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Investor coalition demands answers from Global Compact 'laggards'

2010

Investors signed up to the UN Principles for Responsible Investment (PRI) are targeting 86 large companies that failed to submit an update last year on their implementation of the Global Compact’s principles.

Signatories to the PRI are writing to the companies to demand an explanation for their failure to produce the mandatory annual ‘Communication on Progress’ (COP) on their adherence to the ten corporate principles outlined by the Compact.

The investor coalition, which manages over $2.1trillion (£1.3tn, €1.5tn) of assets, points out the importance of CSR issues for ‘mainstream investors’ and the importance of them to corporate reporting generally.  

James Gifford, executive director of the PRI, said: ‘Companies that want to attract capital now recognise that reporting of issues such as carbon emissions and corporate governance is becoming as important as the reporting of traditional financial issues. In the wake of the financial crisis, many investors believe that analysis of ESG issues is part of a more holistic approach to assessing a company and managing risk.’

Companies are ejected from the Global Compact if they fail to submit a COP for two years running. The year’s cull saw 859 signatories removed. The 86 ‘laggards’ have not yet been named, but last year Gap, Severn Trent and LVMH were among the 105 companies singled out.



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