The resources sector analysis of the KPMG International Survey of Corporate Sustainability Reporting 2002 reviewed the reporting practices of the resources companies amongst the Top 100 companies in 19 countries, including Australia.
According to Helen Cook, National General Manager KPMG Energy and Natural Resources Group, Australia, the survey highlights the importance placed on social responsibility by resources companies in Australia and globally.
"The resources sector more than any other has had to address issues of social responsibility in relation to the environmental and social impacts of their operations. This is clearly shown in these results but is often overlooked by the broader community.
Appropriate and timely stakeholder dialogue is becoming a key business risk management issue for companies in the sector and reporting is one part of understanding and managing community and environmental expectations", Ms Cook said.
Key findings of the resources analysis include:
* 42 per cent of an expanded group of resources companies surveyed* produced environmental, health and safety, social and community and sustainability reports;
* The resources companies surveyed within the Top 100s* showed that 33 per cent of resources companies produce sustainability reports, still significantly higher than the average 23 per cent across all Top 100 companies in all sectors;
* Corporate reporting by sector for the top 100 companies in 19 countries including Australia showed that the oil and gas sector had a higher % of sustainability reporting with 38% compared to the mining sector at 33%. The utilities sector ranked highest amongst all industries for top 100 companies in 19 countries with 50% of companies doing some form of corporate report;
* In comparing the Fortune 250 companies globally the oil and gas sector showed 58% had provided corporate reports in 2002 . This was slightly lower than in 1999 (58%) and compared unfavourably against the mining sector, the forestry sector, chemical and synthetics and transport sectors where 100% of companies had issued a report;
* The resources sector leads the sectors with respect to report verification with 50 per cent of the resources companies within the Top 100s* employ reporting assurance processes; and
* Other Energy and Natural Resources sectors reporting amongst the Top 100s included: Utilities 50 per cent; Forestry 42 per cent; and Oil and Gas 38 per cent.
Overall, the KPMG International Survey of Corporate Sustainability Reporting 2002, found the reporting rate for the Top 100 listed Australian companies decreased from 15 per cent to 14 per cent in 2002.
According to Sophie Punte from KPMG Australia who conducted the Australian research and co-wrote the survey report, this is more a function of the changing corporate landscape in Australia than a decrease in acceptance of sustainability reporting.
"We have seen a large number of companies, particularly in the resources sector where environmental and social reporting has long been in the mainstream, subjected to mergers, takeovers and liquidations. These companies have been replaced with non-reporting companies from other sectors," she said.
"Although top Australian companies lag in publishing separate reports, already 76 per cent of surveyed Australian companies include environmental or social information in their annual reports, compared with 49 per cent internationally. This suggests that we can expect an increase in public reporting in Australia in the next three years."
Attracta Lagan, who heads KPMG Australia's Sustainability Practice, said growth in sustainability reporting is being driven by more than just growing mandatory requirements to disclose social or environmental information in annual or other public reports.
"Companies are under increasing pressure to report on their social and environmental performance, as investors realise this is linked to their financial performance," Ms Lagan said.
"Companies are also recognising that their stakeholders are not limited to shareholders and investors alone and this is reflected in the increase in social and community topics included in reports."
"Changing societal values are demanding greater transparency and accountability from corporations from their social and environmental impacts. The average person on the street wants to be reassured that business will seek to manage all its impacts on society."
