Insights

Jeff Gardner and Fred Cohen examine what leading companies are doing to stay on top of the environmental challenges, safeguard their reputations, and create value for the business.

While the current turmoil in global capital markets is driven by financial and economic factors, the transparency of companies' reporting in such volatile times has never been as important. Without it, they cannot build public trust in their performance or the sustainability of their business. It is now more important than ever for policy makers to drive a collaborative approach to corporate reporting, argues PwC partner David Phillips.

With widespread corporate agreement on the scale of the carbon challenge we are facing, the Carbon Disclosure Project's annual reports (global, US and UK) provide strong signals that the shift to a low-carbon economy in some countries is now under way.

Find out more about the Carbon Disclosure Project.

The globalisation of the capital markets and the impact on corporate governance was the focus of the International Corporate Governance Network conference. Global trends were also explored, particularly in relation to the convergence of reporting standards, regulatory harmonisation and the growing influence of proxy advisers. ICGN members were able to contribute to the group's ongoing work programme, focusing on: accounting and auditing, non-financial business reporting, anti-corruption, shareholder rights and responsibilities and company shareholder dialogue.

FTSE 250 commit to environmental issues

According to a recent survey by BSI British Standards, FTSE 250 companies see the environmental agenda as key to their business objectives and are continuing to work towards reducing emissions despite the current economic situation.

Leading organisations call for better corporate reporting on human rights

Three leading organisations are launching an initiative to foster greater integration of human rights principles in corporate sustainability reporting. Human Rights: A Call to Action calls for companies to make a commitment to measuring and publicly reporting on human rights as a business issue.

Investors urge business to improve cash reporting

Companies must step up reporting of their cash positions or risk losing investor confidence according to the Corporate Reporting Users’ Forum (CRUF). The CRUF is a discussion form whose participants include individuals from both buy and sell-side institutions, and from both equity and fixed income markets with global or regional responsibilities and from around the world and warn that disclosures are crucial as solvency issues come to the fore during the financial crisis.

New research shows reports are weak on disclosure and market context

According to a new study of buy-side investors and sell-side analysts by Thomson Reuters and communications agency SAS, investors see little difference in annual reports despite legislative changes in the UK aimed at improving their quality.

Getting to grips with non-GAAP measures (PDF - 298kb)

Embrace non-GAAP measures in your corporate reporting, David Phillips advises, but it is increasingly important to follow certain ground rules so that the information sheds light and not 'noise'. This is an article originally featured in World Watch Issue 2 2008, PricewaterhouseCoopers Governance and Corporate Reporting magazine.

Take sustainability to heart (PDF - 67kb)

While corporate responsibility has been overwhelmingly driven by external pressures and expectations, sustainability goes right to the heart of the business model - raising significant questions and challenges for the corporate reporting model says Erica Hauver. This is an article originally featured in World Watch Issue 2 2008, PricewaterhouseCoopers Governance and Corporate Reporting magazine.

Emissions reporting examined in new report

'Corporate Reporting Greenhouse Gas Emissions Reporting 2008', a new report shows staggering inconsistencies in how FT 500 companies calculate and verify their greenhouse gas emissions. The report by The Ethical Corporate Institute reveals that companies responding to the fifth annual Carbon Disclosure Project questionnaire are using a total of 34 different public protocols or guidelines to report on their emissions.

Improvement to the Financial Reporting Supply Chain and Areas for Future Action examined in new report

"Financial Reporting Supply Chain: Current Perspectives and Directions", a new report highlights improvements in corporate governance, the process of preparing financial reports and the audit of financial reports following significant efforts to strengthen financial reporting in recent years. Yet despite these improvements to the financial reporting process, the report; commissioned by the International Federation of Accountants (IFAC); points out that the understandability of financial reports has not improved.

Sustainability reports should be independent

"Closing the gap", a new report by communications agency Black Sun, has found that most companies do not provide a consistent and integrated approach to sustainability reporting.

Annual reports featured on YouTube

YouTube has shown that it has a serious side, with US companies posting video annual reports on YouTube. The latest company to do so is NYSE-listed Pike Electric who joins other public companies California Pizza Kitchen (CPK) and Ruth's Chris Steak House. The videos, which are under five minutes, are also available on the firms' IR websites.