Around two-thirds of FTSE 100 companies are making "adequate or full disclosure" of their Socially R...
Around two-thirds of FTSE 100 companies are making "adequate or full disclosure" of their Socially Responsible Investment status, says the ABI who introduced the voluntary guidelines a year ago.
Guidelines set by the ABI call on companies to disclose in their annual report whether the board has "business and reputational risks" which could come from their management of social, ethical and environmental issues.
Figures quoted by the ABI say 30% of all companies have made full to adequate disclosure while another 6.5% of companies have made a commitment to disclose whether they have looked at the impact of tobacco, chemicals, water and electric utilities on the global environment.
Such work is being conducted ahead of the government's push to require an Operating and Financial Review (OFR) by all companies, which includes references to social and environmental risks of the work they do, says Mary Francis, director general of the ABI.
"We are pleased with this response. It shows that companies do recognise the business risks associated with environmental, ethical and social issues. Proper management of these risks will not only make businesses more secure for their employees as well as for shareholders; it will also avoid the need for prescriptive legislation," says Francis.
"In the second year of the guidelines, we will focus on refining our disclosure expectations and on engaging with companies where we believe the business risks are still not sufficiently acknowledged. This includes particularly the retail sector where supply chain management can have a large impact on a company's reputation," she adds.
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