Actual environmental performance is what many socially responsible investors are concerned with. Although having good environmental management system is linked to this and is often a pre-requisite for it, better quality reporting on both EMS and performance is essential for investors to be able to distinguish between companies why would chose to invest in or otherwise.
“An adequate environmental management system is a necessary step companies must take in improving their environmental impact,” said report author and EIRIS analyst Stephanie Maier, “however as a system it does not guarantee significant environmental improvement. For that investors and regulators need to look beyond words and policies to a company’s actions.”
Key findings of the report include the following:
* The majority (72.6%) of over 800 high impact companies analysed in over 20 countries have implemented an environmental management system of at least “moderate” standard.
* Almost half (48%) of high impact companies demonstrated some improvement in performance over the previous three years, however wide geographical differences remain. In Switzerland, Italy and Portugal over 75% of companies have demonstrated some environmental improvement over the past three years, while this is true of fewer than 25% of companies in Hong Kong, Singapore and Ireland.
* Over 75% of German companies produce environmental reports judged by EIRIS to be of a high standard, however this figure drops to below 25% for companies in the USA, Ireland, Hong Kong and Greece.