Top 20 Companies
NB: Please refer to Score Sheet for company rankings
Scottish and Southern Energy
SSE clearly takes sustainability to the core of its business. Its management has uncommon insight and enthusiasm for the commercial opportunities to be had in cleaner, diversified energy, and on other core issues such as domestic efficiency SSE is ahead of the curve relative to competitors and Government demands. Its willingness to be judged on its commitments is evidenced in its comprehensive, target-led reporting.
[back to top]Kingfisher
Kingfisher has an exemplary Corporate Social Responsibility (CSR) strategy and its strong performance is driven by globally applicable sustainability policies and by B&Q's trend-setting initiatives. Performance indicators confirm our opinion that the management is dynamic in dealing with the relevant Environmental, Social and Governance (ESG) issues for its activity. The company dedicates effort to ensuring high environmental and social standards when developing new products, and customers are also well treated as it places customer satisfaction at the forefront of its global strategy.
[back to top]BT
BT has embraced CSR as a means for differentiation and assumed a responsible role as a telecommunications provider looking beyond its immediate operations, coming up with various innovative ways of promoting environmental sustainability among its stakeholders, proactively developing products meeting the needs of disadvantaged groups, and addressing concerns over privacy and internet security.
[back to top]Mondi
Mondi's reporting is in-depth, relevant and transparent in reporting on its key performance indicators. Its wood sourcing policy is exemplary in terms of certification and supplier selection. Other achievements include stretching targets to reduce CO2 and other dangerous emissions associated with paper mills and pulp manufacture, and constructive relationships with NGOs on ensuring its forests use water sustainably in stressed regions. A major employer in South Africa, Mondi provides free Anti-Retroviral drugs to all employees and families affected by HIV/AIDS.
[back to top]Royal & Sun Alliance
Apart from its exemplary corporate governance practices, RSA has assumed a particularly active role in furthering environmentally responsible practices, invested in technology such as storm prediction and flood risk tools - regularly providing customers with advance warning of adverse weather - and also participates in a UK government initiative designed to improve access to financial services for those living on low incomes and deprived areas.
[back to top]Shaftesbury
Shaftesbury's approach to CSR is an elegant example of how to integrate philanthropic activities with the core business. It uses what it is good at to help community groups rather than just throwing money at them. The support is aimed at charities that will enhance the culture of the area, and the company also works with local authorities to address local issues such as improving street lighting. Community revitalisation in turn helps to raise the profile of the area which is good for business.
[back to top]Vodafone
An outstanding CSR reporter, Vodafone has firmly embedded social and environmental responsibility across its operations and organisational structure, and is a prime example of a business where CSR and commercial objectives are aligned, with particular attention in product development having been given to crossing the digital divide in the developing world as well as catering for groups struggling with increasingly complex technology.
[back to top]Mouchel
As well as developing solutions improving the sustainability of other companies and wider communities and working to extend sustainable practices to its stakeholders, Mouchel's own ESG credentials are equally admirable: its ambitious target-setting and human capital management are exemplary and it is also committed to enhancing the communities it works in through, for instance, providing employment locally and involving local people in projects affecting them.
[back to top]Aviva
Aviva has assumed a leadership role in researching and advocating for issues such as climate change, along with improving its own and its customers' preparedness to environmental hazards. In addition, initiatives such as 'Make Sense of It' and 'Six Steps' improve financial literacy and help customers make informed decisions on insurance-related matters, and Aviva also partners with microfinance institutions to help increase access to life products among the poor and in the rural communities.
[back to top]Johnson Matthey
Johnson Matthey has capitalised on the growing demand for environmentally sustainable products, hence helping reduce the impact of consumer and industrial behaviour. The company has also progressively improved its health and safety performance for five consecutive years; utilised its own technology to reduce emissions in its refining business; and devised best-in-sector training and development programmes as part of its human capital management.
[back to top]Rolls-Royce
Rolls-Royce is well positioned to tackle the negative environmental impacts of aviation and energy industry and in its R&D has been focusing on fuel efficiency, noise reductions, alternative fuels, renewable energy technologies and lighter engines, for example. The company is also among leaders in addressing the skills shortage, encouraging more women and people from minority backgrounds to pursue engineering careers and collaborating to promote science and technology in schools.
[back to top]Marks and Spencer
Marks and Spencer courted major controversy when its Chief Executive Stuart Rose ascended to the role of Executive Chairman, a practice regarded as poor corporate governance because the Chairman should always be independent, not an 'inside' man. Nevertheless it continues to score highly on environmental and social issues for which it has made a name for itself by going further, earlier than most of their competitors - and telling their customers about it. Its customer profile, it is argued, has a strong empathy for corporate responsibility.
Marks and Spencer has very strong policies policing its supply chain to uphold environmental and labour standards. Its 'Plan A' initiative is also working on reducing waste and packaging where feasible and it has made more progress than most in reducing salt and fat content in many of its meal lines. However, as Marks and Spencer cuts its advertising spend, it will have to internally justify the benefits of continuing with Plan A (which we hope it will).
[back to top]GKN
To illustrate GKN's positive overall approach to CSR, its reportable Health & Safety incident figures are dropping steadily over 3 years, its supply chain management represents best practice, the Board is closely involved in sustainability initiatives, and it is also active in engaging with communities. GKN is a founding member of the voluntary UK Emissions Trading Scheme and the company calculates that the use of its parts on vehicles saves 0.5m tonnes of CO2 annually.
[back to top]Smith & Nephew
Smith & Nephew Plc has risen from 33rd place to 16th following a formal and comprehensive review of its ESG impacts over the last year and the integration of these policies into its core business. Despite the inevitable cuts in healthcare expenditure which are routine in recession, Smith & Nephew will continue to benefit from one of the most imminent social challenges facing the world today - the aging of society. It offers products throughout the continuum of care for patients and these services are set to benefit the changing demographic.
[back to top]BG
BG's 'well-to-wheels' carbon footprint is at a significant advantage to companies dominated by oil because gas is less carbon intensive to extract and to burn. It is also less toxic in terms of spillages/fugitive emissions. However, BG is not involved in renewables, its per unit CO2 emissions are rising and its CO2 targets are not regarded challenging. It operates in 3 EIRIS 'Category A' countries and 2 'Category B' countries but is unique among very large oil and gas companies in having completely avoided controversy. Apart from concern over potentially excessive remuneration, there are no serious governance issues.
[back to top]Hammerson
Hammerson has made considerable progress over recent years in integrating sustainability into its core business processes. For example, the company now applies a lifecycle approach to all aspects of property design and management, aims to recycle 90% of its construction waste, has a target of a BREEAM Excellent rating on all new developments and also aims to exceed regulatory requirements for energy efficiency by 30%. 100% of the company's developments are on brownfield land. Hammerson also holds workshops to debate sustainability with key stakeholders and has policies to invest in communities by developing skills and providing jobs.
[back to top]Tui Travel
Tui Travel (formerly First Choice plc) has long been a leader because of its comprehensive and sector leading policies on the all the key Social, Environmental & Ethical issues we identified, including emissions and sustainable tourism at destinations (although it lacks an explicit human rights policy). First Choice merged with Tui Travel (part of the Tui Group AG, a German travel and shipping company) in 2007 and we have reasonable confidence that the sustainability agenda so advanced at First Choice will be able to absorb the less impressive mainstream holiday section brought over by Tui Group although the merger is unsurprisingly delaying meeting pre-merger targets.
[back to top]BHP Billiton
BHP Billiton is a behemoth of the megaminers and could soon be much bigger if it is successful in its takeover bid for Rio Tinto. Given the enormity of the company and the many often risky countries and environmentally sensitive operations it encompasses, it does a good job of maintaining its social licence to operate, through a very comprehensive risk management system and subscription to international standards around human rights, environmental management and bribery and corruption.
[back to top]Interserve
Interserve is a buildings and maintenance group which among other business services works to improve social housing facilities and helps its customers deliver their environmental objectives and designs environmentally innovative methods of working. Services provided to customers include integrated energy efficiency solutions, biomass boilers, water saving strategies, waste management and green transport plans, to name but a few. The company itself has exemplary environmental management systems integrated across operations. Interserve also provides training and improves health & safety awareness among its stakeholders, hence sharing the benefits of its award winning H&S management. Interserve has minor involvement in the construction and de-commissioning of nuclear plant.
[back to top]WS Atkins
One of the largest international environmental consultancies, WS Atkins works with clients on challenges brought on by climate change, urbanisation and environmental degradation, for instance. It aspires to be a world leader in the delivery of sustainable solutions and advises governments and businesses in both developed and developing countries on issues such as carbon reduction, water resources management, renewable energy and eco-efficiency. However, despite these locations including countries with oppressive regimes, Atkins does not have a robust strategy supporting its emerging market operations; this may expose it to a certain degree of direct and reputational risks. Atkins has significant presence in clean-up work at many of the UK's nuclear sites and it engaged in planning and enabling the next generation of nuclear power stations.
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