The Ethos Foundation is publishing its first study on the environmental and social reporting of large Swiss companies. As a long term institutional investor, Ethos believes that the companies in which it invests should closely consider their relationships with all their stakeholders and the strategic implications that my arise from them.
The study is divided into three chapters. The first chapter discusses corporate social responsibility (CSR) and environmental and social issues at stake, putting forward the importance of environmental and social information for investors. The second chapter is dedicated to the legal requirements of environmental and social reporting by which companies must abide, and the various voluntary standards that exist on this matter. Finally, the last chapter presents the current situation of the 52 largest companies quoted on the Swiss market (SMI and SMI-Mid).
The results are divided into three groups: companies that are "leaders" in terms of environmental and social reporting, those that are "making progress" and those that are still "beginners".
The study reveals that 35 companies (67%) publish environmental and social information more or less exhaustively. However, important gaps remain. Indeed, while information on the environment and employees is frequently addressed, that on business ethics and supplier relations is still rare. Furthermore, 21 companies (40%) do not publish any data on their environmental and social performance.
The largest quoted Swiss companies therefore still have an important potential for improvement in terms of extra-financial reporting. It is however encouraging to note a positive trend, as illustrated by the various companies that published their first CSR report in 2005, or that have improved the quality and completeness of the information they publish. Furthermore, we note the excellent quality of the CSR reporting published by the "leader" companies.
The Ethos study "Environmental and Social Reporting of Swiss Companies" is available in French and German.
