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The Growing Trend of Sustainability Reporting in the U.S. – and a Nudge Toward Integrated Reporting

499 companies of the S&P 500 now make at least one public sustainability disclosure, according to a new report from the Investor Responsibility Research Center Institute  (IIRCI) and the Sustainable Investment Institute (SI2). Seven of those companies – 1.4% of the S&P 500 – go a step further by fully integrating their sustainability disclosures into their traditional financial reporting and connecting sustainability impacts to financial and governance components. The companies that currently use this integrated report format include American Electric Power, Clorox, Dow Chemical, Eaton, Ingersoll Rand, Pfizer, and Southwest Airlines.

The 285-page report also highlighted sustainability areas that were reported on by S&P 500 companies.  Some of those highlights are:

  • 68% reported on environmental management and efforts to reduce operational risks ranging from employee health to possible litigation.
  • 67% identified efforts related to employment including employee retention, health plans, continued education, and diversity.
  • 66% highlighted the growing concern of climate change among key stakeholders and the competitive returns from energy-efficient investments and other sustainable capital investments.
  • 63% reported possible risks of litigation concerning environmental damage from hazardous waste and their efforts to mitigate these risks. Companies were most likely to put a dollar amount on their methods of dealing with hazardous waste.
  • 43.4 % linked executive compensation to some type of sustainability criteria.

For a full copy of the report, and to see the other areas of sustainability on which these companies are reporting, click on the following link:


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