-ever CSR report, covering the
period to January 2005, recounts some basic
information on the company’s governance
structure. A simple stakeholder approach is
26 DIRECTIONS 06
‘Environmental and social update’ is from
2004. You have to ask, if the company is
making the progress that the annual report
claims (the 2005 review “resulting in a more
extensive CR programme”) why doesn’t the
website reflect this, or at least say when new
information will be available?
➜ And the winner is:
A • All the companies continue to make steady
REXAM
V reporting, as well as the breadth
adopted for the report and, reasonably
enough, the greatest attention is paid to
supply chain issues.
The two stand-out reports in this sector
come from Kingfisher and Marks & Spencer.
Kingfisher’s strength is its emphasis on
process, particularly the elaboration of its
management tool – Steps to Responsible
Growth. The evidence highlights the leadership
role of B&Q in the group, though more could
be said about how the company is building
the team that will spread these achievements
across the group.
Marks & Spencer tells us more about progress
than systems. Its CSR report highlights almost
twenty key issues within the categories of
people, products and places. For each issue,
we learn about the key events of the last year,
what the company has achieved and what it
intends to achieve next year. M&S does give
a glimpse of the internal initiatives which it
is using to develop its people and company
culture, though more might be said on its
training for senior executives.
➜ And the winner is:
Marks & Spencer
Pharma has continued to dominate the
Health, headlines, with coverage continuing about
Pharmaceuticals product safety (GSK’s asthma drug had its
safety warning tightened whilst Astra had
& Biotech and to abandon two promising drugs), sales &
marketing practices (Abbot’s membership of
Healthcare the UK trade association was suspended for
unethical marketing practices), as well as
Equipment & about clinical trials (the disastrous Northwick
Services: Park trials which left all the volunteers in
hospital) to name but a few. The medical
equipment industry has also started to gain
AstraZeneca some press on similar issues (Smith & Nephew
GlaxoSmithKline has received an anti-trust subpoena from the
Shire Pharmaceuticals US Dept of Justice).
Smith & Nephew
What’s improving?
Panellist: progress with regards to the level of public
My-Linh Ngo • Shire deserves recognition for expanding its
issues reporting
• Congratulations to GSK and Astra for
starting to report on marketplace compliance
performance
What’s still work in progress?
• Disappointingly Smith & Nephew does not
report on product safety and marketing
practices to the detail the others do
• A small, but possibly important point relates
to the lack of reference to legal proceedings
on matters related to CR (you have to go to
the Annual Reports to find these). Is it me,
or does this not seem strange? Clearly this
The Household Goods sector consists of Reckitt
Household Goods: Benckiser, the cleaning and hygiene products
manufacturer and Persimmon, a housebuilder –
Persimmon very different companies with very different
Reckitt Benckiser corporate responsibility concerns which initially
makes you doubt the ability to compare them
and make a judgement.
Panellist:
However Persimmon’s report is rather
Lucie Harrild
perfunctory. Whilst the company lays out
an admirable no-nonsense approach to CR
and continues that view through the use of
straightforward language, the result is dry
and it is quite an effort to keep your attention
from wandering. This is a shame as there
are some good examples of going beyond the
CR ‘housekeeping’ of H&S and recycling into
innovative building projects using modern
materials to maximise environmental savings.
Now that Persimmon have acquired Westbury,
making it the nation’s largest housebuilder,
it should really look to go beyond just getting
the information out there and think about
how best to communicate with different
stakeholders and audiences.
DIRECTIONS 06
is an issue for other sectors as well, but
surely it is critical for such a regulated
health industry?
Future wish list?
• Better performance reporting please:
not just policy and process KPIs, but actual
performance ones which enable the reader
to judge the effectiveness of a company’s
CR practices
• Thankfully, the access to medicines debate is
broadening, with companies’ approaches to
middle income countries such as India, and
within industrialised countries (e.g. cancer
drug Herceptin in the UK) starting to gain
attention. More transparent about the global
strategy please
• Proactive genuine dialogue with stakeholders
about the numerous ethical challenges/
dilemmas in their business e.g. getting the
balance between risk vs benefits of taking
drugs, addressing the contentious disease
focuses (e.g. ADHD, anti-depression drugs),
emerging technologies etc.
Smith and Nephew is the winner overall for its
solid track record in reporting.
➜ And the winner is:
Smith & Nephew
So Reckitt Benckiser takes the number
one slot, if slightly by default. It is a report
that ticks the boxes in terms of relevant
headings: Primary Purpose, Tackling Climate
Change, Sustainability, Responsibility, Further
Information. But somehow it feels that it has
been written with a CR ‘dictionary’ beside the
author and rather than thinking about CR
and what it means to Reckitt Benckiser, some
worthwhile projects have had the CR lexicon
hurled at them so that they qualify for the
Sustainability Report. It’s a start but a good
example of a company on its CR journey, so
hopefully the future will hold something a bit
more insightful.
➜ And the winner is:
Reckitt Benckiser
27
 The Corus report has broad coverage,
Industrial Metals: quantified trend data which is well explained,
targets, benchmarks, and some interesting
Corus Group case studies. It is well-written with useful
performance summaries and shows evidence
of sector leadership and collaboration in
Panellist: some areas, such as reducing CO2 emissions.
Corus goes further than many global metals
Jenny Dawkins companies in discussing the core impacts of
its business, and illustrates the ‘sustainable
solutions’ in the form of product innovations
that it is pursuing in each of its main business
areas. Among the major metals companies
around the world, Alcan was the only one I
came across who did this better – theming
its innovations as responses to industry shifts
thereby linking it more closely with the business
strategy and wider sustainability issues.
Corus recognises that it needs to extend its
performance data and targets to the areas of
community and employee impacts, and there
are some places where other targets could
We are seeing real improvements in CR
Media: activities and reporting within the media
BSkyB
industry, and our UK companies are still
leading the pack.
ITV
Pearson What’s improving?
Reed Elsevier • Refreshingly, competition has opened up on
Reuters CR reporting – with the gap narrowing in terms
WPP of what is reported, the quality, and creative
approaches taken to make it accessible,
Yell interesting yet still address the key issues
• A positive by-product of the work of the UK
Media CSR Forum has been the development
Panellist: of a common framework for managing
My-Linh Ngo and reporting CR by media companies,
so facilitating benchmarking
• Both Reuters and ITV have revamped their
websites to better report on their CR activities
• Interesting to see that BSkyB has introduced
the approach of giving donations to charities
in return for comments on its reporting, as a
means of encouraging feedback – will be
interesting if this works
What’s still work in progress?
• It is good to see Reed Elsevier start to
address the issue of its association with the
defence sector (via involvement in organising
trade exhibitions in this industry), although
more debate is needed on this in future
• WPP also shows it’s not afraid to confront
issues about standards, marketing ethics and
obesity, but doesn’t address the issue
of clients in sensitive business activities,
or its role in drugs promotion
28 DIRECTIONS 06
be quantified or perhaps be more challenging.
Evidence of external stakeholder engagement
would strengthen the report, and some
areas could perhaps be covered more
comprehensively, such as workforce diversity,
the company’s response to skills shortages
and its management of its supply chain.
A Xstrata
V as far behind the crowd.
➜ And the winner is:
Corus Group
A
• Reporting on community activities still
doesn’t quite hit the mark for me – still too
much based in philanthropy, and not enough
on how such activities add value to the core
business itself
Future wish list?
• For media companies, managing people
is critical, and companies agree, regularly
stating that “employees are our greatest
asset”. But reporting has yet to really
demonstrate the added value gained by
the business from investment in staff
• More upfront, genuine dialogue with
stakeholders about the ethical challenges
and dilemmas in their business e.g. role of
the media in shaping/reflecting societal
values, corporate governance,
advertising/marketing ethics, off-shoring of
jobs, and so on. They may do well to learn
from the recent efforts of AOL in exploring
internet ethics with its customers
Winner: two if I may – the broadcasters – ITV
and BSkyB, both of which have come a long
way in reporting terms.
➜ And the winner is:
ITV and BSkyB
Strong commodity prices and the associated
Mining: rise in market values and new listings have led
to a rise from five miners in the FTSE 100 last
Anglo American year, to eight in 2006. The result is a much
Antofagasta bigger gap between the CSR leaders and those
BHP Billiton following behind.
Kazakhyms
Nevertheless, compared to other sectors
Lonmin
the general standard remains high. With
Rio Tinto
the exception of recently listed Kazakhyms,
Vedanta Resources all companies in the group prepare a CR/
sustainability report, and almost all obtain
third party assurance. Kazakhyms stands out
Panellist:
Matt Haddon Anglo American, Rio Tinto, Xstrata and BHP
Billiton continue to set the standard, not only
within the sector, but more broadly. They each
produced comprehensive reports highlighting
the key CR issues, their business performance
implications, their boundaries of reporting and
how these relate to financial reporting and
their broader economic impacts. There is also
an increased emphasis on performance, as
well as the usual commitments and process.
The sector continues to stand out, and its
progress in reporting in recent years is
impressive. This may in part be explained by
As a whole, the CSR reports and websites
Non-life Insurance from life and non-life insurance companies
and Life Insurance: stand up well to a comparison with their peers.
The communications provide a business case
for environmental efficiency and community
Aviva action, strategies and targets are outlined, and
Friends Provident a wide mix of internal and external assurance
Legal & General approaches and standards are adopted.
Old Mutual
Prudential But the reports produced by these companies
also typify the limitations of so many CSR
Royal & Sun Alliance
publications. Readers learn about corporate
objectives but gather little about the people
that will deliver them. Precious few words, for
Panellist: example, are devoted to how the companies
Mike Peirce are identifying the critical skills, experience
and attitudes that will enable them to achieve
their objectives, let alone the learning processes
that will embed these competencies in the
organisation. Reports touch on workplace issues,
but the connection is rarely made with how
employees can contribute to the achievement
of the organisation’s CSR objectives.
Aviva, for example, identifies three key CSR
issues: climate change, customer focus and
managing structural change. The report
provides detailed information on training,
which includes a leadership academy, but the
relationship of this training to these CSR
issues is not explained.
Royal and Sun Alliance also identifies its
interest in developing “the talent we need for
today and for the future,” and confirms that
“providing opportunities and experiences for
everyone to develop is a key priority”. Yet how
these opportunities will contribute to its CSR
goals remains a mystery to the outsider.
DIRECTIONS 06
a sector-wide response to the challenges of
sustainability – the International Council on
Mining and Metals’ Sustainable Development
Framework providing a well researched and
widely consulted standard to which many
miners have signed up.
More specifically, the Anglo report is well
structured and flows naturally through the key
issues presented, making it one of the easiest
reports to read. The BHP report is detailed
and comprehensive, though its length contrasts
with the focused nature of the Rio report which
stands out for its ability to get to the point. The
very high standard of reporting in this sector
makes selecting one winner difficult – Rio Tinto
and Anglo American share first prize.
➜ And the winner is:
Anglo American and Rio Tinto
Friends Provident bows to the trend for
identifying and outlining its material issues.
Like its peers, it describes a mix of advanced
and graduate leadership programmes; but yet
again, the link to corporate responsibility is
not explored.
Old Mutual’s approach to people management
is framed by the company’s objectives for black
economic empowerment. The latest available
report (published in early 2005) helpfully
acknowledges its poor performance in a Best
Company to Work For survey, as well as the
unearthing of major staff dissatisfaction
through a series of internal reviews. Facing this
challenge, the latest available report for the
company outlines a human capital model for
developing the full potential of its people.
Readers await the successor to this report to
identify progress.
Prudential, at last, provides a link between
workplace issues and CSR strategy. Detail
is limited, but we do learn of the piloting
of an e-learning tutorial; not only this, the
company plans to launch the tool with a
senior management population. It may just
be a few words, but hopefully this provides
a glimpse of a more positive aspect of
CSR reporting in the future.
➜ And the winner is:
Prudential
29
 This sector’s sustainability reporting is, of Both Cairn and BG Group give clever There hasn’t been much improvement in produces nothing. SAP has a few web pages
Oil & Gas: course, long-established and considered by summaries of their progress for each section. Software & Sage’s reporting over the past year. There of policy and a couple of achievements, but

BG Group
many to lead the field, so this is really the
battle of the heavyweight reports! And
BP they’re impressive – lots of tracking data
Cairn Energy against targets, discussion of the outcomes
Shell of stakeholder engagement, and examples
of where the companies have made a real
difference.
Panellist: But what makes them (mostly) readable is
Jenny Dawkins the focus on the key business issues – climate
change is the biggie, of course, and Shell does
particularly well in positioning this centre
stage. I was also impressed by BP’s section on
access to energy and Cairn Energy’s coverage
of the issue of water use, a pressing human
rights issue in one of their Asian sites. Shell
and Cairn Energy do best in giving an overview
of the particular issues facing their major sites.
A
BP deserve special mention for their clear
targets to increase the amount of renewable
Computer
energy generated in the next few years, and Services:
for their efforts to communicate sustainability
issues to a wider audience than just the report
readers (for communications in the widest Sage
sense they would get the gong!). But the prize
goes to Shell for sheer readability of reporting,
and for the inclusion of extensive external Panellist:
commentary – there is a great Q&A with the Lucie Harrild
CEO, asking all those difficult questions that
you would like to raise.
are a couple of pages in the annual report
and the website lists policies with a few
there is even less real-life activity with policy
as the main (but brief) feature.
top line achievements under headings of
Employment, Our Marketplace, Environment Sage would have to be the winner out of these
and Community. But it isn’t insightful. Sage UK three but I’d rather withhold the prize!
does produce a 15 page report which includes
forward looking targets and objectives, and
covers ethical business practices, suppliers,
customers and people. Unfortunately it is
all brief and perfunctory and there is no
contextual or illustrative detail so the reader
gets no feel for what is (or isn’t) going on.
As this sector is a group of one I’ve looked at ➜ And the winner is:
the EURO 250 for comparison but it is all very
disappointing. Two German companies become Sage
the competition, SAP and T-Online. T-Online

All of the companies are open about the V

challenges they face, and Shell and BP include
straight-talking acknowledgments of their
shortcomings. They are also good at explaining ➜ And the winner is:
the reasons for movements in the trends,
although more about their future plans for Shell
addressing problem areas would be useful.

The amount of information published by
Real Estate: each company in this sector is impressive.
All the reports are packed full of performance
BAA data and detailed action plans/targets which
British Land give the impression that CR is being taken
Hammerson seriously.
Land Securities
The key issue for real estate companies
Liberty International
is sustainable and green building design.
The extent to which the reports address
this issue varies. British Land appears to be
Panellist: leading the way with its Sustainability Brief
Emily Osband for new developments, which sets out a
process for integrating sustainability into the
design and construction of new buildings.
The other companies tend to report just one
off examples of green innovation – rather
than an overall strategy.
The Land Securities report is the most
engaging. A six page case study brings to
life the company’s efforts to minimise the
environmental impacts of a new high profile
office development at New Street Square
in London. It helps to demonstrate that
sustainability is not just for niche projects
and gives a glimpse of exciting possibilities.
As an airport operator, the issues faced by
BAA are obviously different. The report clearly
identifies climate change as the top issue
and sets out the company’s response to
this challenge – lobbying for aviation to be
included in the EU Emissions Trading Scheme
and setting up a charge and discount scheme
to reward airlines which use cleaner fleets.
All the companies (except Hammerson)
have stuck to the traditional printed format.
I thought that BAA struck a good balance
between print and web – with a 20 page
printed summary and more detail on the
website. With reports running at over 30
pages, Land Securities and British Land could
perhaps shift some of the detail to the web.
But for overall effectiveness Land Securities
is the winner.
➜ And the winner is:
Land Securities
This diverse sector includes companies
Support Services: specialising in areas such as outsourced
customer contact, distribution and waste
Brambles Industries management. But too often the couple of
Capita pages in the annual report devoted to
Wolseley corporate responsibility give bland statements
about community, environment, health and
safety which could frankly be made about
any company.
Panellist:
Jenny Dawkins More information is available online. Capita
has defined what responsibility means to the
company and gives example environmental
activities, performance data and targets.
Brambles Industries also gives environmental
performance data. In both cases, better
coverage could be given to social impacts –
more data and targets would be beneficial in
these areas. Brambles could also do with some
more recent case studies! The sector as a
whole could include more on their challenges,
and in an industry rife with acquisitions,
consideration could be given to the challenge
of aligning different business cultures.
Wolseley’s corporate social responsibility
report is a step ahead. It covers its major
impacts (the timber sourcing and fleet
management sections are particularly good),
gives a rationale for why they are important
areas for the business and demonstrates
some impressive progress (although figures
are sometimes patchy and could be presented
more meaningfully – how about some charts?).
Wolseley links responsibility issues to the
business strategy, for example in the area
of recruitment and retention, and highlights
examples where it has shown leadership in
sector initiatives.
➜ And the winner is:
Wolseley

30 DIRECTIONS 06 DIRECTIONS 06 31
 British American Tobacco (BAT) appears to be smoking and are clearly opposed to banning
Tobacco:
British American Tobacco
Gallaher
the most transparent – with a Group report of
over 130 pages plus local reports in around
30 countries. Now in its fifth year of reporting,
the Chief Executive reflects on some key
smoking in public places. Imperial Tobacco
states that ‘the statistical population studies
(epidemiology) which have led to claims that
other people’s smoke is a risk to health are
The winners
Imperial Tobacco achievements since its first report. Examples subject to methodological flaws.’ With an
include the introduction of international increasing number of governments worldwide
marketing standards, setting up the BAT introducing bans on public smoking, such
Biodiversity Partnership and the part played denial will obviously continue to fuel
Panellist: by the company in supporting the Eliminating allegations of irresponsibility.
Emily Osband Child Labour in Tobacco Foundation. It’s a
mature report, with clear action plans and The sector continues its search for the holy
targets. However with so much detail, I would grail of a harmless tobacco product – but there’s
have really liked a printed summary of key been little progress. BAT says the company is
points (like last year). working hard in R&D, but a less hazardous
smokeless tobacco that is placed behind the
Imperial Tobacco also publishes a pretty upper lip (which is banned across most EU
comprehensive report with clear objectives countries) seems unlikely to be its saviour.
and targets – running to 86 pages. A four page
➜ Aerospace & Defence ➜ Healthcare Equipment
executive summary on the website provides BAE Systems & Services and Health,
an overview of performance. Pharmaceuticals & Biotech
➜ Banks Smith & Nephew
Gallaher’s report is the easiest to read – it’s
the shortest (50 pages) and has the most HSBC
sophisticated design. However it lacks some ➜ Household Goods
of the substance of its competitors, with quite ➜ Beverages Reckitt Benckiser
broad and unchallenging targets.
Diageo
➜ And the winner is: ➜ Industrial Metals
Although all of the companies clearly
acknowledge that their products cause harm, British American Tobacco ➜ Chemicals Corus Group
they go on the serious defensive about passive Johnson Matthey
➜ Media
➜ Construction BSkyB
A ITV
Hanson
V
➜ Electricity ➜ Mining
Scottish Power Anglo American
Rio Tinto
The Travel & Leisure sector is a real mixed bag Investor Relations section and some is in the
Travel & Leisure: with planes, cruise ships, pubs, hotels, food, Corporate Information section of the website. ➜ Fixed Line
drink and gambling (with and without Telecommunications ➜ Non-life Insurance and
British Airways premises) all making an appearance. So that brings us to the gamblers and BA. and Mobile Life Insurance
Carnival PartyGaming doesn’t report and cites on Telecommunications Prudential
Compass Group Carnival (cruise ships) focuses on the the website its membership of GamCare, the
environmental side of things and its current charity which promotes responsible gambling. BT
Enterprise Inns
Intercontinental Hotels structure for governing the environmental Ladbrokes does report although the latest ➜ Oil & Gas
performance was developed in 2002 as part report includes Hilton Hotels which was sold in ➜ Food & Drug Retailers Shell
Ladbrokes
of a settlement with the United States February. However the Ladbrokes part covers
Partygaming government. And it shows – it is heavily based responsible gaming, employee development Tesco
Whitbread on maritime law and is a very internal facing (Ladbrokes Academy) and environmental ➜ Real Estate
document. Shockingly there is no health and issues and so the future looks encouraging. ➜ Food Producers Land Securities
safety information.
Panellist: Unilever
BA, perhaps unsurprisingly, comes out as the
Lucie Harrild Major gaps in disclosure continue to be a winner. But its reports for 2006 are surprising ➜ Software & Computer
theme – Compass has only two pages in – it has changed its reporting structure this ➜ Gas, Water & Services
its annual review and some policies on the year and is putting more information into Multi-utilities Sage
website. There is some information in the OFR the annual report. No bad thing in itself but
of 2005’s annual report but it is very poor for the transition looks messy with the CR report United Utilities
the size and impacts of the organisation. relegated to a series of pdfs which aren’t ➜ Support Services
accessible or engaging and some data will not ➜ General Financial Wolseley
The pubs and hotels are also hit and miss. be complete for this year. It would have been
better to concentrate on getting the web Man Group
Whitbread’s last accident figures are from
2002/2003. It does produce a brochure called pages looking right in order to lead readers ➜ Tobacco
‘Taking our responsibilities seriously’ but through the change. Hopefully next year will ➜ General Industries British American Tobacco
that doesn’t give much factual information. be clearer.
REXAM
Enterprise Inns only manages four pages in
the annual report, which are replicated on the ➜ Travel & Leisure
site. And Intercontinental Hotels is a work in ➜ And the winner is: ➜ General Retailers British Airways
progress as it says it will be communicating Marks & Spencer
more in 2006. Currently though it is quite British Airways
confusing, as some information is in the

32 DIRECTIONS 06 DIRECTIONS 06 33
 43 %
Analysis of We have made every effort to ensure that the Euro 250
Euro 250 data in Directions are accurate. and FTSE 100
and FTSE 100 The research is based on company websites and printed reports. Analysis overview
Every attempt was made to verify the data with each company
Methodology on the phone or via email. If we have missed data, please get
in touch and we will update our records.
of companies have independent
The categories we have chosen are not judgemental but verification statements
Research conducted by
the following rules and definitions were applied to ensure
Jo Sampson and salterbaxter a consistent approach.

1. The cut-off date

Our assessments are based on information
in the public domain by 1 July 2006.

2. The list of Euro 250 and FTSE 100

Companies
Taken from the Financial Times website
and dated 31 March 2006.

3. CR Report – years
Shows the number of years the company
has published either a CR Report, Sustainable
Development or EHS Report. Reports not
5. Independent verification statement
Report includes a formal verification/
assurance statement by third parties. We have
not counted informal comments by external
commentators.

6. FTSE4Good Index
Company included in any of the FTSE4Good
Index Series (Global, US, Europe, UK).

7. Dow Jones Sustainability Index (DJSI)

Company included in any of the DJSI series
(World, STOXX, EURO STOXX).
11. OFR
Shows if the company has produced an
Operating and Financial Review and titled it
as such.

12. Performance against environmental targets

The report covers a range of environmental
impacts and the company's performance data
is reported against specific targets for
continuous improvement.

13. Performance against social targets

The report covers a range of social impacts
59
report on the web
%
48 %
of companies are in the Dow Jones
Sustainability Index

archived in the company's website may not and the company’s performance data is
be counted. Mergers and acquisitions may 8. United Nations Global Compact (UNGC) reported against specific targets for

%
57
affect these data by reducing the number of Signatory to the United Nations Global continuous improvement.
years recorded. Compact.
14. The Euro 250 and FTSE 100
4. CR Report – format 9. Business in the Community Ranking The Euro 250 and FTSE 100 combined are a
Shows the format of the report ie printed group of 297 companies. This means that 47
%
47
Position in Business in the Community’s (BITC)
summary, printed in full, web report. We CR index. It is also noted when a company companies are in the FTSE 100 but fall outside
%
indicate if the report is limited in scope or
integrated within the annual report. We do
not count the following as reports: web pages
on CR which cover policies and programmes
(without time-specific performance
information) and single issue reports e.g.
declares it is a member but is not in the index.

10. Climate Leadership Index

Shows inclusion in the Climate Leadership
Index. The index is based on company
the EURO 250. The following charts and the
analysis overview lists information for the
group as a whole but separated by sectors
for ease of reference.
47
produce printed reports
of companies are in the
FTSE4Good Index
are signatories to the United
Nations Global Compact
responses to the Carbon Disclosure Project
on community, HIV, supplier diversity. and comprises the 60 “best in class”.

UK vs EURO:
We also had a quick look for trends in the use of printed reports and web reports in the UK and in Europe.

Printed reports in UK 49% Printed reports in Europe 37%

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71 — COMPANY NAME Fr 1 • • • • • –– –– –– • –– –– –– –– –– a) Comment b) More comment

KEY Yes a See comments CR/CSR = Corporate Responsibility/Corporate Social Responsibility AR = Annual Report EHS = Environment, Health & Safety m = Member of Business in the Community

34 DIRECTIONS 06 DIRECTIONS 06 35
Euro 250
and FTSE 100
Analysis

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Aerospace & Defence Banks (continued)

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Su

Su
Ve

FT

FT
Cli

Cli

Pe
Fu

Fu

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71 — EADS Fr 1 –– • –– • –– –– –– –– • –– –– –– • –– 62 — BANCA INTESA It 1 ––• –– –– –– –– –– –– • –– –– –– –– ––
106 26 BAE SYSTEMS UK 5 • • –– • –– • –– • –– m –– • • • 64 — KBC GROUPE B 2 • • –– • –– • • –– –– –– –– –– –– ––
178 42 ROLLS-ROYCE GROUP UK 8a –– • –– • –– b –– • –– 17= –– –– • –– a) Environment report only for 7 years and a H&S
report for 1 year. Information in AR
74 — NORDEA BANK Swe –– –– –– –– a –– –– –– –– • –– –– –– –– –– a) Developing web report
77 19 STANDARD
b) Verification of environmental data only
228 — SAFRAN Fr –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– Company created by merger in ’05, reporting cycle
CHARTERED UK 5 • • –– • –– –– • –– • –– –– –– • •
84 — SBERBANK OF
not yet reached
RUSSIA Ru –– –– –– –– –– –– –– –– –– –– –– –– –– –– ––
255 54 SMITHS GROUP UK 4 –– • • –– • • –– –– –– m –– • • • 88 — DEXIA B 5 • • –– –– –– • • • • –– • –– –– ––
Automobiles & Parts 90 — SAN PAOLO IMI It 4 • • –– • –– • • –– • –– –– –– • •
43 — DAIMLER CHRYSLER G 3 • • –– • –– –– ––• • –– • –– • • 96 — COMMERZBANK G 1 • • –– • –– –– –– –– –– –– –– –– –– ––
67 — BMW GROUP G 6a • • –– • –– –– • • • –– • –– • • a) 2 year reporting cycle, prior to that produced
single issue reports
105 — DANSKE BANK Den –– –– –– –– • –– –– –– –– –– –– –– –– –– ––
114 — ERSTE BANK Aus a –– –– –– –– –– –– –– –– –– –– –– –– –– –– a) Have begun reporting in AR with objectives to
80 — RENAULT Fr 5a a a –– • –– –– –– –– • –– –– –– • • a) 5 years, integrated with AR and web report increase it

94 — VOLKSWAGEN G 1 • • –– • –– • • –– • –– –– –– • • 115 — CAPITALIA It a –– –– –– • b –– –– –– –– • –– –– –– –– –– a) 1st report due in Sept 2006

b) Web report in Italian
156 — CONTINENTAL G a a a –– • –– ––• –– –– –– –– –– –– –– a) Information in AR and on website
116 — AIB Ire a a a –– –– –– –– –– –– –– m –– –– –– –– a) Information in AR for 3 years
157 — FIAT It 2 • • –– –– –– • –– –– • –– –– –– • •
170 — PEUGEOT Fr 3a • • –– • –– • • –– • m –– –– • • a) 1 year standalone, prior to that produced
132 — SVENSKA
HANDELSBANKEN
Swe –– –– –– –– • –– –– • –– –– –– –– –– –– ––
information in AR and on web pages
137 — BANK OF IRELAND Ire a a a –– • –– ––• –– –– m –– –– –– –– a) Information in AR for 3 years
Banks 139 — DNB NOR Nor 1 • • –– • –– • • –– • –– –– –– • •
4 1 HSBC UK 6 • • –– • –– • • • • m
• –– • • 141 — BANCO POPULAR Sp 3 • • –– –– –– • –– –– • –– –– –– –– ––
12 — UBS Sw 8a –– a –– • –– • • • • m
• –– • –– a) Produce environment reports only ESPANOL

14 6 ROYAL BANK OF UK 4 • • –– • –– • • • • m –– • • • 144 — SEB Swe –– –– –– –– • –– –– –– –– • –– –– –– –– ––

SCOTLAND 146 — MEDIOBANCA It –– –– –– –– –– –– –– –– –– –– –– –– –– –– ––
17 — SANTANDER CENTRAL
HISPANO
Sp 4 • • –– –– –– • • • • –– –– –– • • 151 — TURKIYE IS BANK Tur –– –– –– –– –– –– –– –– –– –– –– –– –– –– ––

21 — BNP PARIBAS Fr 4 • • –– –– –– • • • • m –– –– –– ––
159 — NATIONAL BANK
OF GREECE
Gre 10a a –– –– • –– –– • –– –– –– –– –– –– –– a) 10 years of Social Activities report
(printed & distributed to shareholders)
24 8 BARCLAYS UK 7 • • • • –– • • • a 3 –– –– • • a) Barclays Bank of Ghana only 165 — AKBANK Tur –– –– –– –– –– –– –– –– –– –– –– –– –– –– ––
25 — UNICREDITO ITALIANO It 6 • • –– • –– • • • • –– –– –– • –– 166 — FORENINGSSPARBANKEN Swe a –– –– –– –– –– –– • • • –– –– –– –– –– a) Produced reports in ’01 and ’02, now integrate
28 — BBVA Sp 4 • • –– • –– • • • • –– –– –– • • into AR – 4 pages

31 — CREDIT SUISSE Sw 12 a b–– • –– –– • • • m –– –– • –– a) Section in AR 185 — BANCA MONTE

DEI PASCHI
It 5 • • –– • –– • • • • –– –– –– –– ––
b) Various online reports: Energy and Material
Report, Milestones and Indicators, CSG and 187 — NATEXIS BANQUE Fr a –– –– –– –– –– –– –– –– –– –– –– –– –– –– a) 13 pages in AR ‘05
Society Report POPULAIRE
34 — SOCIETE GENERALE Fr 2 –– • –– • –– • • • • m –– –– • • 195 — EFG EUROBANK Gre 3 • • –– –– –– –– • –– –– –– –– –– • ––
35 9 HBOS UK 3a –– • –– • –– • • • –– 10= • –– • • a) Pre-merger Bank of Scotland and Halifax
produced reports
ERGASIAS

200 — RAIFFEISEN Aus –– –– –– –– –– –– –– –– –– –– –– –– –– –– ––

39 — DEUTSCHE BANK G 9 • • –– • –– • • • • m –– –– • • INTERNATIONAL

42 — CREDIT AGRICOLE Fr 3 • • –– • –– –– • –– • –– –– –– –– –– 206 — DEUTSCHE POSTBANK G 1 • • –– • –– –– • –– • –– –– –– –– –– Only information available refers to the group
(Postbank is part of Deutsche Post)
45 — ABN AMRO N 3 • • • • –– • • • • –– • –– • • 209 — ANGLO IRISH BANK Ire a –– –– –– • –– –– –– –– –– m –– –– –– –– a) Information in AR
48 12 LLOYDS TSB UK 9 • • • –– • • • • –– 10= –– • • –– 217 — BCP Por 1 • • –– –– –– –– –– –– –– –– –– –– –– ––
55 — FORTIS B/N 2 • • –– –– –– • • • • –– • –– –– ––

KEY Yes a See comments CR/CSR = Corporate Responsibility/Corporate Social Responsibility AR = Annual Report EHS = Environment, Health & Safety m = BITC member KEY Aus = Austria B = Belgium Cz = Czech Republic Den = Denmark Fin= Finland Fr = France G = Germany Gre = Greece Hun = Hungary It = Italy Ire = Ireland N = Netherlands Nor = Norway
Pol = Poland Por = Portugal Ru = Russia Sp = Spain Swe = Sweden Sw = Switzerland Tur = Turkey UK = United Kingdom

36 DIRECTIONS 06 DIRECTIONS 06 37
Euro 250
and FTSE 100
Analysis

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so form ntal ainst

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Euro 250 listing on the left Euro 250 listing on the left

n
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cia an
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su
tio
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ary
FTSE 100 listing on the right FTSE 100 listing on the right

an

an
en form

en form
try

try
4G

4G
ep

ep

ica
te

te
ep

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ed

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mm

mm
Cr

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GC

GC
tes

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un

un
SE

SE
ll r

ll r
int

int

int

int

rif
SI

SI
rif

R
r

r
r

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BIT

BIT
UN

UN
CR

CR
Banks (continued) Chemicals (continued)

OF

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OF

No
We

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DJ

DJ
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224 — BANCA NAZIONALE
DE LAVORO
It 4 • • –– • –– • • –– • –– –– –– –– –– 323 73 ICI UK 15a –– • • –– • • • • • –– –– • • • a) Produced a ’90-’95 review and then continued
to report annually
225 — ALPHA BANK Gre a –– –– –– • –– –– • –– –– –– –– –– • –– a) Have produced a Social Report for 5 years which
is a pdf of short excerpts from the AR
404 98 JOHNSON MATTHEY UK 4 –– • –– –– –– –– • –– –– m –– • • •
Construction & Metals
227 — PKO BANK Pol –– –– –– –– –– –– –– –– –– • –– –– –– –– ––
240 — BANCO DE SABADELL Sp 3 • • –– • –– –– –– –– • –– –– –– –– –– 103 — SAINT GOBAIN Fr a b b –– • –– –– • • • –– –– • –– –– a) Detailed report in AR since ‘02
b) 34 pages in AR
242 — BANCO ANTONVENETA It –– –– –– –– –– –– –– –– –– –– –– –– –– –– ––
124 — LAFARGE Fr 5 • • –– • –– • • • • ma –– –– • • a) Lafarge UK is a member of BITC
245 — BANCA POPOLARE
DI VERONA
It 3 • • –– –– –– • –– –– –– –– –– –– • • 127 — VINCI Fr a b c –– –– –– • –– • • –– –– –– –– –– a) Report in AR for 5 years
b) 41 pages in AR
247 — PEKAO Pol –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– c) AR on website and pdf of sustainable
development pages on website
256 55 ALLIANCE & UK 4 • • –– –– –– –– • –– –– m –– –– –– ––
LEICESTER 130 — CRH Ire 3 ––• –– –– –– • • • –– –– –– –– –– ––
279 63 NORTHERN ROCK UK 4 ––• • –– • • • –– –– –– –– • • • 135 — HOLCIM Sw 6a • • –– • –– b
• • • –– –– –– • • a) 3 reports have been produced in 2 year
reporting cycles
390 93 BRADFORD &
BINGLEY
UK 3 • • –– –– –– • • –– –– 52= –– –– • • b) Verification only covers CO2 emissions

Beverages
142 — BOUYGUES Fr a a a –– • –– –– –– –– • –– –– –– –– –– a) 56 pages of sustainable development report
integrated into AR
58 16 DIAGEO UK 7 • • –– • –– • • • • 48 –– • • • 186 — ACS Sp a b b –– • –– –– –– –– • –– –– –– • –– a) Detailed report in AR for 2 years
b) 54 pages integrated in AR with its own pdf
83 21 SABMILLER UK 9 –– • –– • –– • • • • m –– –– –– ––
89 — INBEV B 1 –– • –– –– –– –– –– –– • m –– –– –– –– a) Report is on a microsite
189 — HEIDELBERGCEMENT G 1 • • –– • –– ––• –– • –– –– –– • •
133 — HEINEKEN N 5 • • –– –– –– • • • • –– –– –– • • 218 — GRUPO FERROVIAL Sp a b b –– • –– • • • • c –– –– • –– a) Report in AR for 5 years
b) 30 pages in AR
140 — PERNOD RICARD Fr a a a –– b –– –– • –– • –– –– –– –– –– a) CR report integrated in AR (3 years)
b) Some time specific information but out of date
c) Amey is UK subsidiary and 75=

295 67 SCOTTISH &

243 — ACCIONA Sp 1 • • –– • –– • –– –– • –– –– –– –– ––

NEWCASTLE UK 5 –– • –– a –– • • –– • 56= –– • –– –– a) Website pages are the content of the report

260 57 HANSON UK 5 –– –– –– • –– –– –– –– –– –– –– –– –– ––

Electricity
Chemicals
61 — BASF G 17 • • –– • –– • • • • –– • –– • • 15 — EDF Fr 5a –– • •
b b –– • b –– –– –– • 29= –– –– • •
b b a) ’00 and ’02 information in AR
b) ‘04 most recent report and data available
85 — BAYER G 5a • • –– • –– • • • • –– • –– • • a) Began environmental reporting in ‘93
49 — ENEL It 9a • • –– –– • • • •
–– –– • –– –– –– a) Sustainability reports for past 4 years
109 — AIR LIQUIDE Fr 5 a a –– • –– • –– –– –– –– –– –– • • a) Sustainable development report integrated
into AR
72 — ENDESA Sp 5 • • –– • • –– • •
–– –– • –– –– ––

164 — AKZO NOBEL N 2a • • –– • –– • • • • –– –– –– • • a) CR information in AR since 2000, standalone

86 — UNIFIED ENERGY
SYSTEM
Ru 1 • •
a a –– –– • • –– –– ––
b –– –– –– • • a) Only in Russian
b) Summary in English
report for 2 years
168 — SYNGENTA Sw 3 • • –– a –– • –– • –– m –– –– –– • a) Website pages are the content of the report.
87 — IBERDROLA Sp 3 • • –– • –– • –– • • –– • –– • ––

184 43 BOC GROUP UK a –– b –– • –– –– • –– • 24= c –– –– –– a) CR information integrated in AR since ‘98

112 — FORTUM Fin 7a –– –– –– • –– –– –– • –– –– –– –– –– –– a) 6 yrs of Society report, now integrated in AR
b) Available to download: 10 pages in AR and 119 — CEZ Cz a –– –– –– a –– –– –– –– –– –– –– –– –– –– a) ’03 is last available report and web information,
submissions to BITC, Carbon Disclosure Project 4 pages in AR ‘05
and UNGC
c) Included in KLD’s Global Climate 100 Index
129 31 SCOTTISH POWER UK 10 –– • • • • • •
–– –– 20= • –– • •
232 — LINDE G 1 • • –– –– a –– –– –– • –– –– –– –– –– a) Website pages are the content of the report
148 34 SCOTTISH AND
SOUTHERN ENERGY
UK 7a • • • –– • • •
–– –– 7= –– –– • • a) 2 CR/Sustainability, prior to these reports
have been single issue or in AR
250 — SOLVAY B 14a • • • • • b b –– –– –– –– –– –– –– • • a) Environmental reporting only until ‘00.
Have produced 2 sustainability reports since ‘01.
173 — ENERGIAS DE Por 9a • • –– • –– • –– –– • –– –– –– • • a) 3 CR, prior to these reports have been in AR
PORTUGAL
Began reporting in ’96 but not on an annual
basis (4 reports over 10 years)
b) Summary produced in German, Italian,
212 — UNION FENOSA Sp 4 –– • • • • –– –– –– • –– –– –– –– ––

Portuguese and Spanish. Quantitative data

319 72 INTERNATIONAL
POWER
UK 4 –– –––– • –– –– • –– –– 44= –– –– • •
produced in English and French

KEY Yes a See comments CR/CSR = Corporate Responsibility/Corporate Social Responsibility AR = Annual Report EHS = Environment, Health & Safety m = BITC member KEY Aus = Austria B = Belgium Cz = Czech Republic Den = Denmark Fin= Finland Fr = France G = Germany Gre = Greece Hun = Hungary It = Italy Ire = Ireland N = Netherlands Nor = Norway
Pol = Poland Por = Portugal Ru = Russia Sp = Spain Swe = Sweden Sw = Switzerland Tur = Turkey UK = United Kingdom

38 DIRECTIONS 06 DIRECTIONS 06 39
Euro 250
and FTSE 100
Analysis

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so form ntal ainst

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Pe nme ce ag

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a
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Euro 250 listing on the left

n
Euro 250 listing on the left

n
kin

kin
Ind

Ind
rep

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vir an

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FTSE 100 listing on the right FTSE 100 listing on the right

an

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ep

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try

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4G

4G
ica

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BIT

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UN

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We

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CR

CR
Electricity (continued) Food Producers (continued)

OF

No

OF

No
DJ

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360 85 BRITISH ENERGY UK 3 • • –– • –– –– –– –– –– –– –– –– • –– 210 46 ASSOCIATED BRITISH
FOODS
UK 3 –– • a b a c –– –– –– –– –– –– –– –– a) Summary in AR
b) Case studies but no time specific information
394 94 DRAX GROUP UK a –– –– –– –– –– –– –– –– –– b –– • –– –– a) 4 pages in AR with data
b) Drax Power is a member of BITC
c) Available on request

Electronic & Electrical Equipment

234 — ORKLA Nor 10a –– –– –– • b –– –– –– –– • –– –– –– • –– a) 10 years of environment reports only
b) Web pages include social reports

19 — SIEMENS G 6a –– • –– –– –– • •
–– –– –– • –– –– –– a) Prior to ’00 produced single issue reports
Forestry & Paper
97 — ABB Sw 6a • • • • • • • • •b m –– –– • –– a) Prior to ’00 produced single issue reports
b) Foreign language summaries printed
194 — UPM-KYMMENE Fin 4a • • –– –– –– –– • •–– –– –– –– • • a) Prior to ’02 published environment reports only

101 — SCHNEIDER ELECTRIC Fr 3 • • –– • –– • –– • • –– –– –– • • 201 — STORA ENSO Fin 4a • • –– • –– • • • • –– • –– • • a) Prior to ’02 published environment reports only

Gas, Water & Multi-utilities

Fixed Line Telecommunications
22 — TELEFONICA Sp 4 –– • • –– • • • • • –– –– –– –– ––
23 — E.ON G 2 • • –– • –– –– –– –– • m –– –– –– ––

26 — DEUTSCHE TELEKOM G 7 • • –– • –– –– • • • –– • –– • –– Merged with T-Online June ‘06

51 — SUEZ Fr 7 • • –– • –– • –– –– • –– –– –– –– ––

41 — FRANCE TELECOM Fr 3a • • • • • –– • –– • –– –– –– –– –– a) Previous reports are for Orange and not available
52 — RWE G 9 • • –– • –– • –– • • 14= –– ––• •
46 — TELECOM ITALIA It 6 a
• –– • –– • • • • –– –––– • –– a) Report is integrated with AR
69 — GAZ DE FRANCE Fr 5 • • • • • • –– –– • –– –– ––• •
79 20 BT GROUP UK 14a –– • • • • • • • • 4= • • • • a) Single issue reports prior to ‘00
93 24 NATIONAL GRID
TRANSCO
UK 10 –– –– • • • • • • • 4= –– • • •
102 — KPN N 3 –– • –– –– –– • –– –– –– –– –– –– –– ––
110 — VEOLIA Fr 6 • • –– • –– • • • • 7=a –– –– • • a) Veolia Water UK only
125 — SWISSCOM Sw 6 –– –– • –– • •
a
• –– –– –– –– • –– a) Pdfs of pages in AR ENVIRONNEMENT

176 — PORTUGAL TELECOM Por 2 • • –– –– –– • • –– • –– –– –– –– –– 143 32 CENTRICA UK 6 a

• • –– • • • • • 44= –– • • • a) Available in large print, Braille, audio and digital
208 — TELEKOM AUSTRIA Aus 4 a –– •
a –– • • –– –– –– –– –– a –– a) ’04 is last printed report, ’05 report is web only 191 — GAS NATURAL SDG Sp 4 • • –– –– –– • • • • –– –– –– • •
213 — BELGACOM B a –– a –– –– –– –– –– –– –– –– –– –– –– –– a) Reports from a subsidiary, Proximus 229 50 UNITED UTILITIES UK 4 • • –– • –– • • • –– 17= –– –– • •
223 — OTE Gre 2 • • –– –– –– –– –– –– –– –– –– –– –– –– 343 82 SEVERN TRENT UK 12 –– –– • • • –– • • • 20= –– –– • •
Food & Drug Retailers General Financial
57 15 TESCO UK 5 • • –– • –– ––• • –– 16 • • • • 162 — GBL B –– –– –– –– –– –– –– –– –– –– –– –– –– –– ––
66 — CARREFOUR Fr 5 • • –– a –– • • • • –– –– –– • • a) Information on web pages but data is out of date 163 — DEUTSCHE BOERSE G a a a –– –– –– –– –– • • –– –– –– –– –– a) 3 pages in AR
197 — AHOLD N 8 • • –– a –– –– –– –– –– –– –– –– –– –– a) Information on web pages but not time specific 182 — INVESTOR Swe –– –– –– –– a –– –– –– –– –– –– –– –– –– –– a) Policy statement only
246 52 SAINSBURY (J) UK 10a –– • –– • –– –– • • –– 29= –– –– • • a) 3 years of CR reports, previously single issue 190 44 MAN GROUP UK 1 • • –– –– –– –– • • • –– –– –– –– ––
275 61 MORRISON (WM) UK 1 –– a –– –– –– –– –– –– –– –– –– –– –– –– a) Pdf of 3 page excerpt from AR 238 — JULIUS BAER Sw –– –– –– –– –– –– –– –– –– –– –– –– –– –– ––
SUPERMARKETS
270 60 3I GROUP UK a –– a –– –– –– –– –– • –– 81= –– –– • –– a) Pages from AR are downloadable as
389 92 ALLIANCE UNICHEM UK 1a –– • –– –– –– –– • –– –– –– –– • • • a) Merged with Boots July ’06. All this data is for
Alliance Unichem
separate pdf
305 69 AMVESCAP UK –– –– –– –– a –– –– • –– –– –– –– –– –– –– a) Policy statements and some details on
community involvement
Food Producers
11 — NESTLE Sw 4 a –– –– • –– b –– • • m –– –– –– –– a) Only Latin America produces written report
375 89 SCHRODERS UK 3 –– –– –– • –– –– • • –– –– –– • –– ––
b) Only environmental indicators verified
General Industrial
29 22 UNILEVER N/UK 10a • • –– • –– • • • • 31= • –– • • a) Combined Environment and Social report in ’05,
previously produced separately
169 — THYSSENKRUPP G 1a a –– –– • –– –– –– –– b –– –– –– –– –– a) Thyssenkrupp Steel has reported on
sustainability for 1 year, in print and on the
78 — DANONE Fr 8 • • –– • –– • –– • • ma –– • •–– a) Danone UK & Ireland is a member website (German only)
b) Thyssenkrupp Ascenseurs, France is
118 28 CADBURY SCHWEPPES UK 7 • • –– • –– • • • • 36= • • • • only participant
401 97 REXAM UK 3 a a –– • –– –– –– –– –– –– –– • • –– a) Last available report is ’04 as moving to
web based reporting which will launch end ‘06

KEY Yes a See comments CR/CSR = Corporate Responsibility/Corporate Social Responsibility AR = Annual Report EHS = Environment, Health & Safety m = BITC member KEY Aus = Austria B = Belgium Cz = Czech Republic Den = Denmark Fin= Finland Fr = France G = Germany Gre = Greece Hun = Hungary It = Italy Ire = Ireland N = Netherlands Nor = Norway
Pol = Poland Por = Portugal Ru = Russia Sp = Spain Swe = Sweden Sw = Switzerland Tur = Turkey UK = United Kingdom

40 DIRECTIONS 06 DIRECTIONS 06 41
Euro 250
and FTSE 100
Analysis

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rge ag

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ea
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a
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ex

ex
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–y
g

g
o

t
o

d
Euro 250 listing on the left

n
Euro 250 listing on the left

n
kin

kin
Ind

Ind
rep

rep
ort

ort

cia an
vir an
cia an
vir an
oo

oo
ort

ort
tio
su

tio
su
ort

ort
ary

ary
FTSE 100 listing on the right FTSE 100 listing on the right

an

an

en form
en form
ep

ep
try

try
4G

4G
ica

ica
te

te
ep

ep
ed

ed

ed

ed
rep

rep
mm

mm

o
Cr

Cr
o
GC

GC
br

br
tes

tes
ma

ma
un

un
SE

SE
ll r

ll r
int

int

int

int
rif

rif
SI

SI
R

r
r
r
r
BIT

BIT
UN

UN
We

We
CR

CR
General Retailers Industrial Metals (continued)

OF

No

OF

No
DJ

DJ

Pe
Co

Co
Su

Su
Ve

Ve
FT

FT
Cli

Pe

Cli
Fu

Fu
Pr

Pr

Pr

Pr
95 — HENNES & MAURITZ Swe 4 –– • –– • –– –– • • • –– –– –– • • 121 — MMC NORILSK NICKEL Ru 2a • • –– –– –– • –– –– –– –– –– –– –– • a) Titled Social Report but briefly covers
sustainability and environment
104 — INDITEX Sp 4 • • –– • –– • –– –– –– –– –– –– • ––
149 — METRO G 5 • • –– –– –– –– –– • a –– –– –– • • a) Metro Cash and Carry (subsidiary) only
199 — NOVOLIPETSK
FERROUS
Ru 4a a a –– • –– –– –– –– –– –– –– –– • –– a) Integrated with AR

153 35 MARKS & SPENCER UK 5 • • –– • –– • • • –– 20= –– –– • • 340 80 CORUS GROUP UK 3 • • –– • –– • –– –– –– –– –– –– • •

154 36 GUS UK 6 • • • –– • • • • –– 50= –– –– • • Industrial Transportation
172 — PPR Fr 4a b b–– –– –– • –– ––
c –– –– –– • • a) Biannual reporting. Next full report due ‘07
b) Detailed pages in AR which are downloadable 65 — A P MOLLER-MAERSK Den –– –– –– –– a –– –– –– –– –– –– –– –– –– –– a) Policies with brief information on
as separate pdf environmental achievements and
c) In French community involvement
248 53 KINGFISHER UK 5 –– • • • • • •
–– a –– 31= –– –– • • a) Summary and KPI update on website 81 — DEUTSCHE POST G 4a • • –– • –– • • –– • –– –– –– • –– a) ’06 is first sustainability report, previous 3 years
were single issue reports
329 77 NEXT UK 3a –– • –– –– –– • • –– –– m –– –– • • a) 2 reports in 3 years
372 88 BOOTS GROUP UK 7 • • • • –– –– • • –– 10= –– • • • Boots Group became Alliance Boots
158 — TNT N 2 • • –– –– –– • –– • • a –– ––• • a) TNT UK is a member
in July 06. This data refers to Boots Group
pre-merger
161 39 BAA N 17 a
• • –– • • –– • –– 2 –– • • • a) Individual airports produce printed reports
175 — AUTO ROUTES DU Fr 3 • • –– • –– • • –– • –– –– –– –– ––
380 91 DSG INTERNATIONAL UK 4 a –– –– • –– –– • • –– m –– –– • –– a) 6 pages in AR SUD DE LA FRANCE

Healthcare Equipment & Services

177 — AUTOSTRADE It 9 • •
a –– • –– • –– –– • –– –– –– • • a) Integrated with AR but also available
as standalone report
193 — SYNTHES Sw –– –– –– –– –– –– –– –– –– –– –– –– –– –– ––
179 — ABERTIS Sp 3 • • –– • –– • –– • • –– –– –– –– ––
215 — FRESENIUS
MEDICAL CARE
G a a –– –– b –– –– –– c –– –– –– • –– –– a) Information in AR
b) Environmental and animal testing policies only Leisure Goods
c) Included in ‘06 index after this research period
59 — PHILIPS ELECTRONICS N 4a • • –– –– –– • • • b c –– –– • • a) CR reports since ’02, single issue since ‘98
290 66 SMITH & NEPHEW UK 12 –– • –– –– a –– • • –– m –– • –– • a) Guide to report produced for employees b) Pakistan business is a signatory
c) Philips Electronics UK is a member
Household Goods
Life Insurance
98 25 RECKITT BENCKISER UK 6 • • a
• –– • • • –– 17= –– • • • a) Excerpt sent to shareholders
152 — HENKEL G 6 • • –– • • –– • • • –– –– –– • • 18 — ING N 6 • • –– • –– • • • a –– –– –– • • a) ING Bulgaria is a signatory

341 81 PERSIMMON UK 4 –– • –– –– –– –– –– –– –– –– –– –– • • 75 18 AVIVA UK 8a –– • • • • • • • • m –– –– b b a) 7 years of CSR reports and one environment

report in ‘99
b) Business Unit level targets included in
Industrial Engineering
web report
126 — VOLVO Swe 16a b –– –– • –– –– –– • • –– –– –– –– –– a) Began environmental reporting in ’90
b) Integrated with AR, 13 pages (since ’02)
82 — AEGON N 3 • • –– –– –– –– • • –– –– –– –– –– ––

145 — ATLAS COPCO Swe 5 • •

a a –– • –– –– –– • • –– –– –– –– • a) Integrated with AR but also available as
91 23 PRUDENTIAL UK 5 • • –– • –– –– • –– –– m –– –– • •
standalone report 128 30 OLD MUTUAL UK 5 • • –– –– –– a
• b c –– –– –– –– –– a) Black economic empowerment information only
b) Nedbank (South African subsidiary) only
180 — SANDVIK Swe 1 –– –– –– • –– –– • –– –– –– –– –– –– ––
c) Old Mutual Kenya is only signatory
216 — ALSTOM Fr 1 • • –– –– –– –– –– –– –– –– –– –– –– • 155 37 LEGAL & GENERAL UK 6a • • –– –– –– –– • • –– m –– • • • a) 2 years of environment reports prior to
235 — VALLOUREC Fr 3a a –– –– –– –– –– –– –– –– –– –– –– • –– a) 3 years of environment reports only 4 years of CSR reports
249 — MAN G 3a • • –– –– –– –– –– • –– –– –– –– –– –– a) Sustainability reports since ’03, prior to that
environment reports only
181 — CNP ASSURANCES Fr a a a –– –– –– –– –– –– • –– –– –– –– –– a) 4 years of reporting integrated with AR
239 — ALLEANZA It a –– –– –– –– –– –– –– –– –– –– –– –– –– –– a) Alleanza is part of Generali Group. Some of
its CR activities are included in Generali’s
Industrial Metals first report
68 — NORSK HYDRO Nor 7a b b –– • –– • • • • –– • –– • • a) CSR reports since ’99, environment reports
since ‘89
304 68 FRIENDS PROVIDENT UK 5 –– • –– • –– –– • • –– 36= –– –– • •
b) Integrated with AR
99 — ARCELOR Fr 4 a b –– • –– –– • • • –– –– –– • • a) Integrated with AR
b) Sustainable Development section of AR
available as standalone pdf

KEY Yes a See comments CR/CSR = Corporate Responsibility/Corporate Social Responsibility AR = Annual Report EHS = Environment, Health & Safety m = BITC member KEY Aus = Austria B = Belgium Cz = Czech Republic Den = Denmark Fin= Finland Fr = France G = Germany Gre = Greece Hun = Hungary It = Italy Ire = Ireland N = Netherlands Nor = Norway
Pol = Poland Por = Portugal Ru = Russia Sp = Spain Swe = Sweden Sw = Switzerland Tur = Turkey UK = United Kingdom

42 DIRECTIONS 06 DIRECTIONS 06 43
Euro 250
and FTSE 100
Analysis

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ite
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bs
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we

ts
ts
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Pe nme ce ag

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mm

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ex

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rep

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rep
–y

–y
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o
Euro 250 listing on the left

d
Euro 250 listing on the left

n
kin

kin
Ind

Ind
rep

rep
ort

ort

vir an
cia an

cia an
vir an

e
oo

oo
ort

ort
tio
su

tio
su
FTSE 100 listing on the right

ort

ort
ary

ary
FTSE 100 listing on the right

an

an

en form
en form
ep

ep
try

try
4G

4G
ica

ica
te

te
ep

ep
ed

ed

ed

ed
rep

rep
mm

mm
o
Cr

Cr
GC

GC
br

br
tes

tes
ma

ma
un

un
SE

SE
ll r

ll r
int

int

int

int
rif

rif
SI

SI
R

r
r

r
r
BIT

BIT
UN

UN
We

We
CR

CR
Media

OF

No

OF

Pe

No
Non-life Insurance

DJ

DJ
Pe
Co

Co
Su

Su
Ve

Ve
FT

FT
Cli

Cli
Fu

Fu
Pr

Pr

Pr

Pr
63 — VIVENDI UNIVERSAL Fr 7a • • –– –– –– • –– –– –– –– –– –– –– –– a) ’99 was an environment report only 32 — ALLIANZ G 5 ––• • • • –– • • • –– • –– • •
108 45 REED ELSEVIER N/UK 5 –– • –– • –– a
• • • 42= –– • • • a) Only environmental data is verified 33 — AXA Fr 3 • • –– • –– –– • –– • m –– –– –– ––
147 33 BRITISH SKY
BROADCASTING
UK 5 • • –– –– –– a
• • –– 85 –– • • • a) Only environmental data is verified 53 — GENERALI It 1 • • –– –– –– –– –– –– –– –– –– –– –– ––
73 — ZURICH FINANCIAL Sw a a –– –– • –– –– • • –– m –– –– –– –– a) 4 pages in AR
167 — WPP GROUP UK 3 • • –– • –– –– • • –– m –– • • • SERVICES

183 — MEDIASET It –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– 76 — MUNICH RE G 6 a a –– • –– ––• • –– –– • –– –– –– a) SRI report and environment report

221 48 PEARSON UK 3 –– • –– • –– a
• • • 24= –– • • –– a) Only environmental data is verified 107 — AGF F 5a • • –– –– –– • • • • –– –– –– –– –– a) 2 years of standalone reports, before then
it was integrated in AR
222 — LAGARDERE GROUPE Fr 1 a a –– –– –– –– –– •–– –– –– –– –– –– a) Integrated with AR, focused on social issues
263 58 REUTERS UK 5 –– –– –– • a –– • • –– m –– • • • a) Summary in AR
111 — SWISS RE Sw 8 • • –– • –– a
• –– –– –– • –– • –– a) Only verified CO2 emissions

282 64 ITV UK 3 • • –– –– –– • • • –– 42= –– –– –– ––

138 — RAS It 2 • • –– –– –– • • • –– –– –– –– –– ––

348 83 YELL GROUP UK 3 • • –– • –– –– • • –– m –– • • • 204 — SAMPO Fin 4 –– • –– –– –– –– • –– –– –– –– –– –– ––

Mining
327 75 ROYAL &
SUN ALLIANCE
UK 6 –– • –– –– –– • • –– –– 96= –– –– –– ––

40 10 ANGLO AMERICAN UK 6 • • • • • •
–– –– –– 31= • –– • • Oil & Gas Producers
47 11 RIO TINTO UK 10 –– • • –– • • –– • • 39= • –– • • 1 1 BP UK 12 • • –– • –– • • • • m
• –– a a a) Some site and country specific reports
56 14 BHP BILLITON UK 11 –– • • –– • • • • • 24= • –– • • give targets
120 29 XSTRATA UK 4 • • –– • –– • –– • a –– –– • • • a) Included in ‘06 after this research period. 2 2 ROYAL DUTCH SHELL UK 9 • • –– • –– • • • • m
• • • •
277 62 KAZAKHYMS UK a –– –– –– –– –– –– –– –– –– –– –– –– –– –– a) Company formed ‘05 so reporting cycle 3 — GAZPROM Ru a –– –– –– –– –– –– –– –– –– –– –– –– –– –– a) One environment report in ’02, ’05 has 3 pages
not yet reached in AR
316 71 ANTOFAGASTA UK a a b –– –– –– –– –– –– –– –– –– –– –– –– a) 3 years of reporting in AR
b) Excerpt from AR is downloadable as pdf
5 — TOTAL Fr 5a • • –– • –– b
• • • m –– –– • • a) Total and Elf merged in ’00 and have produced
reports since. Both companies produced
environmental reports before ‘00
328 76 VEDANTA RESOURCES UK a a b –– –– –– • –– –– –– –– –– –– –– –– a) 2 years of reporting in AR
b) Excerpt from AR is downloadable as pdf
b) Only certain indicators verified

349 84 LONMIN UK 5 • • –– • –– • • • –– 78= –– –– • • 13 — ENI It 5 • • –– • • –– –– • a –– –– –– –– –– a) 18 pages in AR, separately downloadable

Mobile Telecommunications
27 — LUKOIL Ru 1a • • –– • –– • –– –– • –– –– –– • –– a) Reporting cycle is biannual
36 — STATOIL Nor 5 • • • • • • • • • –– –– –– • •
10 5 VODAFONE UK 6 • • –– • –– • • • –– m –– –– • • 37 — SURGUTNEFTEGAS Ru a a –– –– –– –– –– –– –– –– –– –– –– –– –– a) 12 pages in AR
92 — TELIASONERA Swe 1 –– • –– –– –– –– • –– –– –– –– –– ––• 60 17 BG UK 9 • • –– • –– • • • • –– –– • • •
134 — TELENOR GROUP Nor 5 –– –– –– • –– –– • • • –– –– –– –– –– 70 — REPSOL-YPF Sp 10a • • –– • –– • • • b –– –– ––• • a) ’96 to ’01 were environment reports only
188 — MOBILE TELESYSTEMS Ru –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– b) Included in ‘06 after this research period

207 — TURKCELL Tur –– –– –– –– a –– –– –– –– –– –– –– –– –– –– a) Some information on community and

education activities
123 — OMV Aus 4 • • –– • • • –– –– • –– –– –– • •
174 — PETROLEOS (CEPSA) Sp 3 • • –– –––– • –– –– • –– –– –– –– ––
196 — TATNEFT Ru –– –– –– –– –– –– –– –– –– –– –– –– –– –– ––
214 — NOVATEK Ru 1 • • –– –– –– • –– –– –– –– –– –– –– ––
220 — MOL MAGYA Hun 4 • • –– • –– –– –– –– • –– –– –– • •
379 90 CAIRN ENERGY UK 6 • • –– –– –– • • –– –– 81= –– –– • •

KEY Yes a See comments CR/CSR = Corporate Responsibility/Corporate Social Responsibility AR = Annual Report EHS = Environment, Health & Safety m = BITC member KEY Aus = Austria B = Belgium Cz = Czech Republic Den = Denmark Fin= Finland Fr = France G = Germany Gre = Greece Hun = Hungary It = Italy Ire = Ireland N = Netherlands Nor = Norway
Pol = Poland Por = Portugal Ru = Russia Sp = Spain Swe = Sweden Sw = Switzerland Tur = Turkey UK = United Kingdom

44 DIRECTIONS 06 DIRECTIONS 06 45
Euro 250
and FTSE 100
Analysis

ite

ite
bs

bs
ort

ort
we

we

ts
ge aga ts
e

ite
rep

ep

so form ntal ainst

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t
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l ta ce arge
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ts ains
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on
bs

yr
eb
rs

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we
ort

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g
Pe onm ce ag

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r

t
t
nw
ea

ea
a

Pe onm ce a
rt

ort
mm

mm
ex

ex
ts
rep

on

rep
–y

–y
g

g
o
Euro 250 listing on the left

d
Euro 250 listing on the left

n
kin

kin
Ind

Ind
rep

rep
ort

ort

vir an
vir an

cia an

cia an
e
e
oo

oo
ort

ort
tio
su

tio
su
FTSE 100 listing on the right

ort

ort
ary

ary
r
FTSE 100 listing on the right

an

an

en form
en form
ep

ep
try

try
4G

4G
ica

ica
te

te
ep

ep
ed

ed

ed

ed
rep

rep
mm

mm
Cr

Cr
GC

GC
br

br
tes

tes
ma

ma
un

un
SE

SE
ll r

ll r
int

int

int

int
rif

rif
SI

SI
R

r
r

r
BIT

BIT
UN

UN
We

We
CR

CR
Oil Equipment & Services Support Services

Pe
Pe
OF

No

OF

No
DJ

DJ
Co

Co
Su

Su
Ve

Ve
FT

FT
Cli

Cli
Fu

Fu
Pr

Pr

Pr

Pr
237 — SAIPEM It 10 • • –– –– –– • –– –– –– –– –– –– • • 171 41 WOLSELEY UK a a a –– • –– –– • –– –– –– –– • –– –– a) Report in AR for 3 years

Personal Goods
230 — ADECCO Sw 2 • • –– • –– –– • –– • m –– –– –– ––

44 — L’OREAL Fr 4 • • –– –– –– • • • a –– –– –– • • a) Included in ‘06 after this research period

400 96 BRAMBLES
INDUSTRIES
UK 3a a b –– • –– –– • • –– –– –– –– –– –– a) Report in AR for 3 years
b) 6 pages in AR, separately downloadable as a pdf
54 — LVMH Fr 5a b b –– • –– c
• • • d –– –– • –– a) 5 years of environment reports
b) Sustainable development report integrated
419 100 CAPITA UK 4a b –– –– • –– –– • –– –– –– –– –– –– –– a) Report in AR for 6 years and web report for 4 years
b) 8 pages in AR
with AR
c) Verification only applies to environment report
Technology Hardware & Equipment
d) LVMH Watch and Jewellery UK is a member
100 — RICHEMONT Sw –– –– –– –– • –– –– –– –– –– –– –– –– –– ––
16 — NOKIA Fin 9a ––• –– • –– –– • • • –– –– –– –– –– a) 4 years of CR reports and 5 of environment

136 — CHRISTIAN DIOR Fr a a a –– –– –– –– • • • –– –– –– –– –– a) Integrated with AR

38 — ERICSSON Swe 13a • • –– • –– –– • • • –– –– –– • –– a) 5 years of sustainability reports and
8 of environment
192 — LUXOTTICA It –– –– –– –– –– –– –– –– –– –– –– –– –– –– ––
113 — ALCATEL Fr 4 • • • • • • • • • –– –– –– • •
202 — BEIERSDORF G 3 –– • –– –– –– –– –– –– –– –– –– –– –– ––
150 — STMICROELECTRONICS Fr 5 • • –– –– –– • • • • –– –– –– • •
233 — SCA Swe 8 • • –– –– –– a
• • –– –– –– –– • –– a) Verification only applies to environment data
244 — ASML HOLDING N 7 –– • –– –– –– –– • • –– –– –– –– –– ––
236 — SWATCH GROUP Sw –– –– –– –– –– –– –– –– –– –– –– –– –– –– ––
Tobacco
241 — ADIDAS-SALOMON G 6 –– • • • • –– • • –– –– –– –– • •
Pharmaceuticals & Biotechnology
50 13 BRITISH AMERICAN
TOBACCO
UK 5 a • b
• –– • • • –– 31= –– –– • • a) Available on request for those without web
access
b) 2 page summary sent to shareholders, directing
6 4 GLAXOSMITHKLINE UK 6 • • • –– • a
• • b m
• • • • a) Verification applies to EHS sections only
b) GSK in Bulgaria, Pakistan, Romania and Ukraine
them to website
are signatories 117 27 IMPERIAL TOBACCO UK 5 • • –– • • • –– • –– 64= –– • • •
7 — NOVARTIS Sw 8 a b –– • –– • –– • • –– –– –– • • a) Report is integrated with AR
b) Separate GRI report is downloadable
203 — ALTADIS Sp a a a –– –– –– –– –– –– –– –– –– –– –– –– a) 10 pages in AR downloadable as separate pdf
258 56 GALLAHER UK 5 • • –– • –– –– –– –– –– 78= –– • • •
8 — ROCHE Sw 14 a
• –– • • • ––
a –– –– –– –– • • a) Report is integrated with AR
Travel & Leisure
9 — SANOFI-AVENTIS Fr 2 • • • –– • • –– •
–– –– –– –– –– ––
20 7 ASTRAZENECA UK 6 –– –– • • • • • • –– 39= –– a
• • a) Applied best practice principles of OFR
198 — OPAP Gre 1 • –– –– –– –– –– –– –– –– –– –– –– –– ––

122 — SCHERING G 4 • • –– –– –– –– • –– –– –– –– –– –– –– 205 — ACCOR Fr a a –– –– • –– ––• • • m –– –– • –– a) Reporting in AR for 4 years

131 — NOVO NORDISK G 11 a –– • –– • • • •

a –– • –– • • a) Integrated with AR
226 49 LADBROKES UK 4a –– • –– • –– • • • –– 56= –– • –– –– a) Reported as Hilton plc, recently sold hotel
division and is now Ladbrokes plc
307 77 SHIRE UK 3 • • –– –– –– –– • –– –– 75= –– –– • • 231 51 CARNIVAL UK a –– a –– –– –– –– • –– –– –– –– –– –– –– a) 1 year of environmental reporting
Real Estate 264 59 PARTYGAMING UK –– –– –– –– –– –– –– –– –– –– –– –– • –– ––
160 38 LAND SECURITIES UK 5 • • • • • • • • –– m –– • • • 283 65 COMPASS GROUP UK –– –– –– –– a –– –– • • • m –– • –– –– a) Policy and community information only
219 47 BRITISH LAND UK 4 • • –– • –– • • • –– m –– • • • 326 74 INTERCONTINENTAL
HOTELS
UK –– –– –– –– a
• –– • –– –– –– –– • –– –– a) Policy and community information only
334 79 LIBERTY UK 4 • • –– • –– • • –– –– 68= –– • • •
INTERNATIONAL 332 78 BRITISH AIRWAYS UK 16a –– –– –– • b
• • • –– 78= –– –– • • a) Changing reporting structure to integrate with AR
b) ’06 report is an interim report in
370 87 HAMMERSON UK 3a –– –– –– • –– –– • • –– m –– –– –– –– a) Last available report is ’04, next report will
be a web report
downloadable pdfs
396 95 ENTERPRISE INNS UK a a –– –– –– –– –– –– –– –– –– –– –– –– –– a) 4 pages in AR
Software & Computer Services 408 99 WHITBREAD UK 5a b b –– • –– b
• –– –– 70= –– –– • –– a) Combination of environment reports, AR content
30 — SAP G a a –– –– –– –– –– • • • –– –– –– –– –– a) 2 pages in AR and web based information
b) Environment report only
211 — T-ONLINE G –– –– –– –– –– –– –– –– –– –– –– –– –– –– –– Merged with Deutsche Telekom in June ‘06
369 86 SAGE GROUP UK 1a a a –– • –– –– • –– –– a –– –– –– –– a) 2 pages in AR
b) Sage UK is a member

KEY Yes a See comments CR/CSR = Corporate Responsibility/Corporate Social Responsibility AR = Annual Report EHS = Environment, Health & Safety m = BITC member KEY Aus = Austria B = Belgium Cz = Czech Republic Den = Denmark Fin= Finland Fr = France G = Germany Gre = Greece Hun = Hungary It = Italy Ire = Ireland N = Netherlands Nor = Norway
Pol = Poland Por = Portugal Ru = Russia Sp = Spain Swe = Sweden Sw = Switzerland Tur = Turkey UK = United Kingdom

46 DIRECTIONS 06 DIRECTIONS 06 47
About us Salterbaxter is a corporate
communications and corporate
branding design consultancy.

A key area of our expertise is corporate

reporting and we advise leading UK and European
organisations on the development and design
of their financial and CR reporting programmes.

Our offer to clients is a balance of a We are a signatory to the United

genuine understanding of the corporate Nations Global Compact.
governance and reporting agenda
with a commitment to producing As part of the Directions series we
outstanding creative work. produce monthly articles on a broad
range of corporate communications
This has been recognised with our work issues. Please contact us if you would
receiving numerous awards including like to receive them or contribute
the ACCA award for innovation in to one.
sustainability reporting for our work
with O2, and the DBA/Management
Today Design Effectiveness Award for
our work with EMI.

Reporting/CR clients include:

BBC Land Securities
British Library Misys
BSkyB 02
Business in the Community Provident Financial
Daily Mail & General Trust Reuters
Ernst & Young Tetra Pak
To talk more about reporting
GlaxoSmithKline Unilever
and embedding CR:
Kelda Group Vodafone
Contact Nigel Salter or Lucie Harrild:
nsalter@salterbaxter.com
lharrild@salterbaxter.com
Tel: +44 (0)20 7229 5720

48 DIRECTIONS 06

202 Kensington Church Street
London W8 4DP
Tel +44 (0)20 7229 5720
Fax +44 (0)20 7229 5721
www.salterbaxter.com
DIRECTIONS
THE FULL
REPORT 2006
TRENDS IN CR REPORTING 2005–06
IS CORPORATE
We researched the use of sustainable plastics for the dust
RESPONSIBILITY
jacket of this report but did not find anything suitable. We
believe alternatives must be made available. So, using advice
IN YOUR COMPANY’S
from the British Plastics Federation, we are making a donation
to an organisation developing such materials in order to
BLOOD?
support their commercialisation in the future. We’d like to
hear about alternatives you might have come across, so
please get in touch with any recommendations.
This supplement is printed on Think4 Bright and is supplied
by Howard Smith. It is an FSC (Forest Stewardship Council)
certified material and is 100% recyclable.
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Printed by CTD, an ISO 14001 certified and FSC accredited
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Inside front cover image:
DR GOPAL MURTI/SCIENCE PHOTO LIBRARY