A study has revealed that only three per cent of the world’s largest listed companies* report on all basic sustainability metrics. In their third annual study, “Measuring Sustainability Disclosure: Ranking the World’s Stock Exchanges”, investment advisory and research firm Corporate Knights Capital, researched how well global stock exchanges encourage listed companies to disclose basic corporate responsibility data.

Corporate Knights Capital analysed the extent to which the world’s publicly traded companies are disclosing the seven basic ‘first-generation’ metrics; employee turnover, energy, greenhouse gas emissions, injury rate, payroll, water consumption and waste.

Just over a third of large listed companies (39%) report on the amount of greenhouse gases they are emitting, but only a quarter disclose their water consumption (25%) and just 12 per cent report on their rate of employee turnover.

The study also found that although the number of large companies disclosing basic sustainability indicators is increasing, but the rate of uptake is flatlining. For example, the percentage of large listed companies who disclosed their energy use increased by 88 per cent from 2008 to 2012 but only by five per cent from 2011 to 2012. There is a similar slowdown in reporting occurring on the other sustainability indicators.

The study ranks the world’s stock exchanges on sustainability reporting performance. It reveals that:

  • The Helsinki Stock Exchange was the top-ranked exchange, moving up from second position in last year’s assessment
  • The Euronext Amsterdam took second spot, followed by the Johannesburg Stock Exchange, the only stock exchange in the top ten based in an emerging market
  • This was followed by Euronext Paris and the Copenhagen Stock Exchange. The London Stock Exchange is ranked ninth the largest exchange inside the top ten, climbing from eleventh place over the past three years
  • North American exchanges are noticeably absent.

The study was prepared with the support of Aviva plc, Standard & Poor’s Ratings Services and the Association of Chartered Certified Accountants (ACCA).

Commenting on the study’s findings,Toby Heaps, Chief Executive at Corporate Knights Capital said: “We urge policy-makers to encourage or mandate listed companies to measure and disclose their performance. The lack of corporate reporting on first generation indices is in stark contrast to the increasing demand for them from investors, community groups and NGOs, as well as the broader trend toward increased corporate transparency and accountability.”

*World’s largest listed companies with a market capitalization of at least US$ 2 billion.

Rank – 2014 Rank -2013 Rank – 2012 Exchange Name Country Number of large companies Overall score
1 2 3 Helsinki Stock Exchange Finland 23 76
2 10 1 Euronext Amsterdam Netherlands 35 74
3 5 5 Johannesburg Stock Exchange South Africa 54 73
4 6 10 Euronext Paris France 122 73
5 7 2 Copenhagen Stock Exchange Denmark 22 72
6 14 16 Euronext Lisbon Portugal 11 72
7 4 7 Oslo Stock Exchange Norway 19 71
8 1 4 BME Spanish Exchanges Spain 47 68
9 11 12 London Stock Exchange United Kingdom 223 68
10 17 11 Australian Securities Exchange Australia 96 67
11 32 32 Borsa Istanbul Turkey 28 65
12 3 N/A Tokyo Stock Exchange Japan 404 65
13 31 N/A Bolsa Colombia Colombia 21 64
14 12 6 Stockholm Stock Exchange Sweden 57 64
15 8 15 SIX Swiss Exchange Switzerland 65 64
16 9 N/A Athens Stock Exchange Greece 11 63
17 23 18 Hong Kong Stock Exchange China 222 63
18 26 N/A Shanghai Stock Exchange China 171 63
19 13 8 Borsa Italiana Italy 55 63
20 15 13 Deutsche Börse Germany 98 62
21 25 N/A Taiwan Stock Exchange China 72 62
22 18 17 Singapore Exchange Singapore 53 62
23 24 23 Bursa Malaysia Malaysia 50 62
24 21 9 BM&FBOVESPA Brazil 86 62
25 28 25 Mexican Stock Exchange Mexico 46 60
26 38 N/A Shenzhen Stock Exchange China 144 60
27 40 31 Bangkok Stock Exchange Thailand 42 60
28 27 24 Wiener Börse Austria 16 58
29 22 19 Euronext Brussels Belgium 24 58
30 19 26 Moscow Exchange Russia 37 58
31 16 27 Korea Exchange South Korea 100 58
32 30 28 Toronto Stock Exchange Canada 162 58
33 39 20 Philippine Stock Exchange Philippines 35 56
34 33 N/A New York Stock Exchange United States 1060 56
35 34 30 National Stock Exchange India 129 55
36 20 21 Santiago Stock Exchange Chile 31 54
37 N/A N/A Irish Stock Exchange Ireland 12 53
38 37 N/A Indonesia Stock Exchange Indonesia 37 52
39 36 N/A Nasdaq United States 406 51
40 N/A N/A New Zealand Exchange New Zealand 13 47
41 45 33 Tel Aviv Stock Exchange Israel 23 44
42 42 N/A Saudi Arabia Stock Exchange Saudi Arabia 43 35
43 35 34 Warsaw Stock Exchange Poland 20 34
44 44 N/A Qatar Stock Exchange Qatar 21 20
45 41 N/A Kuwait Stock Exchange Kuwait 14 11
46 43 35 Lima Stock Exchange Peru 15 1