LSE sets up data repositorySeptember 2004
A central database of information on the social and environmental performance of companies is to be set up this month by the London Stock Exchange.
The service, known as the Corporate Responsibility Exchange, or CRE, is intended to reduce ‘questionnaire fatigue’ faced by listed companies, which will be able to report online in a way that fulfils the requirements of major rating systems.
Around 70 companies will trial the system, which has been developed in consultation with rating agencies and investors (EP6, issue 1, p1). The service will cost companies between £800 ($1460) and £3000 a year, while investors will pay up to £20,000 depending on how much information they access.
The LSE believes that at least half of the FTSE 350 will use the system initially.
Craig Mackenzie of Insight Investment Management, who was a member of the LSE working party that developed the system, said it should ‘considerably increase the quality of information flow from companies to shareholders on CSR, while reducing the costs at both ends’.
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