me think :): Oct 28, 2010

Thursday, October 28, 2010

More firms starting to issue sustainability reports

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Singapore skyline

SINGAPORE : With increasing global attention being paid to issues of environmental protection and social responsibility, companies are beginning to issue sustainability reports.

According to estimates, the number is picking up and will involve some 3,000 companies worldwide this year.

Such reports allow investors to look beyond a company's standard financial reporting to their management of environmental and social matters.

In Europe, some analysts estimate that 17 per cent of investments are in sustainable-related funds, and in the US, they make up around 11 per cent.

Comparatively, the numbers in Asia are small. But experts say there are signs of growing investor interest in such funds.

Sharad Somani, executive director, Global Infrastructure & Projects, KPMG, said: "There are a lot of funds now which are socially responsible investors ...

"So for companies that want to tap into these kind of funds, and which will grow in volume going forward and which will be more important in Asia, we believe that if you are to tap these funds, you will have to be seen to be doing concrete actions to be sustainable.

"The second big thing we are seeing is that most of the Asian companies are exporting to a lot of European and American companies.

"And a whole lot of American and European companies are looking at their entire value chain - which essentially means - where they source the products from, are they following the best practices, or are they sustainable.

If the companies do not start changing the way they function in order to be more sustainable, it may directly impact their ability to do business with these companies, and also being competitive."

Stock exchanges in the region have been making efforts to encourage their listed companies to boost transparency through sustainability reporting.

The Singapore Exchange recently issued a "Policy Statement on Sustainability Reporting", while Bursa Malaysia mandated sustainability reporting in 2006.

Devanesan Evanson, chief market operations officer, Bursa Malaysia, said: "One of the challenges faced by public-listed companies is guidance. The listed companies wanted guidance about the process of disclosure.

"And to that extent as an exchange, what we have done is publish a framework, a framework to guide listed companies in making the CSR statement.

"Basically, this framework looks at four areas. First and foremost, it looks at the community - how they can have CSR activities in relation to the community, and the market place, and your workplace among your employees."

Others added that sustainability is not only becoming a regulatory requirement but also a business imperative.

Graham Owens, director, PAIA, said: "When you are supplying to companies, they have got their own set of sustainability criteria that they have to meet themselves.

"So if you help them with that, then you could become a preferred supplier in that sense. So by producing a report and allowing people to access what you are doing along your supply chain, then you are making it easy for them.

"You are also making it easy for investors to make an informed decision as to whether they should look at your company as good future potential in terms of development."

Currently within Singapore, the Philippines, Thailand, Indonesia and Malaysia, only about 130 companies produce sustainability reports.

- CNA/al

- wong chee tat :)

Death toll climbs to 32 in Indonesia volcano eruption

By the CNN Wire Staff

October 28, 2010 -- Updated 1214 GMT (2014 HKT)

Deadly eruptions in Indonesia

STORY HIGHLIGHTS

Rescue and recovery efforts continue to unfold
The volcano erupted at least three times Tuesday
The traditional gatekeeper of Mount Merapi fell victim as well
The gatekeeper, who was in his 80s, will be buried Thursday

(CNN) -- The death toll from an Indonesian volcano that exploded this week has climbed to 32, medical officials said Thursday.
Rescue and recovery efforts continue to unfold, with the Indonesian government scrambling to help tens of thousands of residents displaced by the eruption.
The volcano erupted at least three times Tuesday, forcing residents to flee.
Mount Merapi, which looms on the horizon north of the major city of Yogyakarta, is one of Indonesia's most active volcanoes and lies in one of the world's most densely populated areas. The volcano has a summit elevation of nearly 10,000 feet (3,000 meters).

Video: Volcano evacuees on edge

RELATED TOPICS

Hundreds of displaced residents have crammed a small government building in Yogyakarta. Many had fled with only the clothes on their backs.

Some residents refused to flee, holding out to watch over their crops and livestock. Some residents awaited word from the traditional gatekeeper of Mount Merapi. But Maradjin, the gatekeeper, fell victim to the volcano as well.

He is to be buried Thursday. He died in his 80s, after being appointed about two decades ago by the last Sultan of Java. Maradjin's father was gatekeeper before him.

"Merapi is a house of spirits, which also means a living mountain," Maradjin told CNN in a 2006 interview. "When Merapi emits smoke, we have to be respectful."

CNN's Kathy Quiano and Stan Grant contributed to this report.

- wong chee tat :)