An Exploration of Integrated Reporting
A Journey 2010 to Discover Values
A Study of Sustainability Reporting in China
SynTao – Sustainability Solution
An Exploration of Integrated Reporting
A Journey To Discover Values
2010
A Study of Sustainability Reporting in China
Chief author An Jiali Authors Guo Peiyuan, Zhang Hongfu, Chen Ying, Li Wenbo, Anna-Sterre Nette, Zhang Jieya, Gong Jian Translation Gao Xiuping, Wang Qiang, Aurélia Britsch
Researched by SynTao Sponsored by Oxfam HK
Supported by Center for Environmental Education and Communication, Ministry of Environmental Protection of People’s Republic of China
China Credit Information Service (PRC), Ltd.
Please note that the statements in this report do not represent the position of Oxfam HK or the other supporting organizations. A Journey to Discover Values 2010
Research Institute
SynTao is a management consultancy that focuses on promoting corporate social responsibility (CSR) and socially responsible investment (SRI) in China. We have offices in Beijing and Washington DC. On the basis of our global perspective, local expert team, and extensive partnership network, we provide CSR and SRI related consulting, training and research services to assist our clients to enhance their competitiveness and strategy. SynTao is operating four CSR related websites:
SynTao: http://www.syntao.com Caseplace: http://www.caseplace.cn China CSR Map: http://www.chinacsrmap.org China Sustainability Reporting Resource Center: http://www.sustainabilityreport.cn
Sponsor
Oxfam Hong Kong is an independent international development and humanitarian organisation working against poverty and related injustice. Oxfam works with people facing poverty and with partner organisations on development, humanitarian, policy advocacy and public education programmes.
Supporters
Center for Environmental Education and Communication,
Ministry of Environmental Protection of People’s Republic of China
China Credit Information Service (PRC), Ltd.
5 Abstract
The year 2010 witnessed the fast transformation of China’s macro economy, industrial restructuring and transition of development mode, all of which posed greater requirements on the sustainability capacity of companies. With the development of society and advent of new media, the implementation of corporate social responsibility has received wider attention and more profound interest. As an important communication tool, sustainability reports1 received greater attention of companies. Relevant parties, in their endeavors to promote the development of reporting, have a growing demand regarding information quality. In 2010, the number of sustainability reports continued to grow and reached 703, a steady but not abrupt growth as compared with the previous years. Both average length and quality of the reports have been improved.
In terms of companies’ ownership, the state-owned enterprises (SOEs), which first took the initiative of CSR reporting, are still in the lead, representing 78% of the total reporting companies. The number of listed companies has grown and accounts for 73% of the total number of sampled reports, a slightly lower proportion than in 2009. As regards industry distribution, the manufacturing industry, financial industry, metallurgy industry and power industry published more reports. The area in which reporting companies are found continued to expand, basically covering all provincial administrative areas across China, among which Beijing, Shanghai and coastal areas have more releases than the rest.
This study evaluates 71 sampled reports according to the “SynTao Assessment for Sustainability Reporting”, focusing on two dimensions, i.e. information completeness and information quality. The assessment results suggest a higher overall score. Most reports display a complete structure and disclose management and performance information in economic, environmental and social aspects. The information quality, however, still has room for improvement. The main problems regarding information quality include a lack of quantitative information disclosure and an imbalance of disclosed information.
Specifically, employee management information and product/service information have been well disclosed. As regards environment disclosure, management information outweighs performance information and the most adequately disclosed topics are energy conservation and emission reduction information as well as “green office”
1. The study focuses on the Chinese companies’ sustainability reports and the sustainability reports targeting Chinese audience by the foreign enterprises in China. Cor- porate sustainability reports (“reports”, “corporate reports” for short) include all non-financial reports dealing with corporate social responsibility information, such as corporate social responsibility (CSR) reports, corporate citizenship reports, corporate health, safety and environment (HSE) reports, corporate environment reports and Global Compact communication of progress (COP) reports. I information. About 90% of the sampled reports disclosed their charity activities. What is noteworthy is that about 60% of the sampled reports disclosed social responsibility strategy information and that many reports were able to analyze and disclose the risks and opportunities for the sustainable development of the companies.
This study sets out in-depth analysis of the food and beverage industry and financial industry. The results suggest that the overall reporting quality of the food and beverage industry needs improvement and that their disclosure on food safety is inadequate. The financial industry has a good overall disclosure quality, especially in the aspects of corporate governance and management information. Concerning the environment aspect, 90% of the sampled reports in the financial industry disclosed green loans. The reports in this industry touch upon a variety of social issues that are typical of this industry. This study also analyses the “carbon information” disclosure in the reports.
The present study also introduces “Integrated Reporting”, the latest development in international reporting practices. The study analyzes the philosophy of integrated reporting and its application in China and abroad, in order to encourage the Chinese professional agencies and companies to comprehend the theoretical system and application, participate in international dialogues and win China a say in the new round of rule-making game.
Based on the overall analysis of the sampled reports, some predictions can be put forward: the number of sustain- ability reports will continue to grow in the next two to three years, but on a slower basis; China’s 12th Five-Year Plan will have some directive effects on Chinese companies’ (especially on the state-owned enterprises) implementation of social responsibility, which will be reflected in the sustainability reports in the years to come. Besides, with the accumulation of experience and improvement of management, the quality of reports will progress, although some companies will encounter a bottleneck in compiling reports. Lastly, external stakeholders may make more use of sustainability reports in the future, and more sustainability reports may be released electronically and come in various forms.
II A study of sustainability reporting in China
Contents
1. Sustainability Reporting Developments 2 1.1 Sustainability reporting in China 2 1.2 Trends in Sustainability Reporting 5 1.3 The Composition of Reporting Companies 7
2. Assessment of Reporting in China 11 2.1 Assessment Method 11 2.2 Sampling 12 2.3 Assessment Results 13
3. Assessment of Key Industries and Issues 22 3.1 Food & beverages 22 3.2 Banking 27 3.3 Carbon Disclosure 32
4. Integrated Reporting 37 4.1 What is “Integrated Reporting”? 37 4.2 Roles of Integrated Reports 37 4.3 Development History 40 4.4 Integrated Reporting Practices 41
5. Sustainability Reporting Trends 45
Appendix 1: The Chronicle of Sustainability Reporting Events in China 48
Appendix 2: Reporting Companies 2010 in China 50
Interviewees List and Acknowledgements 53
1 A Journey to Discover Values 2010
1. Sustainability Reporting Developments
1.1 Sustainability reporting in increasing. Through social media channels such as China Sina Weibo and microblogs, people could more easily show their concern about company ethics, fueling discussions about sensitive issues such as food safety Sustainability reports released in 2010 in China show and occupational health and safety. significant progress in level of disclosure: reports have moved beyond sole presentation of qualitative • Increasing number of sustainability information and narrative text, and include more often policies adopted by governments qualitative data sets. In 2010, China launched its 12th Five-Year Plan In that same year, the global financial crisis faded and for national development, not only setting higher China rebounded with impressive economic growth, standards for companies’ commitment to their social China’s GDP (gross domestic product) grew by 10.3%, responsibilities but also creating more opportunities enabling the country to surpass Japan as the world’s to develop ethical conduct. The Plan was followed by second largest economy. accelerated efforts of China to pursue the changes in its economic development mode. The central government The fast economic development allowed China has been proactively promoting comprehensive, to accelerate economic restructuring and bring coordinated and sustainable development featuring sustainable growth to the core of its economic “people first”, as the strategic focus and objective of policies, resulting in specific requirements for Chinese economic growth. Corporate social responsibility companies. objectives fit perfectly this model, since the concept unites economic restructuring with energy-saving and Pressure increased for corporate entities when in late environment- friendly goals. 2010 a series of macro-control polices were introduced, such as a rate hike cycle, a resource tax reform, and an In 2010, both central and local Chinese governments energy conservation and emission reduction. continued to play an important role in promoting corporate sustainability reporting. Several documents Moreover, general expectations about the quality and guidelines have been formulated and released of corporate sustainability reporting were also ever
2 A study of sustainability reporting in China concerning the quality of corporate information China Securities Regulatory Commission (CSRC) disclosure. imposed harsher punishment on illegal disclosures. In December 2010, CSRC issued the “Rules on In 2010, both central and local Chinese governments Determining Administrative Liabilities in Illegal continued to play an important role in promoting Information Disclosures (Draft)” to solicit public corporate sustainability reporting. Several documents opinions. This document required that “listed and guidelines have been formulated and released companies should disclose information in an authentic, concerning the quality of corporate information accurate, complete, timely and fair manner” and that disclosure. “material omissions should be judged in accordance with laws, administrative regulations, CSRC rules as In its 2009 Annual Review released in August 2010, the well as the provisions of stock exchanges (Article 9).” State-owned Assets Supervision and Administration The requirements have been conducive to improving Commission (SASAC) discussed the corporate social the quality of information disclosure. responsibility (CSR) performance of central-govern- ment enterprises (CGEs) and urged enterprises to put In January 2011, China Banking Regulatory disclosure high on their agenda. The review stipulated Commission (CBRC) modified the “Rules for the that “all central-government enterprises should release Disclosure of Trust Companies”, which demand that a CSR report or sustainability report within three years trust companies disclose authentic, complete and so as to enhance communication with all stakeholders, accountable information and reiterate the requirement listen to them, respond to their concerns and make for transparency so that the public can have access to improvements accordingly.”In September 2010, the this data. Ministry of Environment Protection formulated the “Guide for Environmental Information Disclosure of • NGOs play a bigger role in supervising Listed Companies” and solicited the opinions of the Companies’ reporting practices public. In 2010, research institutes and trade associations Local governments also made great efforts to made great efforts to update sustainability reporting promote sustainability reporting, enhance companies’ standards and guidelines, to improve the disclosure disclosure capacity and improve the quality of disclosed capacity of companies and to standardize sustain- information. For example, Shaanxi Province issued the ability reporting. In April 2011, the CSR Research CSR Guidebook for Shaanxi Industries to facilitate the Center (Economics Division, Chinese Academy sustainability reporting of local companies. Jiangxi of Social Sciences) published its “Corporate Social Province encouraged local companies to jointly Responsibility Report Preparation Guide 2.0” issue CSR reports so as to help the less-experienced (CASSCSR2.0). The 2.0 version highlights the companies. “balanced” principle of CSR reports, i.e. companies should disclose both positive and negative information • Higher standards set by regulatory in an objective way. In April 2010, Sun Xiaohua, vice authorities chairman of All-China Federation of Industry and Commerce (ACFIC), announced in a speech given at In 2010, regulatory authorities set increasingly high the ceremony of commending the “Brothers of Credit” standards for the transparency of the information that ACFIC and Peking University will jointly develop disclosed by companies. a CSR guide system for China’s private companies. The
3 A Journey to Discover Values 2010
system will serve as the standard for private companies and is encouraging them to disclose detailed data and to produce sustainability reports. information concerning energy consumption.
NGOs are playing an increasingly significant role in Also frequent water pollution accidents and acute the supervision of the transparency of companies’ water shortages make water a prominent and pressing information disclosure. In April 2010, the Beijing based issue. In the No. 1 Document of 2011,2 which is entitled environmental protection NGO, the Institute of Public the “Decision of CCCPC and the State Council on and Environmental Affairs (IPE) submitted a report Accelerating the Water Conservancy Reform”, the to Hong Kong Stock Exchange, revealing that 175 central government emphasizes the importance of companies listed in Hong Kong SE failed to disclose water matters: “Water is essential for life, production the penalties they were subjected to for environment and ecology.” Water utilization and management pollution and demanding that Hong Kong SE improve has a profound influence on company performance, its disclosure rules for listed companies. In July 2010, which in turn plays a key role in addressing the water after the copper acid water leakage in Zijinshan crisis. Around the world, a variety of organizations Copper Mine of Zijin Mining Company, 11 domestic have attempted to promote water resource utilization NGOs jointly sent a public letter to Shanghai Stock disclosure. In 2010, Dow Jones Sustainability Indexes Exchange and Hong Kong Stock Exchange, accusing (DJSI) took a step forward in this direction, requiring Zijin Mining Company of deliberately delaying the 2500 largest companies listed on the Dow Jones disclosure of the leakage and pollution accident. The around the world to disclose information about water letter also required the two stock exchanges to improve resource utilization. their disclosure requirements for listed companies and to impose punishments on Zijin Mining for omittance • Advances are made in reporting guidelines of disclosure. and standards
• Hot issues carbon and water In March 2011, the Global Reporting Initiative (GRI) released the 3.1 version of the Sustainability Reporting Climate change is receiving more and more attention, Guidelines. Compared to the 3.0 version, among other as the issue is leading to increasingly serious social and things, the new version provides increased guidance environmental problems. In the 12th Five-Year Plan, on three topics: human rights, gender equality and the central government incorporated carbon dioxide community impact. The new topics take into account reduction as an obligatory target. As more policies some issues that had been previously neglected. In the are expected to be adopted in future promoting case of community impact, the new guidelines require a low-carbon economy, companies will be facing more concrete disclosure from companies that have inevitably more sustainability risks and opportunities. significant influence on community development, Therefore, investors and other stakeholders expect besides the usual indicators, such as the impacts of increasingly more corporate disclosure concerning operation on a community, policies to relieve the greenhouse gas emission, energy conservation and impacts, and cooperation with local communities. emission reduction. Since 2002, Carbon Disclosure GRI also published a new Technical Protocol to help Project (CDP), on behalf of investors, has been companies measure and identify information for inviting multinationals to participate in CDP surveys disclosure.
2.The No.1 Document of a year refers to the document issued by the Central Committee of the Communist Party of China (CPC) and the State Council of China in the beginning of the year, specifying the key note and main tasks of the year. The document serves as a guideline for the overall work of the government.
4 A study of sustainability reporting in China
In November 2010, the International Standardization 1.2 Trends in Sustainability Organization held a ceremony themed “undertake Reporting responsibility and achieve sustainability” to launch ISO26000, Guidance on Social Responsibility. • The number of reports is steadily ISO26000 comprises seven clauses, namely scope, terms increasing and definitions, understanding social responsibility, principles of social responsibility, two fundamental From January to December 2010, a total of 703 sus- practices of social responsibility, social responsibility tainability reports were released by 702 companies in core subjects, and integrating social responsibility China,3 marking a 30% increase compared to 2009 throughout an organization. The core of ISO26000 (533). However, this increase was less notable than the covers nine aspects of social responsibility, i.e. organiza- four-time rise seen between 2008 and 2009. Also most tion and management, human rights, labour practices, reports released by companies in 2010, regarded the environment, fair operating practices, consumer issues, second publication on sustainability, many of which community involvement, social development, and had released their first report in 2009. A fewer number stakeholder identification and engagement. Although of companies released in 2010 their third or fourth ISO26000 does not intend to be a reporting guideline, it consecutive sustainability report. has been referred to by some Chinese companies as an outline for sustainability reporting.
Figure 1: Number of Sustainability Reports Released by Companies in China (1999-2010)
800 703 700
600 533
500
400
300
200 121 77 100 1 1 2 2 3 4 9 23 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
No. of Reports
Notes: 1. The statistics are based on publicly available data. The reports cited here can be found in China Sustainability Reporting Center (http://www.sustainabilityreport.cn). 2. Reports released by parent enterprises and their subsidiaries are counted separately. 3. For the reports released by foreign companies or joint ventures, only the country reports about China are counted. 4. Reports without a clear release date are not included in this report. Therefore, the actual number of the reports released in China for 2010 might be higher than the 703 reports selected based on our research criteria.
Data source: If not otherwise specified, all information presented in this report was collected by SynTao.
3. China National Petroleum Corporation (CNPC) released two reports, “Social Responsibility 2009” and “CNPC in the Sudan”.
5 A Journey to Discover Values 2010
• More reports include “social Report”, a significant drop from 2009. responsibility” in title. Similar to last year, only a few of the reports (2%) are For 2010, three quarters of the reports collected for titled “Sustainable Development Report”; one or two this research are titled “Social Responsibility Report”, reports are defined by other titles, such as “Corporate marking a 21% increase from 2009. Only 15% of the Citizenship Report”, “Sustainable Operation Report” reports are titled “Corporate Social Responsibility and “Environmental and Social Report”.
Figure 2: Sustainability Report Titles as Released by Companies in China (2010)
1% 2%
15% 7%
Sustainable Development Report
Social Responsibility Report
Corporate Social Responsibility Report 75% Corporate Citizenship Report
Others
• Over 50% of the reports count no from the 56% in 2009. Further, 15% of the reports more than 10 pages, despite increase in are longer than 50 pages, a small increase from the average length. 48% over 2009. The longest report is the 224 pages bilingual “Sustainable Development Report 2009” The average length of sustainability reports released in Chinese and English released by China Ocean in 2010 is 22 pages, a small increase from the 20 pages Shipping (Group) Company, closely followed by seen over 2009. However, still 51% of the reports reports from China Minmetals and SINOMACH.4 are no longer than 10 pages, a slight improvement
Figure 3: Length of Sustainability Reports Released by Companies in China (2010)
>100 14 91－100 3 81－900 7 71－80 20 61－70 19 51－60 42 41－50 23 31－40 37 21－30 52 11－20 115 6－10 219 Pages of Reports <5 128
05 0 100 150 200 250
No. of Reports
4. Trade reports are not counted.
6 A study of sustainability reporting in China
• Only a minority of reports are third-party organization. Another 4% (27 reports) independently audited by a third party cited the comments of a third party. These two groups of reports together account for approximately 9% of Among the total number of reports released during the total number of reports, which is similar to the 2010, only 5% were independently audited by a percentage in 2009.5
Figure 4: Audited Sustainability Reports Released by Companies in China (2010)
4% 5%
91% Not Audited
Commented by a Third Party
Independently Audited by a Third Party
• Only a small proportion of reports refer Listed in Shenzhen Stock Exchange”. to a reporting standard A number of central-government enterprises refer Among the reports released in 2010, only 10% to the “Guiding Opinions for Central-government refer to a domestic or international reporting Enterprises Implementing Social Responsibility” standard.6 Overall, 57 reports refer to the issued by the State-owned Assets Supervision and “Sustainability Reporting Guidelines” by the Global Administration Commission (SASAC). As for trade Reporting Initiative (GRI), 18 reports to the COP guidelines, the most frequently cited document is (Communication on Progress) reporting framework “China Sustainability Reporting: Guidelines for of the Global Compact, and 4 reports to the AA1000 Apparel and Textile Enterprises” (CSR-GATEs). Standard.7
Some companies turned to a domestic standard 1.3 The Composition of whenwriting their sustainability report. More spe- Reporting Companies cifically,10 reports refer to CASS-CSR1.0 (the “CorporateSocial Responsibility Report Preparation Guide”published by the CSR Research Center of • State-owned enterprises (SOEs) Chinese Academy of Social Sciences). Others refer released 78% of reports. to the “Environmental Information Disclosure With respect to the different types of ownership Guidelines for Enterprises Listed in Shanghai Stock ofreporting companies, state-owned enterprises Exchange”, the “Compiling Guidelines for Reports on (SOEs,including central-government enterprises8 Enterprises Implementing Social Responsibility” and andnon-CGEs) comprised an overwhelming majority the “Social Responsibility Guidelines for Enterprises for the third consecutive year.
5. It was found that some companies were not consistent in having their reports audited in 2010. 6. This data was obtained by counting the reports that explicitly refer to a guide or standard. 7. Some reports refer to two or more standards, leading to some overlaps. 8.Central-government enterprises do not include their subsidiary enterprises or holding enterprises. 7 A Journey to Discover Values 2010
In 2010, SOEs released 78% of the total number of Private companies released only 19% of the total reports collected for this research, rising steadily number of reports collected for this research, the compared to the previousyears. proportion dropping slightly from 2009 due to the scarce increase of report numbers. The numberof The number of reporting CGEs increased dramati- reports issued by foreign-funded companies cally by 96% over 2009, while the number of reporting (including joint ventures) increased significantly but non-CGE SOEs only grew by 27%. still accounts for a small proportion.
Figure 5: The Composition of Reporting Companies (2008-2010)
50 SOEs (non-CGEs) 325 411
29 Private Companies 112 135
Foreign Companies 22 (incl. Joint Ventures) 69 99
20 SOEs (CGEs) 27 53
0 100 200 300 400 500
No. of Reporting Companies in 2008 No. of Reporting Companies in 2009 No. of Reporting Companies in 2010
• Listed companies released 73% of the companies and those listed overseas) kept on growing reports and accounted for the large majority of the released reports (73%), although the proportion dropped Among the reporting companies, the number of slightly compared to the 78% in 2009. listed companies (including both domestically listed
Figure 6: Reporting Listed Companies (2010)
4% 2%
26% Listed in Shanghai SE 27% Listed in Shenzhen SE
Chinese-funded Companies Listed overseas 41%
Cross-listed
Not Listed
8 A study of sustainability reporting in China
• Sustainability reports were released in The number of sustainability reports increased inmost all provincial regions except Macao. provincial regions, though to different extents. Beijing, Shanghai, Jiangsu, Guangdong, Zhejiang and Fujian In 2010, sustainability reporting covered all provincial have retained their leadership and maintain steady regions (33) except for Macao. The first sustainability increases. The number of sustainability reports this report in Tibet was released, marking a breakthrough. year increased significantly in Shanxi and Liaoning. The number of provincial regions counting over 10 sustainability reports increased from 11 in 2009, to 16 in 2010.
Figure 7: Regional Distribution of Reporting Companies (2010)
116 120
100 92
80 67 65 61 60 60 47 46 40 43 36 37 32 40 28 26 27 19 18 19 17 16 17 13 15 15 15 20 10 10 10 10 12 9 12 9 10 12 2 6 5 2 1 2 0 0 0 0 0 0 0 Beijing Shanghai Jiangsu Guangdong Zhejiang Fujian Shandong Liaoning Shanxi Anhui Sichuan Hubei Henan Hunan Tianjin Yunnan
No. of Reporting Companies in 2008 No. of Reporting Companies in 2009 No. of Reporting Companies in 2010
Note: The figure only displays the provincial regions counting more than 10 reporting companies.
• Most reports were issued by companies electricity, transportation and logistics, IT, real estate active in the same industries. and chemical. Most industries experienced an increase in the number of reporting companies, with finance, As far as the industry distribution of reporting telecommunications, electronic manufacturing, companies is concerned, the majority of the reports petroleum and natural gas recording the highest aug- come from a small number of industries, including mentations. other manufacturing trades,9 finance, metallurgy,
9. The industries are classified mainly by referring to the “Industrial Classification for National Economic Activities” (GB/T 4754-2002) with minor modifications according to certain reports. In particular, the manufacturing industry is further classified into six categories, i.e. textile, medicine, automobiles, papermaking, electronic manufacturing and other manufacturing trades.
9 A Journey to Discover Values 2010
Figure 8: Industry Sectors of Reporting Companies (2010)
200
158 150
102
100 82
47 44 44 46 45 50 40 35 35 34 33 31 29 31 28 23 23 21 20 20 19 19 18 18 16 12 14 15 14 13 12 12 11 11 9 6 10 6 3 5 2 4 2 4 1 3 2 2 1 1
0 TradesManufacturing Other Finance Metallurgy Electricity Transportation, Logistics & Posting Information Technology Real Estate Chemical Medicine Manufacturing Textile& Apparel Food & Beverage Construction Electronic Manufacturing Comprehensive Industry Wholesaling & Retailing Coal Mining Automobiles Telecommunications Petroleum & Natural Gas Farming, Forestry, Husbandry & Fishing Papermaking Water Affairs Hotels and Catering Culture & Education Tourism & Entertainment Consulting
No. of Reporting Companies in 2009 No. of Reporting Companies in 2010
10 A study of sustainability reporting in China
2. Assessment of Reporting in China
2.1 Assessment Method In order to evaluate the completeness of the content in a report, the system has set three primary indicator categories (Strategy, Management and Performance), Similar to evaluations in previous years, this year’s which contain 12 secondary indicator categories, reporting assessment was based on the methodology including in total more than 80 questions. At the same “SynTao Assessment for Sustainability Reporting” time, corresponding supplementary indicatorshave (SynTao Assessment), gauging reporting practices been added to underline differences among company according two dimensions: information completeness industries. (Score A) and information quality (Score B).
Figure 9: Flowchart of Assessment
Preparations Assessment of Content Completeness Assessment of Information Quality for Assessment
Data Analysis Clarity
Qualitative Information Readability CSR Strategy Information Opinion Solicitation Industry- specific
Environment Environment Information Reliability Sample Screening Economy Management EconomyPerformance Timeliness Information Information Quantitative Information Comparability Report Collection Society Society
SynTao Assessment for Sustainability Reporting
11 A Journey to Discover Values 2010
Table 1: SynTao Assessment for Sustainability Reporting
Information Categories Information Completeness Information Quality (Score B) (Score A)
Level-1 Level-2 Breakdown of Qualitative/quantitative Information Qualitative Information Quantitative Information Components Aspects Questions Completeness Clarity Readability Reliability Timelines Comparability
Strategy vision, values & philosophy
strategy making & description
stakeholder analysis
opportunity & risk analysis
Management corporate governance
HR management
products & customers
environment management
social undertakings
Performance economic performance
environment performance
social performance
Table 2: Explanation of Principles
Elements Principles Definition of Principles
Qualitative Clarity The report is well-written and the wording is clear and effective. Information The writing is structured and logical. The length of the report is appropriate for the range of issues that are being discussed.
Readability The report uses appropriate presentation formats, e.g. pictures and tables. The report avoids specialized terms or explains them when utilized.
Quantitative Reliability Data sources and calculation methods in the report can be verified or are explained. Information Timeliness/geographical completeness Reporting period is clearly defined and statistics utilized in the report are as recent as possible.
Comparability The report allows vertical (over time) and horizontal (across industries) analysis.
only reports longer than 20 pages were selected (20 2.2 Sampling pages being the average length of all sustainability reports for the year 2009). Secondly, sampling was done on a stratified and random basis. Finally, samples FFor the scope of this assessment, SynTao selected 71 were selected based on ownership model of companies reports based on the sampling method as described and availability of complete report. below. Firstly, the sampling scope was designated,
12 A study of sustainability reporting in China
The sampling was done among reports longer than information completeness, and offer more relevant 20 pages in order to produce most relevant output. strengths and weaknesses insights.10 Reports of such length are more likely to offer
Table 3: Sampled Industries
Name of Industries11 Number of Companies Wholesale & retail 2
Financial industry 12 14
Information transmission & computer service 13 4
Mining industry 7
Transportation, storage & postal service 7
Construction industry 2
Cultural, sports & entertainment industry 2
Power, gas & water industry 6
Manufacturing 14 23
Real estate 3
Agriculture, forestry, husbandry & fishery 1
2.3 Assessment Results • Analysis of industry sectors
Concerning industry sectors, there are two categories 2.3.1 Comprehensive Analysis receiving higher scores. One category involves the industries directly related to consumers, such as wholesale and retail. The other includes the high • Analysis of company ownership energy consumption industries or industries seriously affecting the environment, such as transportation, With respect to corporate ownership, the sustainability mining and construction industries. reports released by central-government enterprises (CGEs) received the highest average score in the Financial and telecommunications industries display SynTao Assessment, which can be attributed to their the top scores, as they receive close media attention rich experience in corporate social responsibility and and public interest and because companies in these report compilation. Private enterprises have the lowest industries have strong willingness and capacity to average score but overall there is little variation across disclose information. The striking characteristic of companies of different ownerships. For their achieve- their reports is a wide coverage of corporate social re- ments, these private enterprises deserve accreditation sponsibility topics. and more assistance, such as the support provided by the Textile Industry Association for its member companies in CSR management and reporting.
10. For studies on report length and relevance, please refer to A Journey to Discover Values 2008 and A Journey to Discover Values 2009. 11. Classification of industries is based on theIndustrial Classification for National Economic Activities (GB/T 4754-2002). Listed in the table are the primary components only. 12. Including banking, securities and insurance industries. 13. Including telecommunication and computer service industries. 14. Ten manufacturing industries, including beverage production, clothing manufacturing, chemical materials and chemical production, specialized equipment manufactur- ing and vehicle manufacturing. 13 A Journey to Discover Values 2010
Figure 10: Scores by Company Ownership Types
50
40
30
20
10
0 Central-government Joint Ventures/Foreign State-Owned Enterprises Private Enterprises Enterprises (CGEs) Companies (Non-CGEs)
Scores
Figure 11: Scores by Industry Sectors15
60 54.77 52.15 51.30 50.47 49.74 50 45.16 42.92 42.29 41.32 40.21 40
30 21.37 20
10
0 Wholesale and Retail Financial Industry Information Transmission & Computer Service Mining industry Transportation, Storage and Postal Service Construction Industry Cultural, Sports and Entertainment industry Power, Gas and Water industry Manufacturing Real Estate Agriculture, Forestry, Husbandry & Fishery
15. Scoring Mechanism: The SynTao Assessment for Sustainability Reporting assesses sustainability reports in terms of completeness of information and quality of information. “Score A” stands for completeness of information and “Score B” stands for quality of information. The full mark of both scores is written as ONE. For the sake of easy comparison, a scoring system with a full mark of 100 points will be used to make comprehensive comparisons of reports.
14 A study of sustainability reporting in China
• Analysis of information completeness However, there is an obvious variation among the and quality quality scores received by the reports with the same completeness (see Figure 12). Some reports display rich information but the information quality needs Overall, the majority of reports feature a complete improvement, which results in the failure to convey content. More than 70% of report samples disclosed the substantial information needed by stakeholders. information on more than 50% of the indicators (with Similar to the 2009 assessment, the overall complete- a completeness score higher than 0.5 points). Actually, ness score is higher than the quality score. In other most of the assessed reports have exhaustive structures, words, the reporting quality needs improving although explaining their sustainable development regarding the overall content has been furnished. economic, environmental and social aspects.
Figure 12: Relation between Information Completeness and Information Quality
1.0
0.8 Information Quality (Score B)
0.6
0.4 Total Score
0.2
0.0 0.2 0.4 0.6 0.8 1.0
Information Completeness (Score A)
• Strategy, Management and Performance the CSR Performance component receives the lowest Scores score, which can be attributed to two reasons. One reason might be that some companies have not yet Among the three level-1 components (CSR Strategy, established a complete information management Management and Performance), Strategy is relatively system, with poor capacity of collecting and disclosing better disclosed, as both completeness score and performance information, especially regarding quanti- quality score are higher than those of the other two tative data. The other reason for such a low score lies in components. Next to Strategy is the Management the imbalance of information and absence of negative component, which includes management of economy, information in the reports. environment and society. The information related to
15 A Journey to Discover Values 2010
Figure 13: Strategy, Management and Performance Scores
Strategy Component 0.67 0.52
0.65 Management Component 0.52
0.54 Performance Component 0.45
0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8
Information Completeness (Score A) Information Quality (Score B)
2.3.2 Analysis by Level-2 Aspects participate in CSR management were discussed. Only a few reports were able to explain the basis on which and the procedure in which the stakeholders had been • 60% of the reports disclosed CSR identified. strategy; sustainable risks and opportunities analysis deepened Sixty percent of the reports analyzed the risks and opportunities for the companies’ sustainable Assessment results show that, among the content development. The rate rose slightly as compared with related to CSR philosophy and strategy, the most that of 2009. Many companies managed to combine adequately disclosed are the “CSR philosophy” and their operations, industry characteristics and socio- “CSR commitment”, with 80% of reports disclosing economic development trends, giving a reasonable
on these two aspects. The “CSR philosophy” aspect analysis of the risks and opportunities for their Employee management and training system involved a diversity of elements and the most frequently sustainable development.
used terms included “mission”, “vision” , “values”, etc. Employee occupational health management system Besides, 63% of the reports mentioned their CSR • Regarding corporate governance, basic information is complete; importance is strategy. However, less than 40% of the reports had Employee safety system concrete explanations on their strategy framework, attached to risk management disclosure
models and corresponding aims. Most of the reports Equal employment system The basic information about corporate governance is disclosed stakeholder information. Specifically, 82% exhaustive. More than half of the sampled companies Trade union organization of the reports listed the important stakeholders of the have disclosed information on company structure, companies, mainly by using tables where the stake- Employee occupational management information and decision making development system holders were listed in order of importance. About mechanisms. About 70% of the reports described 58% of the reports were able to list the main concerns Employee communication, complaints “risk management and control mechanism” and “law and feedback mechanism or expectations of the stakeholders as well as corre- compliance system”. sponding feedbacks given by the companies. In 59% of the reports, the access and manners for stakeholders to
16 A study of sustainability reporting in China
Figure 14: Assessment of “Strategy”
0.89 CSR Philosophy 0.71
Strategy Making & Description 0.63 0.53
Stakeholder Analysis 0.54
0.48 Opportunity & Risk Analysis
0.59 0.45
0.0 0.2 0.4 0.6 0.8 1.0
Information Completeness (Score A) Information Quality (Score B)
• Employee management is well disclosed “employee management and training system”, “health but employee performance disclosure lacks management system”, “safety guarantee system and key quantitative information equal employment system”. However, “employee communication, complaint and feedback system” is Employee management is the best disclosed scarcely disclosed, as 40% of the reports do not give component, with good scores for both information information about this aspect. completeness and information quality. More specifi- cally, the aspects featuring sound disclosure include
Figure 15: Assessment of “HR Management”
Employee management and 0.97 training system 0.70
Employee occupational health 0.82 management system 0.53
0.82 Employee safety system 0.54
0.74 Equal employment system 0.45
0.67 Trade union organization 0.35
Employee occupational 0.64 development system 0.41
Employee communication, complaints 0.58 and feedback mechanism 0.37
0.0 0.2 0.4 0.6 0.8 1.0
Information Completeness (Score A) Information Quality (Score B)
17 A Journey to Discover Values 2010
Compared with the almost complete disclosure in age and gender of employees. There is a widespread HR management, the employee performance aspect lack of information regarding employees’ rights was poorly disclosed, with the majority of reports guarantee, especially key quantitative information (see disclosing only such basic information as the number, Table 4 below).
Table 4: Quantitative Information Disclosure in Employee Performance
Disclosed Items Ratio of quantitative disclosure Employee gender/age/nationality/disabled or not/type of employment make-up 64%
Ratio of female members in management 34%
Ratio of collective contract coverage or labor contract signature 41%
Ratio of social security coverage 21%
Statistic of work-related injuries, occupational diseases and work-related accidents 22%
Employee training quantity by person/duration 81%
• As to product and service, disclosure 80% of the reports. Concerning performance, the of quality management system and disclosed information was concentrated on introduc- innovation mechanisms is substantial but tion to product/service, investment in innovation and customer accountability is poorly disclosed achievements.
More than 80% of the reports disclosed information With respect to customer accountability, 51% of the on product and service. Regarding management, the reports disclosed client satisfaction data and 62% of most adequately disclosed contents are “product/ the reports described the client complaint mechanism. service management” and “product/service innovation However, only 18% of the reports disclosed the mechanism”, which were dealt with in more than complaint ratio and complaint handling.
Figure 16: Assessment of “Product and Service Performance”
0.86 Basic information of product/service quality 0.52
0.78 New patents/techniques 0.53
0.52 Income coming from innovation 0.32
0.51 Results of client satisfaction survey 0.37
0.0 0.2 0.4 0.6 0.8 1.0
Information Completeness (Score A) Information Quality (Score B)
18 A study of sustainability reporting in China
• Regarding environmental disclosure, Most reports described greenhouse gases management management information outweighs and emission reduction efforts. Sixty-six percent performance information; most reports of the sampled reports described policies and describe management systems and mention measures to reduce greenhouse gases. Sixty percent the reduction of greenhouse gases of them disclosed performance information regarding greenhouse gases emission, but only half of these Most of the companies disclosed environmental reports provided concrete emission reduction data management and performance. The disclosure on which were themselves of low quality. The low management information outweighed performance quality data is characterized by lack of data source or information. The main disclosure is concentrated on calculation formulae (58%) and lack of timeliness or “energy conservation and emission reduction” and failure to cover the whole operation (53%). “green office”. • More than 90% of the reports disclosed Concerning environment management, 79% of the charity activities; there is a rich coverage reports disclosed the companies’ overall guidelines of community construction and influence and aims of environment protection and 56% of the reports described their environmental management The information on charity is the best disclosed systems. More specifically, the most disclosed topics topic, with 92% of the sampled reports disclosing are the policies and measures to reduce energy the companies’ charity system and 95% describing consumption, which are found in 90% of the reports. their participation in charity activities. The most Following the energy conservation policies and widespread charity activities included poverty-relief, measures come policies and measures to save water teaching assistance, environment protection and and reduce greenhouse gases, with disclosure rates of caring about the disadvantageous groups. In addition, 68% and 66%, respectively. 48% of the sampled reports disclosed their employees’ volunteering activities. As regards environmental performance, 85% of the reports disclosed the use and conservation of energy, The disclosure of community contribution and con- water and raw materials; 67% of the reports disclosed struction efforts covers a rich variety of activities, the use of recyclable energy and recyclable materials; adjusted to characteristics of the industries or 62% of the reports disclosed the emission of waste companies. water, solid waste and waste gas as well as the emission reduction efforts.
Case study: CSR Reporting and Social Responsibility Strategy Management of China Mobile
China Mobile Limited (hereinafter “China Mobile”) is a telecommunication company specialized in mobile voice services, data, IP telephone and
multimedia services. China Mobile is a telecommunication company with the biggest market capitalization and the largest scale in the world.
16 Its market capitalization in 2010 was 184.88 billion US dollars, ranked 16th in the Financial Times Global 500. The company has more than
17 140,000 employees and more than 520 million subscribers.
16. Sina.com, Financial Times releases FT Global 500 and 53 Chinese Companies are listed: http://finance.sina.com.cn/stock/usstock/c/20110630/234010075815.shtml 17. China Mobile’s CSR Report 2009
19 A Journey to Discover Values 2010
China mobile was one of the first Chinese companies to release sustainability reports,18 publishing the first sustainability report
entitled “Corporate Social Responsibility” in 2006. At the release ceremony, the chairman of China Mobile said, “In order to practice
responsibilities in a systematic, visualized and sustainable manner, we should adopt the latest methods of other international corpora-
tions to establish a standardized system in which the company shall perform its economic, social and environmental responsibilities,
by formulating corporate social responsibility reports regularly.” By 2010, China Mobile had published sustainability reports for five
consecutive years. From the evolution of the report content, one can find the very process in which, starting from scratch, its social
responsibility strategy advanced, its CSR philosophy took hold in the company and the CSR management mechanism was established
and perfected. The original aim of promoting management optimization via reporting has been achieved.
As regards corporate social responsibility strategy, China Mobile raised in 2006 its core values of “Enrich the Public’s Livelihood with
Noble Virtues” and its social responsibility philosophy, contained in this statement: “With perfect sincerity and integrity, we will strive
to fulfill our triple-sided responsibilities: our economic responsibility, our social responsibility and our environmental responsibility”.
Although the 2006 philosophy had interesting characteristics, it seems too weak to be the main content of the company’s social respon-
sibility strategy. Actually, the 2006 report content suggests that the company had not yet established a complete and clear philosophy of
social responsibility by then, which was still in its introduction phase, not to mention integrating CSR philosophy into the overall strategy
of the company. In the next three years, the social responsibility strategy began to perfect itself: in 2007, China Mobile suggested to
clarify social responsibility strategy under the “three level” framework and put forward five major projects in connection to the strategy;
in 2008, the report further described the mission, aim and overall design of social responsibility strategy as well as the main measures,
blending social responsibility into corporate management. Up to now, the idea of social responsibility in the reports has been emerging.
The 2009 report mentioned such rules as “fusion, concentration and expansion”, further perfecting the corporate social responsibility.
The report concentrated on the issues that fully displayed characteristics of telecommunication industry and reflected the reality of
the company. In a word, the 2009 report signifies a further fusion of China Mobile’s social responsibility implementation and corporate
operation.
Figure 17: CSR Strategy of China Mobile (2008-2010)
With perfect sincerity and integrity, we will strive to fulfill our triple-sided responsibilities: our economic re- sponsibility, our social responsibility and our environmental responsibility
Industry leadership and respect
Rural Life Culture Green Employee Program Program Program Program Volunteering Program
An Established and Robust CSR Management System
Source: China Mobile Corporate Social Responsibility Report 2008
18. In 2006, some Central Government-Owned Enterprises, such as China Ocean Shipping Group Company (COSCO), China Mobile, State Grid Corporation of China, Aluminum Corporation of China (CHINALCO), released their first sustainability reports and became the first Chinese companies to release sustainability reports. The year 2006 was thus dubbed The First Year of Chinese Companies’ Sustainability Reporting Era.
20 A study of sustainability reporting in China
The CSR management topic went through a long evolution from the mere charity office operated by China Mobile back in 2006. A CSR management system was set up in 2007. In 2008, after the intro- duction of a CSR management system and of the four components of design management, executive management, performance management and communication management, a CSR organization and work flow were established. In 2009, China Mobile inaugurated a unified standardized CSR management system covering the whole company that has been effectively implemented in close connection with business operations.
With regard to stakeholders, the first report did not deal with such content. The 2007 report started to add this kind of information, discussing stakeholders, the stakeholder communication system, their expecta- tions and China Mobile’s feedbacks. In the reports that followed, stakeholder information was provided on a more concrete and detailed basis, with strengthened coverage on communication and feedbacks, reflecting the growing attention on stakeholder communication in China Mobile’s compilation of reports and a clearer understanding of reporting purposes.
21 A Journey to Discover Values 2010
3. Assessment of Key Industries and Issues
3.1 Food & beverages food supply for the people, joint efforts have to be made by all concerned parts. The government needs to establish and improve relevant laws, regulations and 3.1.1 Background regulatory systems. More importantly, food companies must play a proactive role in this process to enhance As food is essential to life, food safety is much more their product quality and image. As far as information than an issue specific to a certain industry or field. Food disclosure is concerned, it is essential to establish safety is fundamental to a country’s development, the sound disclosure systems and disclose the information wellbeing of its people and the functioning of a society. on food safety in an accurate manner. Faithful During the 2010 China’s National People’s Congress and timely disclosure is not only indispensible for (NPC) and Chinese People’s Political Consultative improving companies’ supervision and management Conference (CPPCC), 439 NPC deputies jointly but also crucial for rebuilding public confidence and submitted a proposal on food safety. According to brand images. the proposal, the health of the Chinese people and of the nation as a whole relies on food safety and food In 2010, a total of 21 companies in the food and hazards are the worst harm for the country and people. beverage industry released sustainability reports 19, among which 18 20 were sampled for the SynTao Despite its serious implications, food safety has been Assessment. recently repeatedly threatened to such an extent that the public has lost confidence in the food industry. 3.1.2 Assessment results The industry image was severely damaged by grave food incidents of prestigious brands, such as the According to the assessment, the sampled reports of melamine-poisoned milk powder of Sanlu Group the food and beverage industry had a poor overall and the clenbuterol-contaminated meat of Shuanghui quality, with low scores for both information com- Group. Because no company can escape the impacts pleteness and information quality. More specifically, of a worsened industry image, the food producers inadequacy was obvious concerning three aspects, are conscious of the gravity of this issue. To help the i.e. social responsibility management, corporate industry rebuild its image and ensure safe and healthy governance and economic performance. Likewise,
19. Including a country report about China released by a foreign company, i.e. the Sustainability Report of Coca Cola (2008-2009). 20. We had no access to the reports of two companies, i.e. Shanxi Xinghuacun Fenjiu Group and Merchant China Co., LTD.
22 A study of sustainability reporting in China
the disclosure for products and environment was very only a small number of reports was far from being uneven, with complete information disclosed only on concrete. Only one report disclosed the company’s several indicators. Employee management and philan- CSR strategy as well as relevant implementation thropy, on the contrary, were relatively fully disclosed. guidelines and specific objectives.
Stakeholder information was also inadequate in • Poor and incomplete disclosure on social the sampled reports. Although more than half of responsibility management and corporate the reports disclosed information regarding the governance companies’ stakeholders, only 17% of them displayed an independent part for stakeholders, their expecta- The assessment results show that most food and tions and the companies’ responses. beverage companies failed to disclose CSR strategy information. The CSR strategy description found in
Figure 18: Completeness Score for “Social Responsibility Management” – Food and Beverage Industry
Vision, Values & Philosophy
Strategy Making & Description
Stakeholder Analysis
CSR Management System
Opportunities & Risks Analysis
0.0 0.2 0.4 0.6 0.8 1.0
Scores
Only a minority of the sampled reports disclosed of the sampled reports disclosed the composition information on corporate governance, while most of employees and only two reports disclosed the companies failed to disclose complete information on coverage of employee social insurance and the ratio of officers and directors, compliance and risk control. The employees signing employment contracts. Not a single companies’ efforts to promote CSR implementation in an report disclosed the statistics of employees’ work-re- industry or supply chain was also insufficiently informed, lated injuries or occupational diseases. as only one report disclosed regarding this matter. As regards environment information, approximately • While disclosure is exhaustive for half of the sampled reports disclosed the companies’ en- employee management and performance, vironmental protection guidelines and 40% described it is still uneven regarding environment the environment management systems. In particular, the reports disclosed mainly information specific to The sampled reports showed sound disclosure the food and beverage industry, i.e. raw materials and concerning employees, especially for three aspects, i.e. the disposal of liquid and solid wastes. However, the employees’ safety, occupational health and training. reports failed to cover other issues related to environ- However, quantitative information was not adequately mental protection. disclosed regarding employee performance. Only 30%
23 A Journey to Discover Values 2010
Figure 19: Completeness Score for “Environment Management” – Food and Beverage Industry
Training program for environmental protection
Environment management system
Policies, measures or technologies for reducing greenhouse gas emission
Policies, measures or technologies for saving water
Environmental protection principles
Policies, measures or technologies for reducing energy consumption
Assessment system for environmental impact of investment programs
0.0 0.2 0.4 0.6 0.8 1.0
Scores
Figure 20: Completeness Score for “Environment Performance” – Food and Beverage Industry
Integrated recycling of waste water, gas and solids
Renewable energy use
Environmental violations
Environmental protection investment
Emission and reduction of water, gas and solids
Emission and reduction of greenhouse gases
Usage of raw materials and water
“Green office” performance
0.0 0.2 0.4 0.6 0.8 1.0
Scores
24 A study of sustainability reporting in China
3.1.3 Incomplete disclosure on food disclosed the companies’ conception of or safety commitment to food safety and many discussed this issue in the very beginning, reflecting the companies’ The first and foremost mission of a food company awareness of food safety. However, Chinese food is to ensure that its products can meet consumers’ companies should realize that food safety conception needs without harming their safety and health. Food and commitment is not limited to production but companies should always bear this mission in mind in extends to the whole life cycle of the product, such as every step, from design and production to transporta- design, raw material purchase and product sale. tion. Food companies should ensure that the policies, management and performance related to food safety FromFrom food food safety safety to tocustomer customer service, service, AdvanceAdvance Food CompanyCompany is be disclosed fully in their CSR reports so as to meet the is dedicated to product consistency and quality. We expect needs of consumers and other stakeholders. According each Advance employee to be passionate about ensuring the to the SynTao Assessment, the companies have production and distribution of the wholesome finished products. realized the seriousness of food safety. Some reports have a separate chapter devoted to the issue and 2010 CSR Report of the US food producer Advance Food frequently refer to it in other chapters. For example, the report of Bright Dairy discussed the impact of • Disclosure on policies and management melamine incidents on the industry and emphasized of food additives is not complete the importance of food safety for this sector.
As regards food safety, additive use is a key issue and the However, the disclosure on food safety was still focus of government supervision and regulation. Food inadequate in most of the sampled report, which only companies should disclose their policies, management expressed the companies’ commitment or provided and monitoring measures for food additives. However, general statements without any detailed information none of the sampled and assessed reports explicitly on relevant policies or management. For example, one discussed the issue of food additives. Although a few sampled reports described the company’s supply chain reports mentioned the companies’ compliance with only by stating that “we have established a complete domestic or international standards related to food and controllable farm-to-table supply chain that can additives, they failed to make any further explanation. guarantee food safety and quality along the whole Moreover, the sampled reports failed to adequately chain, from planting, breeding and processing to disclose their preventive and monitoring measures for storage, transportation and terminal sale.” additive use in food production.
The following part will analyze the assessment results and the problems indentified in four aspects, including food safety conception and commitment, policies Eliminating the use of food additives to the greatest extent and management of food additives, supply chain possible is a prerequisite for product development at Seven & i. management, and violation of regulations.
Seven & i Food Systems has prepared a “Trading Terms & • The companies’ perception of food Conditions” document stipulating proprietary quality control safety is limited to food production standards for the stocking of foodstuffs. The company stocks only foodstuffs and products that comply with these standards
in order to ensure customers’ ability to consume the products Among the sampled and assessed reports, 88%
25 A Journey to Discover Values 2010
any time with peace of mind. The production area, cultivation We check relevant certificates and permits before purchasing
methods and distribution routes for fresh vegetables are from a supplier and verify the quality before putting
thoroughly verified, while processed foods undergo strict merchandise in storage. All of our suppliers are committed
inspections to identify the raw materials and determine to food quality and safety. We also require our partners to
whether they include any additives or allergens and examine provide reports of food quality and food hygiene inspection.
the preparation method and quality control conditions. We monitor the whole procedure of raw material transportation and delivery. We have launched a quality guarantee project
for “direct-contact package materials” to improve the safety of 2009 CSR Report of Seven & i Holdings package materials.
2009 CSR Report of Guizhou Maotai Group • Disclosure on supply chain standards and supplier qualification is deficient
98% of our contracts with direct suppliers include our code of For food producers, food safety requires not only conduct for international supply chain. the control on their own production but also the monitoring and management of their suppliers. As 35% of our contracts with indirect suppliers include our code of well as for CSR in general, supplier management in conduct for international supply chain. the food sector has become increasingly important. 2010 CSR Report of Kellogg Accordingly, sustainability reports should disclose the companies’ requirements on supplier selection • No information is disclosed on food and management and the implementation of the re- safety violations and follow-up handling quirements. Almost all assessed reports mentioned the safety standards to which food companies comply As the balance principle of information disclosure with, but only a few referred to specific supply chain requires, a report should disclose accurate information management policies or standards. As a matter of fact, on policy implementation, including violations most reports described the management of supply identified in food safety inspection, accidents with chain and suppliers in a very brief way and concen- grave impacts and the efforts made to handle the trated on how the companies guarantee suppliers’ accidents. interests and maintain cooperation with them. Only a small portion of the reports provided specific The assessed reports rarely disclosed and explained information about the standards and measures to the food safety violations of the companies. From the ensure food safety through the supply chain. information disclosed in these reports, it can be seen that many companies are aware of the importance of As regards the performance of supply chain violations. It is the case in the dairy industry, hit by management, Chinese food companies need to realize the melamine milk scandal: some dairy producers that their reports should disclose how many suppliers discussed in their reports about the impact of the have passed the qualification test and how they deal accident on the industry as well as on the companies with the suppliers that violate safety policies. and described the measures to prevent similar
26 A study of sustainability reporting in China setbacks. Obviously, the companies may have avoided companies so as to guarantee the right to know of revealing these incidents out of fear that the disclosure consumers and the public. By doing so, the companies might adversely affect themselves. However, as an in- can undoubtedly convey their commitment to food dispensible information category, violation deserves safety and build up a positive image. to be accurately and authentically disclosed by food
Procurement Safety System of Tsingtao Brewery Co., Ltd.
Verification of Products Confirmation of Annual Meeting Food Safety Supplier Examination of Supplier Supplier Food Safety Assessment Qualification Supplier Optimization Certificates Standards (Contract) Qualification
2009 CSR Report of Tsingtao Brewery Co., Ltd.
3.2 Banking for the first time made explicit requirements on social responsibility performance in the banking industry. Afterwards, local banking regulatory commissions As a major sector of the financial industry, banking issued the implementation guidelines. Consequently, is a key actor of a country’s economy and society and Shanghai Banking Regulatory Commission formulated therefore plays a steering and demonstrative role in the “CSR Guide for Shanghai-based Financial sustainable development.21 In recent years, banks have Institutions of the Banking Industry”. In 2009, to made proactive efforts in implementing social respon- facilitate social responsibility performance in the sibilities with many of them releasing CSR reports. The banking industry, China Banking Association (CBA) assessment results show that the reports of the banking issued the “CSR Guide for the Financial Institutions of industry performed better than many other industries China’s Banking Industry” (CSR Guide of CBA). regarding both information quality and information completeness. All the documents mentioned above made explicit requirements on disclosing social responsibility After collecting and assessing the 2010 CSR reports information. The Guide of CBRC stipulated that released by the banks within the List of China’s Top 500 “major financial institutions of the banking industry Companies,22 we analyzed the key issues, development shall release social responsibility reports on a regular trends and possible problems related to these CSR basis”, while the Guide of CBA required that “financial reports. institutions of the banking industry shall establish a CSR disclosure system and submit an annual CSR 3.2.1 Background report before the end of next July.”
Since 2007, the government has adopted a series of In response to the efforts of the government and measures to promote social responsibility among the regulatory authorities, banks have been proactive banking industry. In December 2007, China Banking in releasing CSR reports. In 2006, Shanghai Pudong Regulatory Commission (CBRC) issued the “Guides on Development Bank issued the first social responsi- Enhancing Social Responsibility Performance among bility report in China’s banking industry; in 2008, the Financial Institutions of the Banking Industry”, which number of reports increased abruptly with Industrial
21. The Guides on Enhancing Social Responsibility Performance among Financial Institutions of the Banking Industry, China Banking Regulatory Commission (CBRC), 2007. 22. In the List of China’s Top 500 Companies, there are 13 banks, among which 11 banks issued a CSR report. The 11 reports comprise the sample of our assessment. Please note that the quality of the sample can be better than the industry average since the 11 banks are large-scale banks.
27 A Journey to Discover Values 2010
and Commercial Bank, Bank of China, Bank of The assessment results show that the reports of the Communications and other commercial banks banking industry performed very well in terms of releasing their CSR report; by the end of 2010, the corporate governance disclosure. Among the sampled number of reporting banks amounted to 33, including reports, over 90% disclosed on “compliance system”, not only giant commercial banks but also some local “honest operation”, “risk management system”, “anti- banks. corruption system” and “board structure”. In particular, all the sampled reports disclosed information on the 3.2.2 Assessment results compliance system.
According to the SynTao Assessment, the banking The high quality disclosure in terms of corporate industry features a high reporting quality, especially in governance can be attributed to the great attention paid the aspects of corporate governance and management. to corporate governance. Industrial and Commercial In 2010, the reports of the banking industry dealt with Bank’s report reflects this trend, as it described some industry-specific issues, such as “green credit” corporate governance as a “fundamental project to in the environment aspect, and loans for underdevel- enhance core competitiveness”23 and emphasized the oped regions or small and medium-sized enterprises role of an improved corporate governance as a means in the society aspect. The following part focuses on to cope with new uncertainties and risks. Therefore the analysis of the assessment results regarding three corporate governance disclosure was highlighted in elements, i.e. corporate governance, environment and the banking reports and obtained high quality and society so as to evaluate the disclosure on key issues completeness scores. The high quality disclosure may and the development trends. also be explained by bank’s sophisticated management systems and tools and by their experience in collecting • Disclosure on corporate governance is and analyzing data and information. As such, they exhaustive, with adequate attention paid are likely to disclose more complete information in a to compliance and risk management systematic and accurate way.
Figure 21: Completeness Score for “Corporate Governance” – Banking Industry
Officers and directors
Decision-making mechanism
Board structure
Anti-corruption system
Risk management system
Honest operation
Compliance system
0.0 0.2 0.4 0.6 0.8 1.0
Scores
23. 2009 CSR Report, Industrial and Commercial Bank of China. 2009 CSR Report, Industrial and Commercial Bank of China.
28 A study of sustainability reporting in China
• Disclosure on environment “green credit policy” and “evaluating the environ- management is complete, with a notable mental risks and compliance procedures of investment focus on green credit projects” indicators. The reports disclosed the overall principles, policies and management systems for im- Compared with companies featuring high pollution plementing the green credit policy, e.g. the procedures and high energy consumption, banks are less to evaluate the environmental risks and environ- closely related to environment. However, as banks mental compliances of projects. In particular, 23% of can participate in resource relocation via financial the sampled reports mentioned that the banks incor- tools, they play a steering role in sustainability and porated energy conservation and emission reduction environmental protection. The SynTao Assessment into the credit granting and grading system; 36% of shows that the reports in the banking industry had the reports stated that the banks strictly followed the fairly complete disclosure on the establishment and principle of “one-veto for environmental protection” management of environment system, with over 56% in assessing and examining loan applications. of the sampled reports disclosing over 70% of the environment-related performance indicators. In credit examining and granting, we have enhanced the credit
access for the industries featuring high energy consumption
In terms of environment management, the sampled and high pollution and set explicit requirements for energy reports of the banking industry were clearly focusing conservation and emission reduction. We stick to the principle on green credit in 2010. Based on the green credit of “one-veto for environmental protection”. We have also policy, banks examine and verify construction established a dynamic system for tracking, inspecting and projects when granting credits so as to support envi- analyzing to examine and supervise the aforementioned industries before, during and after credit grant. We regularly ronment-friendly and energy-efficient projects and check our loan clients to identify and list those suspected of promote sustainable development.24 To facilitate the high energy consumption, high pollution and outdated capacity. implementation of this project, the government has The shortlisted clients are double-checked against the national adopted a series of policies, including the “Opinions standards for outdated capacity. The clients unqualified for the on Implementing Environmental Protection Policies standards will be put into the List of Quitting Clients and quit and Regulations to Control Credit Risks” jointly issued via a Client Quit Plan. For our clients violating environmental in 2007 by the former State Environmental Protection protection regulations, we limit or terminate loans. Administration (SEPA), People’s Bank of China and China Banking Regulatory Commission (CBRC), 2009 Social Responsibility Report of Bank of China the “Guiding Opinions on Further Enhancing Credit Structure Reform to Facilitate Stable and Fast Economic Growth” released in March 2009 by People’s Bank of China and China Banking Regulatory Commission (CBRC) as well as the “Notice on Comprehensively Implementing Green Credit Policy and Promoting Information Sharing” published by the Ministry of Environmental Protection and People’s Bank of China.
According to the assessment results, 90% of the sampled reports disclosed information regarding
24. “China’s Credit Development Policies 2010”, Policy Research Center for Environment and Economy, Ministry of Environmental Protection, P.R. China. The report is available athttp://www.prcee.org/upload/Attach/default/276074.pdf.
29 A Journey to Discover Values 2010
Figure 22: Completeness Score for “Environment Management” – Banking Industry
Training program for environmental protection
Environment management system
Policies, measures or technologies for reducing GHG emission
Policies, measures or technologies for saving water
Green credit policy and its management
Environmental protection principles
Policies, measures or technologies for reducing energy consumption
Assessment system for environment impact of investment programs
0.0 0.2 0.4 0.6 0.8 1.0
Scores
Despite the complete disclosure on the green credit specific data. Moreover, the data provided by different policy and its management, the sampled reports banks was not comparable, as the banks adopted performed poorly in disclosing the green credit different statistical standards and assigned different granting, with only 61% of the reports providing weights to specific items.
Loans for Energy-efficient and Environment-friendly Projects (Statistics for 2009)
Loan amount for the projects Percentage out of the total loan amount No. of companies involved in the loan (100 million RMB) 578.15 3.34% 364
2009 CSR Report of Bank of Communications
December 31, 2009 December 31, 2008 December 31, 2007
Outstanding loan Percentage out of the Outstanding loan Percentage out of the Outstanding loan Percentage out of the (100 million RMB ) total loan amount (100 million total loan amount (100 million total loan amount outstanding loan RMB ) outstanding loan RMB ) outstanding loan
Renewable energy 1,777.42 3.82 1,525.19 4.15 1,236.49 3.90 loans
Environmental protection 33.55 0.07 16.24 0.04 15.63 0.05 loans
2009 CSR Report of Bank of Transportation
30 A study of sustainability reporting in China
According to “Environmental Records of China’s banks is not limited to philanthropy but covers a wide Banking Industry”,25 a publication analyzing the re- range of issues. Banks should use credit as a tool to ports of 14 Chinese-funded listed banks, only four ensure a sound and effective allocation of financial banks (i.e. Industrial and Commercial Bank, Bank of resources and use financial products or services to Construction, China Merchants Bank, and Shanghai support underdeveloped regions or vulnerable groups. Pudong Development Bank) provided detailed infor- The SynTao Assessment indicates that the reports of mation on the loans to companies operating in the the banking industry covered a broad range of issues, industries featuring high energy consumption and with over half of the reports disclosing on “credit high pollution, and four banks (i.e. Industrial and policies and measures for small and medium-sized Commercial Bank, Bank of Construction, Shanghai enterprises”, “credit policies and measures for underde- Pudong Development Bank, and Industrial Bank Co., veloped regions”, “anti-money laundering systems and Ltd) provided detailed information on the loans to measures”, “policies and measures to support issues companies in the environment-friendly and energy- concerning agriculture, the countryside and farmers”, efficient industries. “microcredit policies and measures”, and “polices and measures to support national key industries”. • The society aspect features a wide Undoubtedly, the banks paid great attention to their coverage on industry-specific issues social responsibilities and disclosed increasingly exhaustive information related to this matter. Concerning the society aspect, the responsibility of
Figure 23: Completeness Score for Industry-specific Social Information – Banking Industry
Promoting the development of new-type national banks
Policies and measures to support ethnic minority regions
Policies and measures to support social well-being (educational loan, medical insurance, housing loan)
Financial education for clients
Policies and measures to support national key industries
Microcredit policies and measures
Policies and measures to support agriculture, the countryside and farmers
Anti-money laundry systems and measures
Credit policies and measures for underdeveloped regions
Credit policies and measures for small and medium-sized enterprises
0.0 0.2 0.40 .6 0.8 1.0
Scores
25. “Environmental Records of China’s Banking Industry”, Yu Xiaogang, 2010.
31 A Journey to Discover Values 2010
It is noteworthy that only 45% of the sampled reports 3.3 Carbon Disclosure disclosed on the “financial education for clients” indicator. The lack of client’s financial knowledge may lead to an inappropriate use of resources and To understand carbon disclosure in the 2010 CSR properties by individuals or organizations. Therefore, reports, the SynTao Assessment used all the CSR reports banks should make more efforts on financial released by the CDP26 Top 100 Chinese Companies27 education for their clients to enhance their ability to 7in 2010 as a sample and analyzed carbon-related control financial risks and should fully disclose on information in these reports regarding three aspects, this indicator. Financial education is closely related to i.e. “knowledge and perception”, “emission reduction banks’ businesses and is of great importance for the measures” and “emission reduction data”. financial stability of society. However, some of the sampled reports just provided information on how 3.3.1 The sample the banks use alerts or training to prevent clients from frauds, which is far from adequate. Disclosure on Among the CDP Top 100 Chinese Companies, 71 financial education should include the objectives of companies released CSR reports. The reporting financial education, the contents of financial education companies are distributed between 24 industries. and the target clients of different contents.
Figure 24: Industrial Distribution of Reporting CDP Top 100 Chinese Companies (2008 and 2010)
15
12
9
6
3
0 Pharmacy Transportation Banking Information Technology Food, Beverages & Tobacco Petroleum & Natural Gas Biotechnology Automobiles & Auto Parts Coal & Consumer Fuels Retail Hotel, Catering & Recreation Metals & Mining Financial Industry Construction & Engineering Construction Materials Appliances Household Endurable Machinofacture Public Utilities Steel & Iron Textiles, Clothing & Luxuries Real Estate Telecommunications Electrical Equipment Insurance
26. Carbon Disclosure Project (CDP) is the biggest joint initiative of investors around the world. Since 2002, CDP on behalf of investors have been sending letters to a number of multinationals, invited them to participate in the CDP surveys. In response, these companies have disclosed detailed data and information about climate changes’ impact on investment, which has been significant references for investors to make decisions. 27. The 100 Chinese companies with the largest market values. 32 A study of sustainability reporting in China
3.3.2 Assessment results of the sampled reports discussed their potential risks and opportunities. Only 19% of the sampled reports mentioned risks about climate changes. Although • Knowledge and perception the percentage increased compared to 2009, most discussions were very superficial with some reports Among the 71 assessed reports, 29% mentioned having only one sentence about climate changes. climate changes explicitly, 11% discussed the issue in What’s worse, only 4% of the sampled reports talked a separate chapter and 13% mentioned the issue in about the opportunities created by climate changes, the foreword. In particular, China Mobile, Baoshan mostly in the petroleum and natural gas industry. Iron and Steel, PetroChina and Lenovo Group all mentioned climate changes in the foreword to their As far as industrial distribution is concerned, nearly CSR report and discussed the issue in a separate half of the reports disclosing climate changes came chapter. Generally, although no more than a quarter from the financial sector, including banking and of the sampled reports provided explicit discussion on insurance. Companies in the industries characterized climate changes, obvious progress has been made over by high emission, despite their close relationship with last year.28 climate changes, seldom mentioned climate changes and relevant risks or opportunities in their reports. Climate changes may bring about a variety of risks and Obviously, these companies need to enhance their opportunities for companies, but only a small portion knowledge and perception of climate changes.
Figure 25: Coverage of Climate Changes in CSR Reports
Discuss the issue in a separate chapter 11%
Mention the issue in the foreword 13%
Mention the issue in other places 11%
Show awareness of the risks 19%
Show awareness of the opportunities 4%
0% 20% 40% 60% 80% 100%
• Efforts on reducing emission emission, the most frequently mentioned was “energy- saving programs” with 80% of the sampled reports Our assessment shows that the companies have made describing the measures or investments for saving proactive efforts in dealing with climate changes, energy. Another 14% of the reports disclosed the with nearly 90% of the sampled reports disclosing use of clean energy or renewable energy, but mostly relevant information. The disclosure analysis of three concentrated in four industries, i.e. public utilities aspects, i.e. “energy-saving programs”, “using clean (power), petroleum and natural gas, information or renewable energy” and “carbon trade” generated technology and transportation. Carbon trade was the following results. Among the efforts to reduce the least disclosed aspect with only 6 reports (23%)
28. In this assessment, 20 reports made explicit reference to climate change, compared to only 7 in 2008.
33 A Journey to Discover Values 2010
making relevant disclosure, 3 of which were from the i.e. production and R&D. As regards production, banking industry. companies in the automobile industry increased investment into energy-saving and carbon-re- As far as industrial distribution is concerned, the ducing technologies to accelerate the upgrading of assessment reveals the following industry-specific production equipment and techniques, to enhance the features in terms of dealing with climate changes: management of energy use, and to tap energy-saving potentials. They also developed plans for energy-saving • The banking industry focused on the green credit reformation in order to reduce the energy consumption policy, controlling the loans to the industries featuring by unit output value and control greenhouse gas high energy consumption, high pollution and low pro- emissions during production. In terms of research and ductivity while supporting the clean energy industries development, the sampled reports showed that most so as to promote industrial transformation, reduce companies increased investment into the R&D of dis- emission and save energy. Among the sampled reports placement vehicles, Hybrid Electric Vehicle (HEV) or of the banking industry, 13 reports disclosed the clean energy vehicles and disclosed some technical banks’ measures and activities to promote the green details and development plans. For example, in its credit policy and half of the reports also disclosed sustainability reports, Dongfeng Automobile listed performance information such as the amount of green its patents and achievements in the R&D of Hybrid credits granted and the energy-saving and environ- Electric Vehicle (HEV) or electric automobile, while mental protection programs. Shanghai Automotive introduced the progress and prospects of its clean energy automobile production. • The automobile industry carried out energy-saving and carbon-reducing programs in two aspects,
Figure 26: Coverage of Emission-reduction Efforts in CSR Reports
Energy-saving programs 80%
Using clean or renewable energy 14%
Carbon trade 7%
0% 20% 40% 60% 80% 100%
The assessment also shows that some banks partici- changes is conducive to carbon disclosure in two ways. pated in international cooperation and other similar Firstly, the banks can absorb the experience of their activities related to climate changes, especially the overseas counterparts, improve their knowledge and Global Compact of UN and the Campaign against perception of the issue, and enhance their willingness Climate Change (CaCC). The Equator Principles29 have to make carbon disclosure. Secondly, the companies also attracted some attention from domestic banks. In will gradually standardize and update their carbon this aspect, there is great progress. In the long run, in- disclosure framework and improve their capacity of ternational participation of domestic banks in climate collecting and disclosing relevant information.
29. The Equator Principles (EPs) are a voluntary set of financial standards, established by major financial organizations around the world on the basis of the policies and guidelines of financial corporations and banks, for determining, assessing and managing social and environmental risks in project financing.
34 A study of sustainability reporting in China
Figure 27: Emission Coverage in CSR Reports – Industrial Distribution
100%
80%
60%
40%
20%
0% Insurance Electrical Equipment Telecommunications Real Estate Steel & Iron Public Utilities Machinofacture Appliances Household Endurable Construction & Engineering Financial Services Metals & Mining Coal & Consumer Fuels Automobiles & Auto Parts Petroleum & Natural Gas Food, Beverages & Tobacco Information Technology Banking Transportation
• Emission data and emission-reduction whether the data had been audited by a third party. objectives When disclosing energy consumption amount, only a few reports provided data-collecting methods and Among the sample of CDP Top 100 Chinese statistical ranges. Companies, 60% disclosed quantitative information about greenhouse gas emission, covering such aspects as energy consumption amount, greenhouse gas emission reduction amount, and carbon trade volume. As regards industry variations, companies of the Most companies disclosed both direct and indirect industries featuring high energy consumption and high energy consumption amounts, but few companies emission were very active in disclosing information on provided their emission load of carbon dioxide. greenhouse gas emission. In particular, the disclosing Moreover, none of the sampled reports mentioned rate reached 100% for the iron and steel industry, how the greenhouse emission load was calculated and public utilities (power) and petroleum, and over 50%
35 A Journey to Discover Values 2010
for other industries such as coal, non-ferrous metal and machinofacture. Comparatively, the disclosing rate was low for the industries with low emission, such as finance and the service sector, which reflects that companies in these industries are less aware of greenhouse gas and have not established relevant data collection and analysis mechanisms. It is noteworthy that although the transportation industry has direct greenhouse gas emission, the sampled companies in this industry did not perform well in disclosing greenhouse gas emission and emission-reducing efforts.
Among the 71 sampled reports, nearly 14% disclosed the companies’ plan and objectives to reduce greenhouse gas emission. More particularly, only three reports disclosed quantitative emission-reducing objectives. Nevertheless, some other companies depicted their progress compared to the objectives they set in the previous years. Therefore, these companies may have an objective but did not disclose it.
As the first company to sign the Energy-saving Voluntary
Agreement with Ministry of Industry and Information, we
promised to reduce our electricity consumption per unit value
by 20% by 2012 over the consumption in 2008, saving a total
electricity volume of 11.8 billion kilowatt hour.
2008 CSR Report of China Mobile
In terms of saving energy and reducing emission, our objective
is that we will approach or reach the international advanced
level in the aspects of energy consumption, water consumption
and material consumption in three to five years’ time and
reduce our energy consumption by 20% by the end of the 11th
Five-year Plan.
Zoomlion Heavy Industry Science and
Technology Development Co., Ltd
36 A study of sustainability reporting in China
4. Integrated Reporting
4.1 What is “Integrated model. The practice requires not only the consolida- Reporting”? tion of financial, environmental, social and corporate governance performance reporting systems, but also more thorough sustainability considerations with With the growing demand of stakeholders for regard to internal management and operations, and corporate transparency, more and more companies the necessary incorporation of sustainable strategy start to release sustainability reports on a voluntary into the overall development goal of the company. basis, in order to disclose the nonfinancial information in such aspects as environment, society and corporate Integrated reporting, of course, does not stipulate governance, as a supplement to financial information. that a company should release only one report, but However, the separation of annual report and sus- rather suggests the necessity of combining financial tainability report leaves the reporting party unable to and nonfinancial information. It does not keep from display a whole picture of its operations, preventing releasing specialized reports for specific purposes, as it the company from incorporating the key information is supposed to display an overall perspective and more such as risks, influence and opportunities. In order to sustainable considerations. Reports may better convey overcome these obstacles, the concept of integrated information via internet technology and multimedia reporting emerged and has been quickly accepted means. since then.
Integrated reporting,30 briefly speaking, is a compiled report that incorporates the traditional financial 4.2 Roles of Integrated Reports information and such nonfinancial information as environment, society and corporate governance into • Clarify the position of sustainability in an annual report. corporate strategy
Integrated reporting is not the mere publication With the contribution of all parties, the concept of of what used to be two reports in one, but rather sustainability is gradually taking hold. However, an improved and in-depth corporate governance
30. Also translated into Chinese as “统一报告” or “整合报告”, literally meaning “unified report” and “consolidated report” respectively.
37 A Journey to Discover Values 2010
the conflict between sustainability and short-term management to understand the influence of sustain- returns stands out to such an extent that company ability elements on the everyday operation of the management must have a vision beyond the general company, so as to maximally improve the implemen- financial performance, must face the problems co- tation of sustainability plans. ordinating various development elements, and must harmonize sustainability and profit, in order to create It is widely observed that quantifying and imple- lasting value for the company. Armed with integrated menting sustainability goals is difficult and that, due reporting, a company can better understand the to their conflict with financial performance, they position of sustainability in its strategy and set up end up being often neglected in the day to day work. goals and responsibility assignment systems matching The compilation of integrated reports will effectively its current financial objectives. This practice can improve this situation, as the breakdown of reporting also support reformulating the relationship between indicators and delegation of disclosure requirements financial indicators and nonfinancial indicators, will naturally create a relationship between financial which will help the company to draft better corporate performance and nonfinancial performance, with strategy. Although under most circumstances sus- striking corporate characteristics. In an integrated tainability does not go against short-term returns reporting mechanism, the company management will and financial performance as it contributes to risk find it easier to model and analyze different indicators. avoidance, companies still have to clarify the goals and Consequently, a more balanced performance its own value growth mode. assessment system and a sound internal management system will be established. By releasing an integrated report, a company will be able to explain its nonfinancial investment in terms of The practice of integrated reporting draws a company’s financial returns and justify its cognition and choices departments or sectors closer to each other and when confronted with a complicated development enables them to better understand the roles of other environment. To do that, however, the management departments in a larger picture, so that they can of a company must handle development issues in a relate their short-term performance to the long-term more prudent and balanced manner. Quantifying the development of the company. In other words, indicators in integrated reporting will (1) expand the integrated reporting can strengthen collaboration overall strategy to include nonfinancial sectors; (2) between departments, which can in turn contribute to cover a variety of sustainability issues; (3) and expand the effective implementation of sustainability strategy. overall strategy in temporal terms, i.e. reflecting the balance between long-term growth and short-term At present, the division of financial performance and returns. nonfinancial performance isolates CSR department from other departments to such an extent that • Help coordinate and implement CSR department may be marginalized. Integrated sustainable goals reporting, encouragingly, can raise the status of CSR department, which is conductive to the further imple- Integrated reporting can encourage the senior mentation of CSR projects. management of the company to be more implicated in the definition sustainability strategy and performance, • Fully display corporate operation rather than simply delegate it to the CSR department. Actually, compiling integrated reports can help the Among the stakeholders, investors are in a relatively
38 A study of sustainability reporting in China special position where they not only benefit from communicate with different groups. However, the the improvement of corporate performance, but also specialized information releases do not help all stake- direct the corporate development. In other words, holders to understand the whole picture of issues. By the sustainability strategy must be approved by the contrast, integrated reporting can, by consolidating investors. The currently separate reporting system, financial and nonfinancial information, provide a however, restricts the role of sustainability reports complete picture for stakeholders to make informed and dwindle their importance in the eye of investors. decisions. Although some investors remain interested in some of the CSR practices, most of them are not able to extract We must be wakeful to the fact that specific interest relevant information to investment returns directly groups always have different, sometimes conflicting, claims on interest. Therefore, it has become a challenge from reports. This situation not only affects the and driving force for companies to convey their interest of companies in writing sustainability reports development philosophy fully and explicitly to different but also makes it more difficult to conduct long-term stakeholder groups and win their support. With analysis on risks and opportunities. The emergence integrated reports, stakeholders can compare their of integrated reports will effectively eliminate the claims or interests to the ones of other stakeholders, differences between investors and other stakeholders, and thus pursue more balanced and reasonable goals. so that the investors can make informed investment Integrated reporting will help different stakeholders decisions that are in their own interest, after compre- to share the information of corporate development hending the companies’ operation and development on the same platform, which obviously promotes col- philosophy. laboration and participation in sustainability issues by different parties. Integrated reporting itself is a balance between financial and nonfinancial needs, as all performance information shall go to different investors whose The International Integrated Reporting Committee (IIRC) aims business interests are related to the future development to establish a framework for integrated reporting that can: direction of the company. Integrated reports reflects 1. Meet the information demand of long-term investors by not only the sustainability perspective of the company displaying long-term and general decisions; but also the special environment the company finds 2. When making decisions affecting long-term performance and situation, reflect the relationship between environment, itself in. In integrated reports, the financial-non- society, corporate governance and financial factors, and clarify financial performance analyses can generate different the relationship between sustainability and economic value; development modes, pointing at distinctive risks and 3. Provide an appropriate framework that gives allowance to opportunities as well as to different investment returns. social and environmental factors when making disclosures Only after a comprehensive study can the investors and decisions; accurately assess the development of a company and 4. Reformulate criteria for performance assessment so that they are not obsessed with short-term performance; make the optimal investment combination. 5. Through the management of everyday operation, bring reports closer to the needs of information users. • Clearly foster stakeholder participation
Source: International Integrated Reporting Committee 31 The main aim of corporate information disclosure is communication with different stakeholders. In order to cater for the concerns of different groups, companies have to release specialized reports separately to
31. Website: http://www.theiirc.org/
39 A Journey to Discover Values 2010
4.3 Development History and sustainability report into one as well as bring the subject of integrated reporting into the G20 Summit Meeting that would be held in November 2010. In recent years, more and more discussions on integrated reporting have been carried out, by Some countries are also trying to promote the con- governments, scholars, investors, standard makers, solidation of reports. Denmark is the first country to companies and organizations, who are trying to find require that large corporations shall put nonfinancial out how integrated reporting should be developed information into annual financial reports. The UK and how disclosure requirements of financial and has adopted similar practices. The British government nonfinancial information can be coordinated. For aspires to require companies to add nonfinancial example, in 2006, UK’s Prince of Wales launched information into their operation and financial reports. the Prince’s Accounting for Sustainability Report, South Africa is stepping towards the same direction. In aiming at “developing practical guide and tools for 2010, the Johannesburg Stock Exchange required that incorporating sustainability into decision making and all listed companies release their integrated reports reporting process”. In August, 2010, the International following the King Codes on Corporate Governance- Integrated Reporting Committee was established, with King III. the mission to explore combining financial report
Table 5: Chronicle of Integrated Reporting
Time Initiator Events
1994 SustainAbility SustainAbility put forward Triple Bottom Line and put it into sustainability reporting. The original aim of Triple Bottom Line is combining financial and nonfinancial information into one document.
1999 PwC (Pricewaterhouse Coopers) PwC introduced the Value Reporting Framework, which was called Corporate Reporting Framework. The framework identifies the reporting indicators applicable to all industries and companies, such as market survey, strategy and structure, value management and performance, articulating the fact that these indicators are to be assessed by cor- responding performance criteria.
Institute of Directors in Southern Africa The institute released King Report on Corporate Governance for South Africa 2002.
2004 SustainAbility SutainAbility set the agenda for implementing integrated reporting. At the same time, the opportunities and challenges facing integrated reporting were suggested.
Enhanced Business Reporting Consor- The consortium raised a voluntary and international disclosure framework for nonfinancial information disclosure in tium (EBR360) business reports, including key performance indicators. The framework can reflect the current and future performance information.
2006 Alan Wills Based on the Corporation 20/20 Principle, Alan Wills put forward a new model for corporate reporting, including the incorporation of financial and nonfinancial information into one report.
The Prince’s Accounting For Sustain- The project released the Connected Reporting Framework, in collaboration with traditional financial information, pro- ability Project vided key sustainability information and disclosed the overall performance in a more balanced manner.
2008 Corporate Register Best Integrated Report Award was set up.
KPMG & SustainAbility They jointly conducted a survey on global reporting initiative, which suggested that the integrated reporting practice tends to be supported by stakeholders such as investors, councilors, NGO members, etc.
World Intellectual Capital Initiative This organization aims at developing a global voluntary framework to assess and report corporate performance for (WICI) shareholders and other stakeholders. This framework is based on the KPMG framework and the key ESG perfor- mance indicators of DVFA (Deutsche Vereinigungs für Finanzanalyse und Anlageberatung).
2009 Council of Europe-Discussion on ESG There were five research committees discussing about driving force, resistance, challenges of implementing CSR and (environmental, social and governance how these problems were to be solved from the perspectives of different stakeholders. issues)
Johannesburg Stock Exchange The Exchange required that all listed companies should release integrated reports following the guidelines of King Codes on Corporate Governance-King III.
2010 International Integrated Reporting The establishment of International Integrated Reporting Committee aims at discussing the subject of incorporating Committee (IIRC) financial reports and sustainability reports into one.
Robert Eccles & Mike Krzus They wrote the book titled “One Report: Integrated Reporting for a Sustainable Strategy”, which states that integrated reporting system is necessary for corporate sustainability strategy and social sustainability. The book proposes imple- mentation plans and discusses why every country in the world should adopt integrated reporting.
40 A study of sustainability reporting in China
4.4 Integrated Reporting SE, SolarWorld AG, Veolia Environment, Philips, Practices United Technologies Corporations, etc. are found in various industries
Although integrated reporting has a short history, Around the world, the number of integrated report some companies have already started to adopt this releases is growing every year. In recent years, the method. Novozymes, a Danish biotechnological fastest growth is found in Brazil and South Africa, company, which released its first integrated report32 in where integrated reports are mushrooming, under the 2002, is the earliest known pioneer. The current prac- promotion of local governments. titioners of integrated reporting, which include BASF
Figure 28: Number of Integrated Reports Globally
250
200
150
100
50
0 2004 2005 2006 2007 2008 2009 2010
Source: Corporate Register
Table 6: Companies Releasing Integrated Reports and Time of First Releases
Time Companies
2002 Novozymes
2003 Natura
2004 Novo Nordisk
2006 Fibria
2007 BASF
2008 Alstom
Aviva
British Telecom(BT)
HSBC
Novartis
Philips
United Technologies
Van Gansewinkel
2009 American Electric Power
Anglo Platinum
Rabobank
TNT Logistics
Source: Oxford University33
32. Eccles, R.G., Krzus, M. (2010) One Report: Integrated Reporting for a Sustainable Strategy, Wiley, New Jersey, USA 33. Oxford University: Said Business School, Integrated Reporting for a Sustainable Strategy
41 A Journey to Discover Values 2010
Case Study 1: United Technologies Corporation Integrated Report
United Technologies Corporation (UTC) is a company providing hi-tech products and services for aviation industry and construction
industry. The company has more than 220,000 employees and nearly 60 billion US dollars of assets. On 25th February, 2009, the
company released the first integrated report combining financial report and sustainability report. This year, they released their Financial
and Sustainability Report 2010. The management of UTC stated that, “Before starting to take up integrated reporting, our company was
already used to putting the sustainability report and financial report into one portfolio.” At the same time, compared with other integrated
reports, the reports by UTC have been noted for their brevity and conciseness, with only 92 pages for the Financial and Sustainability
Report 2010. In what way did they incorporate financial report and sustainability report? What can be learned or absorbed by the
Chinese enterprises determined to adopt integrated reporting? Let’s take a closer look at the three characteristics in the UTC 2010
Financial and Sustainability Report.
• Responsibility comes first
The president’s statement in the beginning of the report explicitly pointed out the company’s values concerning the relationship between
corporate operation and corporate social responsibility, i.e. the outstanding financial performance is based on the management of
responsibilities. Louis R. Chênevert, the CEO, introduced the realization of EHS (environment, health and safety) goals in the last four
years since 2006 and introduced the expected goals of the company before 2015. The first 26 pages of the report mainly expounded
corporate governance, operation values and CSR strategies. After a concise summary of the performance in 2010, the report devoted
more pages to CSR management underlying these achievements.
• Disclosure of CSR-related indicators
Short as the report is, it thoroughly discloses nine indicators of United Technologies Corporation(UTC) in the last four years since
2006, namely GHG (greenhouse gas) reduction, industrial pollution reduction, water conservancy, casualty rate, supplier EHS, energy
efficiency and materials of concern, etc. The results show that the performance of the company has been improving in terms of these
indicators. At the same time, it is noteworthy that the UTC disclosed main financial and nonfinancial information in the same manner,
displaying all data related to operation in an explicit fashion (see Figure 29 below).
Figure 29: Main Financial and Nonfinancial Information of UTC
Net sales, Diluted earnings per Cash flow from Non-GHG emissions GHG emission Industrial process waste Dollars in billions common share, operations, (Million lbs) (Million metric tons of CO2e) (Million lbs) Dollars per share Dollars in billions
Supplier EHS Research and Dividends paid per Debt to capital, Percent Worldwide water Lost workday incident rate (Percent of critical development, common share, consumption (Cases/100 employees) suppliers meeting Dollars in billions Dollars per share (Million gals) expectations)
Note: The numbers 06, 07, 08, 09 and 10 refer to corresponding years of the first decade in the 21st century. The number 15 refer to the goal of UTC for the year 2015. Source: Financial and Sustainability Report of UTC 2010.
42 A study of sustainability reporting in China
• Incorporating environment impact into financial information
The 66-page financial section of the report offers detailed and quantitative data concerning the environment. The report specified the 596 spots where the company assumes its environment responsibility and disclosed its special funds for environment recovery for 2008, 2009 and 2010.
Case Study 2: Novozymes Annual Report
Novozymes is a biotechnology company, with headquarters in Denmark and offices around the world. As one of the best practitioners of corporate disclosure in the world, Novozymes released the first integrated report in 2002 and is regarded as the earliest company to release integrated reports. In 2010, Novozymes was awarded the Best Integrated Reporting Prize by State Authorized Public Accountants. Below are three of the spotlights in their 2010 report.
• Disclosure of main performance information
The 2010 report incorporated financial performance and sustainability performance. In its opening remarks, the report stated that “The year
2010 witnessed the strong growth of Novozymes in sales, profit and cash flow. We have reached the financial goals for 2010 and done well in sustainability.” Meanwhile, the report explicitly displayed the key performance information, including not only such financial information as sales growth and ROIC, but also sustainability indicators such as water efficiency, energy efficiency and CO2 emission, etc. It is worth mentioning that these data were claimed to have been audited by accounting firms.
Table 7: Key Performance Indicators of Novozymes
2010 Key Performance (Currency: DKK)
Sales growth 15% EBIT growth 25% EBIT margin 21.8% Net profit growth 35% Free cash flow before acquisitions DKK 998 m Net investments excl. acquisitions DKK 1,326 m ROIC 22.2% Water efficiency (compared to 2005 index) 29% Energy efficiency (compared to 2005 index) 30% Reduction in CO2 emission through our customers’ application of our products (ten thousand tons) 40 Frequency of accidents with absence per million working hours 4.1
Source: Novozymes Report 2010
• Make full use of the Internet and Web 2.0
The success of the Novozymes Report lies in its full use of the Internet and Web 2.0 to achieve two effects which are impossible for traditional paper-based reports. First, the hyperlinks can better demonstrate interrelation between financial information and nonfinancial information, showing the overall picture of the company to the audience. Second, Novozymes provided a lot of supplementary information on its annual report website to meet the demands and preferences of stakeholders. This suggests that an integrated report is not merely a report. Rather, supplementary information can be added to the report, in order to better meet the needs of stakeholders. In this aspect, Novozymes can
43 A Journey to Discover Values 2010
be said to have done its best, as it even provided a function allowing the individual readers to have their tailor-made reports by selecting the
content they need or like.
• Reporting and auditing
When compiling its report, Novozymes followed the International Financial Reporting Standards as well as financial standards required in
the corresponding countries and exchanges. At the same time, the report disclosed nonfinancial information following the Global Reporting
Initiative’s (GRI) G3 Sustainability Reporting Guidelines.
The report has passed the audition of accounting firms, not only the audition of traditional financial section, but also the audition of social and
environment section based on the A A1000 Standards.
44 A study of sustainability reporting in China
5. Sustainability Reporting Trends
• The number of reports will continue • The 12th Five-Year Plan will be rising incorporated in sustainability reports
In recent years, the number of sustainability reports The Twelfth Five-Year Plan for National Economic in China has been on the rise. We believe that this and Social Development of China (the 12th Five-Year trend will continue, with more companies joining Plan) was officially issued in March 2011 and stated sustainability reporting. This trend may be driven by the national strategic intents, government priorities, the fast CSR development in China, which will help and expectations for market entities. The Plan will more Chinese companies be informed of social re- have profound and massive influence on China’s sponsibility and sustainability reporting. For these companies. A detailed reading of the Plan indicates companies, reporting is an effective tool to enhance that various parts of the Plan reflect the philosophy of their brand image and is often used as a starting point sustainable development. The balance of Triple Bottom for their CSR work. Line, namely economy, society and environment, is highlighted in the main objectives set by the Plan, i.e. However, the increase rate will be unpredictable. The stable and fast economic growth, significant progress number of sustainability reports started growing in in restructuring, upgrading in science and education, 2007 and reached a peak in 2009, but the growing rate achievements in resource conservation and envi- fell slightly in 2010. In the near future, the increase ronmental protection, improvement in people’s life, rate is difficult to forecast. We predict that the number advances in social construction and deepening of of sustainability reports will have another abrupt reform and open-up. As a matter of fact, the Plan has increase, fuelled by the promoting efforts of local laid down a solid foundation for Chinese companies to governments, local state-owned assets supervision implement their social responsibilities. and administration commissions, stock exchanges, regulatory authorities of private enterprises and We predict that the 12th Five-Year Plan will have trade associations. Otherwise, the increase rate may directive impacts on the CSR performance of Chinese gradually trend down. companies and will be reflected in the sustainability
45 A Journey to Discover Values 2010
reports released in the following years. Firstly, the • External stakeholders will make more aspects highlighted by the Plan will become key use of sustainability reports words frequently mentioned in the reports, such as new-type village construction, transformation and As the number of sustainability reports rises and the upgrading, green development, innovation and social information disclosed becomes richer, we predict that management. Secondly, the quantitative indicators external stakeholders will make more use of sustain- developed by the 12th Five-year Plan will become ability reports. the disclosure indicators in the reports, such as unit energy consumption and unit carbon emission. These At present, the major users of sustainability are impacts may be observable during the next five years. professional organizations, NGOs and the media. Professional organizations assess the quality of sus- tainability reports, like SynTao with its Assessment or • There will be a wider variety in the RKS with its CSR rating. NGOs use the information quality of sustainability reports in sustainability reports to assess the environmental and social performances of the reporting companies. At present, sustainability reporting in China has a poor For example, the newly-published “Environmental overall quality, with great variations among individual Records of China’s Banking Industry” (NGO Version) reports. We believe that this situation will last for a extracts a number of environmental policies from long period of time. However, the quality of individual the sustainability reports of banks. The media usually reports may be more divided with some companies criticize or reveal the inappropriate disclosures in accumulating more experience and improving the sustainability reports. For example, after Shuanghui quality of their reports. Group issued its 2010 CSR report in early 2011, the media pointed out that Shuanghui Group failed to As time goes on, more companies will release their disclose the clenbuterol incident. Although the charge third or fourth sustainability report. These companies may not be valid,34 it reflects that sustainability reports will probably improve the quality of their reports and have some “loyal and critical” journalist readers. We follow on the path of “sustainability reporting creates believe, these critical readers will create a catfish effect values”. The improvement will be driven by two factors. and help improve the reporting quality. We predict Firstly, after three or four years’ reporting, they will that more readers will try to find faults in sustaina- have accumulated some experiences. Secondly, if the bility reports, which will involve more companies and companies do not improve their reporting quality, the industries. reports will have little effect. Then, they will have no choice but to make progress. Of course, some companies However, the imbalanced disclosure may still hamper may linger on with poor-quality reports, but these the full use of sustainability reports, especially the use reports will not become the mainstream. Therefore, we of investors for stock value analysis. Some companies will find both companies that quit after releasing the disclose only positive information but not negative first or second sustainability report and companies that information, which will not be trusted by investors. issue their third or fourth report with a better quality. Therefore, individual reports will not become a tool The latter will be the focus of our future research. for investors to evaluate listed companies. Hopefully,
34. The charge may not be valid because the 2010 Report of Shuanghui Group is intended to cover the information of 2010 only, while the clenbuterol incident happened in 2011.
46 A study of sustainability reporting in China after listed companies issue their fourth or fifth to research into automatic information collecting. reports, certain investors will collect more information Chinese Academy of Social Sciences has launched about a particular company and assess its value and a report compilation program to facilitate semi- trends. The sustainability reporting will be valuable for automatic report writing. We expect progress in investors. both directions, although human work can never be replaced.
• Electronization will be inevitable
Electronization will be inevitable for the information • Integrated reporting will be introduced of sustainability reports to be better used, especially to China in capital markets. In the aspect of accounting information, eXtensible Business Reporting Language Around the world, integrated reporting is in the (XBRL)35 has been a good example. The financial ascendant. Although some domestic companies have information of a company can be processed on the pioneered to try the new concept, there is still much Internet by XBRL and converted into a variety of room for progress. We believe integrated reporting formats, which will cater to the needs of accountants, will have a bright future. It will integrate CSR into analysts and investors. A similar tool may be developed a company’s resource management system and for sustainability reporting to standardize and format will revolutionize the current accounting system. the information so that the information can be easily Meanwhile, the development of integrated reporting fed into other databases and be used more widely and will be full of twists and turns, due to the huge number effectively. of rules to be modified and interests to be coordinated.
We predict sustainability reports will be electronized Nevertheless, it will be indispensable for integrated in three ways. Firstly, reports are put online for users to reporting to be introduced to China. We believe that download as PDF files. Secondly, reports are presented in the next one or two years, integrated reporting will chapter by chapter online as HTML hypertexts with bring about some discussions or disputes in a limited the full text available for download. Thirdly, reports field (probably among some professional practitioners) are released and saved in a standardized text form in China. We also expect a few integrated reports similar to XBRL. At present, most companies choose released by Chinese companies. We call for a tolerant to share their reports in the first form. In the future, we attitude to this trend. We should encourage domestic predict that the second way will be adopted by more institutions and companies to study the theoretical companies. As far as we know, the third form has not system and applications of integrated reporting, been tried by any company around the world. participate in international dialogues and win China a say in the new round of rule-making game. Another aspect of electronization is manifested in the compilation of sustainability report. Reporting companies will use more software or information collecting systems. Semi-auto report compilation is also possible. Some giant companies have started
35. XBRL (eXtensible Business Reporting Language) is a XML-based markup language for defining and exchanging business and financial information. The XBRL standards are defined and managed by XBRL International, a non-profit international organization comprised by over 300 members, such as institute of certified public ac- countants, banks, stock exchanges, IT companies and information suppliers. Some of its members include Deutsche Bank, Federal Deposit Insurance Corporation (FDIC), Fuji, Hitachi, GE, IBM, Microsoft, Morgan Stanley, PeopleSoft, PwC, Reuters, SAP, etc. 47 A Journey to Discover Values 2010
Appendix 1: The Chronicle of Sustainability Reporting Events in China
January, 2010, CSR Times Electric Co., Ltd. (HK3898), an affiliated company of CSR Zhuzhou Electric Locomotive Research Institute Co. Ltd., was approved by the United Nations as a member of United Nations Global Compact Organization, becoming the first Chinese company in rail transportation equipment industry to join the organization.
January, 2010, the quality supervision system claimed that they would perfect the credit assessment and information disclosure mechanism, implement the blacklist system to curb illegal corporation behaviors, punish fraudulent products and services, and promote the implementation of quality and safety responsibility.
January, 2010, Sinosteel released the Sinosteel Sustainability Australia Report both in Beijing and Perth of Australia at the same time, the first CSR report or sustainability report released by a Chinese company in a developed country.
January, 2010, Sun Xiaohua, the chairperson of All-China Federation of Industry and Commerce (ACFIC), when delivering a speech on the ceremony of commending the “Brothers of Credit”, announced that ACFIC would develop a CSR guide system for China’s private companies.
April, 2010, the State-owned Assts Supervision and Administration Commission (SASAC) hosted the CSR report training session for CGEs (central government enterprises), to which attended directors of CSR departments of the 63 CGEs that had not yet published CSR reports.
April, 2010, the Securities Association of China published the China Securities Investment Fund Corporate Social Responsibility Report Survey (2009) at the annual meeting of China Securities Investment Funds.
May, 2010, China Federation of Industrial Economics, together with 9 other organizations such as China National Coal Association and China Machinery Industry Association, released the CSR Guide for China Industrial Companies and Industrial Associations (2nd Edition).
May, 2010, in order to further regulate the information disclosure behaviors of the insurance companies, protect the lawful rights and benefits of policy holders, the insured and beneficiary, and promote the healthy and steady
48 A study of sustainability reporting in China growth of insurance industry, China Insurance Regulatory Commission (SIRC) released the Regulatory Measures for Information Disclosure by Insurance Companies, which was scheduled to take effect as of 12th June, 2010.
May, 2010, the first CSR report release ceremony was hosted by the Guizhou Commission of Economy and Information Technology and held by Guizhou Industry and Knowledge Economy Association in Guiyang. Nine companies, including Kweichou Moutai Distillery Co., Ltd. and Panjiang Group, released their CSR reports.
July, 2010, 11 Chinese NGOs, including Friend of Nature, Green Earth Volunteer, and Institute of Public & Environment Affairs, collectively published their open letter addressed to Shanghai Securities Exchange and Hong Kong Securities Exchange on the alleged Zijin Mining’s deliberate delay of information disclosure regarding a pollution incident, calling on the two Exchanges to perfect the system governing the listed companies’ information disclosure and to publicly punish the violation of Zijin Mining.
July, 2010, Shaanxi Province issued the CSR Guidebook for Shaanxi Industries to facilitate the sustainability reporting of local companies.
July, 2010, China Textile Industry Association released the China Sustainability Report for Apparel and Textile Enterprises 2010 (CSR-GATEs), the fourth industry CSR report released by the association in the last four consecutive years.
August, 2010, the State-owned Assets Supervision and Administration Commission (SASAC) released the SASAC 2009 Review, evaluating the corporate social responsibility performance of the CGEs (central-government enterprises) in 2009. The review stated that some central enterprises had strengthened the communication on CSR work, some had released CSR reports or sustainability reports and some had even released country reports.
September, 2010, in order to ensure the public access to environment information and urge listed companies to actively perform their social responsibility in protecting the environment, Ministry of Environmental Protection formulated the Guidelines for Environment Information Disclosure by Listed Companies and solicited public opinions.
September, 2010, at the press conference named Glory Career-Corporate Social Responsibility Performance, the first CSR performance report featuring the non-public-owned enterprises was released. The report covered 34 CSR reports compiled within non-public-owned enterprises.
November, 2010, the Insurance Association of China released the Annual CSR Report of the Insurance Industry (2010).
November, 2010, the International Organization of Standardization released its CSR reporting guidelines (ISO26000), which is the first global standard on CSR.
December, 2010, at the Third International Symposium on CSR Reporting in China, Pudong New Area released the Regional Responsible Competitiveness Report (2007-2010) of Pudong District, Shanghai, which is the first social responsibility report released by a local government.
49 A Journey to Discover Values 2010
Wuxi SHAPR Electronics Co., Ltd. Nanjing Hongbaoli Co., Ltd. Appendix 2: Wuxi Aikawa Teiron Electronics Co., Ltd. Nanjing Chemical Fiber Co., Ltd. Intel China Nantong Jiangshan Agrochemical & Chemicals Reporting Companies Zhejiang CHINT Electrics Co., Ltd. Co., Ltd. Dongfang Electric Corporation Ningxia Younglight Chemicals Co., Ltd. 2010 in China China Hualu Group Co., Ltd. Qinghai Salt Lake Potash Co., Ltd. Shandong Haihua Co., Ltd. Real Estate Sichuan Lutianhua Co., Ltd. Tangshan Sanyou Chemical Industries Co., Ltd. Power Poly Real Estate Group Co., Ltd. The Dow Chemical Company Beijing North Star Company Limited Hubei Biocause Pharmaceutical Co., Ltd. Beijing Jingneng Thermal Power Co., Ltd. Beijing Airport High-Tech Park Co., Ltd. Xinjiang Zhongtai Chemical Co., Ltd. Datang International Power Generation Co., Ltd. Beijing Vantone Real Estate Co., Ltd. Yantai WanHua Polyurethane Co., Ltd. Fujian MingDong Electric Power CO., Ltd. Oceanwide Real Estate Group Yunnan Yuntianhua Co., Ltd. Guangdong Baolihua New Energy Stock Co., Ltd. Guangxi Wuzhou Zhongheng Group Zhejiang Huafeng Spandex Co., Ltd. Guangdong Electric Power Development Co.,Ltd. Cosmos Group Zhejiang Longsheng Group China Southern Power Group Hangzhou Binjiang Real Estate Group Sinopec Shanghai Petrochemical Co., Ltd. Guangxi Guidong Electric Power Co., Ltd. Deluxe Family Co., Ltd. Sinopec Yizheng Chemical Fibre Co., Ltd. Guizhou Power Grid Huayuan Property Co., Ltd. Sinochem Group Guizhou Wujiang Hydropower Development Co., Ltd. Jilin Yatai (Group) Co., Ltd. Sinochem International Corporation GD Power Development Co., Ltd. Gemdale Corporation Sinofert Holdings Limited State Grid Fujian Electric Power Coporation Finance Street Holding Co., Ltd. State Grid Corporation of China Milord Real Estate Development Group Construction State Grid Zhejiang Electric Power Corporation Nanjing Chixia Development Co., Ltd. SDIC Huajing Power Holdings Co., Ltd. Shanghai AJ Corporation Anhui Xinke New Materials Co., Ltd. Hainan Power Grid Shanghai Prosolar Real Estate Co., Ltd. Beijing Urban Construction Investment and Devel- Huadian Power International Corporation Limited Shanghai Industrial Development Co.,Ltd. opment Co., Ltd. Huaneng Power International Inc. Shanghai Tianchen Co., Ltd. Oriental Yuhong Waterproof Technology Co., Ltd. Leshan Electric Power Co., Ltd. Shanghai Zhangjiang Hi-Tech Park Development Co., Changjiang and Jinggong Steel Building (Group) Co., Ltd. Inner Monglia Power (Group) Corporation Limited Ltd. Fujian Zhangzhou Development Co., Ltd. Electric Power of Shanxi Company Shenzhen Zhenye (Group) Co., Ltd. Guangdong Tapai Group Shanxi Top Energy Co., Ltd. Shenyang Ingenious Development Co., Ltd. Hongrun Construction Group Shanxi Xishan Coal and Electricity Power Co., Ltd. Tianjin Jinbin Development Co., Ltd. Jiangsu Expressway Co., Ltd. Suntech Power Holdings Co., Ltd. Tianjin Reality Development (Group) Co., Ltd. Shanghai Construction Co., Ltd. Shenergy Company Limited China Vanke Co., Ltd. Wolong Real Estate Group Shanghai Pudong Road & Bridge Construction Shenzhen Energy Group Co., Ltd. Co., Ltd. Wuxi Municipal Development Group Shenyang Jinshan Energy Co., Ltd. Shanghai CIMIC Tile Co., Ltd. Xinhu Zhongbao Co., Ltd. Sichuan Chuantou Energy Co., Ltd. Tangshan Jidong Cement Co., Ltd. Cinda Real Estate Co., Ltd. Sichuan Guangan Aaa Public Co., Ltd. China Gezhouba Group China Merchants Property Development Co., Ltd. Siemens Medium Voltage Switching Technologies Wuxi China National Building Material Group Corpora- Company Zhejiang Zhongda Group tion Xinjiang Goldwind Science and Technology Co., Ltd. China Baoan Group China State Construction Engrg. Corporation Yunan Power Grid Corporation China Wuyi Co., Ltd. China Communications Construction Co., Ltd. Yunnan Wenshan Electric Power Co., Ltd. COFCO Property (Group) Co., Ltd. China Railway Construction Co., Ltd. China Yangtze Power Co., Ltd. Zhuhai Huafa Industrial Co., Ltd. Sinoma International Engineering Co., Ltd. China Three Gorges Corporation China Railway Erju Co., Ltd. China Datang Corporation Textiles & Apparel China Power Engineering Consulting (Group) Corpora- tion High Fashion Silk (Zhejiang) Co., Ltd. Financial China Power Investment Corporation Advancetex Fashion Garment Manufactory (HuiZhou) Bank of Beijing Co., Ltd. China Guodian Corporation Changjiang Securities Fujian Fynex Textile Science & Technology Co., Ltd. China Huadian Corporation Northeast Securities Fujian Nanfang Textile Co., Ltd. China Huaneng Group Soochow Futures Fujian Septwolves Industry Co., Ltd. China Southern Power Grid Corporation Limited BEA China Fujian Zhonghe Co., Ltd. Chongqing Fuling Electric Power Industrial Co., Ltd. Fullgoal Fund Management Co., Ltd. Black Peony (Group) Co., Ltd. Chongqing Three Gorges Water Conservancy and Everbright Futures Electric Power Co., Ltd. Huafu Top Dyed Melange Yarn Co., Ltd. Everbright Securities Zhuzhou Times Electric Technology Co., Ltd.. Jiangsu Danmao Textile Co., Ltd. State Development & Investment Corporation ShangHai Electric Group Jiangsu Wujiang China Eastern Silk Market Co., Ltd. (SDIC) Jingwei Textile Machinery Co., Ltd. Guotai Asset Management Co., Ltd. Telecommunications Luthai Textile Co., Ltd. GuoYuan Securities Ningbo Shanshan Co., Ltd. HFT Investment Management Co., Ltd. Huawei Technologies Co., Ltd. HTT Material Technology Co., Ltd. Haitong Futures Alcatel-Lucent Shandong JOFO Nonwoven Co., Ltd. Haitong Securities China Telecom Sichuan Branch Shanghai Metersbonwe Fashion and Accessories Co., Hicend Futures China United Network Communications Group Co., Ltd. Ltd. Bank of Hangzhou China Unicom Henan Branch Tianjin Teda Co., Ltd. Bank of Hebei China Unicom Heze Branch Wuxi Natural Textile Industrial Co., Ltd. Hong Yuan Securities China Railway Signal & Communication Corporation Far Eastern Industries（Wuxi）Co., Ltd. Hubei Rural Credit Cooperatives Union China Mobile Communications Corporation Zhejiang Mengna Knitting Co., Ltd. Hua An Funds China Mobile Group Shanghai Company limited Zhejiang Tiansheng Holding Group Huawen Futures Brokerage Co., Ltd. China Mobile Group Zhejiang Company Limited Chinatex Corporation Hua Xia Bank China Mobile Limited China Fortune Futures Chemicals China Universal Asset Management Co., Ltd. Electronic Manufacturing Anhui Wantong Technology Co., Ltd. Jiangxi Rural Credit Union Epson Toyocom (Wuxi) Co., Ltd. BASF Greater China Bank of Communications Beijing Electronic Zone Investment and Development East China Engineering Science and Technology Co., Jinzhong City Commerical Bank Co., Ltd.&Beijing C&W Technology Co., Ltd. Ltd. Bank of Nanjing Dalian Zhengshui Environmental Engineering Co., Ltd. Fujian Sannong Group Bank of Ningbo Toshiba Semiconductor (Wuxi) Co., Ltd. Fuji Film Fine Chemical Co., Ltd. Bank of Ningxia Toshiba Dalian Co., Ltd. Searainbow Holding Corporation Qianxi County Rural Credit Cooperative Fujian Furi Electronics Co., Ltd. Hubei Shuanghuan Science and Technology Stock Co., Rural Credit Cooperative of Shandong Hynix-Numonyx Semiconductor Co., Ltd. Ltd. Shanxi International Trust Co., Ltd. Canon Dalian Business Machines Inc. Hubei Yihua Chemical Industry Co., Ltd. Shanghai Dalu Futures Ls Cable (Wuxi) Co., Ltd. Hualan Biological Engineering Inc. Orient Securities Futures Nanjing Huadong Electronics Information & Technology China Resources Sanjiu Medical & Pharmaceutical Jin Yuan Futures Co., Ltd. Co., Ltd. Shanghai Jiuheng Futures Brokerage Co., Ltd. Nanjing Sharp Electronics Corporation Jiangsu Yangnong Chemical Co., Ltd. Shanghai Liangmao Futures Brokerage Co., Ltd. Nanjing Panda Electronics Company Limited Lanxess (Wuxi) Chemical Co., Ltd. Shanghai Rural Commercial Bank Shanghai Belling Co., Ltd. Liaoning Huajin Tongda Chemicals Co., Ltd. Shanghai Pudong Development Bank Liuzhou Chemical Industry Co., Ltd.
50 A study of sustainability reporting in China
Shanghai Shenhua Holdings Co., Ltd. Harbin Pharm. Group Sanjing Pharmaceutical Co., Ltd. Shandong Sinocera Functional Material Co., Ltd. Shanghai Zheshi Futures Mary Kay (China) Cosmetics Co., Ltd. Shandong Huatai Paper Co., Ltd. Shanghai Z.C. Futures ShangHai JinFeng Wine Co., Ltd. Shandong Nanshan Aluminium Corporation Shanghai CIFCO Futures Shanghai Yimin Commercial Co., Ltd. ShanDong Tianfeng Solar Products Co., Ltd. Shenyin & Wanguo Futures Suning Appliance Co., Ltd. ShanDong Zhongkai Wind Power Equipment Manufac- Shenzhen Development Bank Xi’An Kaiyuan Holding Group turing Co., Ltd. Shenzhen Overseas Chinese Town Co., Ltd. Xi’An Minsheng Group Shantui Construction Machinery Co., Ltd. SichuanRural Credit Union Xiamen ITG Group Shanghai Diesel Engine Co., Ltd. Bank of Taizhou Xiamen C & D Inc. Shanghai Volksvagen Co., Ltd. Tianjin Rural Commercial Bank Yinzuo Group Shanghai Highly (Group) Co., Ltd. Wuxi Guolian Development Group Zhejiang China Commodities City Group Shanghai Aerospace Automobile Electromechanical Wuxi Communications Industry Group China Medicine and Health Products Co., Ltd. Co., Ltd. Wuxi Municipal Public Industry Group Shanghai Mechanical And Electrical Industry Co., Ltd. Shanghai Jielong Industry Group South-west Securities Other Manufacturing Xinjiang Rural Credit Cooperative SAIC Motor Corporation AEGON-INDUSTRIAL Fund Management Co., Ltd. STX (Dalian) Precision Engineering Co., Ltd. Shanghai Zhixin Electric Co., Ltd. Industrial Bank Aier Eye Hospital Group Shanghai Zijiang Enterprise Group Wing Hang Bank Anhui Conch Cement Co., Ltd. Changyuan Group Zhanjiang Commercial Bank Anhui Heli Co., Ltd. Han’s Laser Technology Co., Ltd. China Merchants Bank Anhui Quanchai Engine Co., Ltd. Shenzhen Fiyta Holdings Ltd. China Merchants Securities Advanced Technology and Materials Co., Ltd. Shenzhen Green Eco-manufacture Hi-tech Co., Ltd. Zhejiang Changxing Rural Cooperative Bank Ansc-Tks Galvanizing Co., Ltd. Shenzhen Clou Electronics Co., Ltd. Zhejiang Deqing Rural Cooperative Bank Procter and Gamble Chinascholars Group Zhejiang Nnanxun Rural Cooperative Bank Beijing AriTime Intelligent Control Co., Ltd. Shenji Group Kunming Machine Tool Co., Ltd. Zhejiang Tailong Commercial Bank Beijing Double-Crane Pharmaceutical Co., Ltd. Shenyang Blower Works Group CGOG Futures Beijing Toread Outdoor Products Co., Ltd. Shengli Qilfield Longxi Petroleum Steel Tube Co., Ltd. Industrial and Commercial Bank of China Beijing Wandong Medical Equipment Co., Ltd. SiChuan ChangHong Electric C0., Ltd. China Everbright Bank BGRIMM Magnetic Materials and Technology Co., Ltd. Sony China China Construction Bank Beiqi Foton Motor Co., Ltd. TBEA Co., Ltd. China Minsheng Banking BSW Household Appliances Co., Ltd. Tiandi Science & Technology Co., Ltd. Agricultural Bank of China Changsha Zoomlion Heavy Industry Science And Tech- Tianjin Benefo Tejing Electric Co., Ltd. Ping An Insurance nology Development Co., Ltd. TDG Holding Co., Ltd. China Life Insurance DaLian Iris Group Baoding Tianwei Baobian Electric Co., Ltd. China Pacific Insurance PDA Corporation General Electric China Bank of China Dalian Rengo Packaging Co., Ltd. Mabuchi Motor Dalian Ltd. China Cifco Investment Co., Ltd. Dalian Xiaoyetian Cement Co., Ltd. Weichai Power China Cifco Investment Co., Ltd. Dongfang Electric Co., Ltd. Wolong Electric Group CITIC Newedge Futures Co., Ltd. Dongfeng Automobile Co., Ltd. Wuxi Baotong Belt Co., Ltd. China Citic Bank Toshiba China Wuxi Humanetics Precision Metal Fabrication Ltd. Citic Securities Fangda Special Steel Technology Co., Ltd. Wuxi Mighty Power Machinery Co., Ltd. Bank of Chongqing Aeolus Tyre Co., Ltd. Wuxi Mobis Automotive Parts Co., Ltd. Phenix Optical Co., Ltd. Weifu High-Technology Co., Ltd. Foshan Electrical and Lighting Co., Ltd. Weifu High-Technology Co., Ltd. Tourism and Entertainment Fujian Guanfu Modern Household Wares Co., Ltd. Wuxi Little Swan Co., Ltd. China Travel Service (HK) Group Corporation Fujian Hongbo Printing Co., Ltd. AVIC Xi’an Aircraft Industry (Group) Co., Ltd. China CYTS Tours Holding Co., Ltd. Fujian Longking Co., Ltd. Xiamen Tungsten Co., Ltd. Fujian Longxi Bearing (Group) Co., Ltd. Hyundai Motor Company Coal & Mining Fujian Nanping Sun Cable Co., Ltd. XJ Electric Co., Ltd. Fujian Yongan Forestry (Group) Joint-Stock Co., Ltd. FAW Car Co., Ltd. Datong Coal Mine Group Fujian Cement Inc. Wuxi Star Joy Automotive Interior Decoration Co., Ltd. Jizhong Energy Resources Co., Ltd. Fujian SBS Ziper Science & Technology Co., Ltd. Grinm Semiconductor Materials Co., Ltd. Inner Mongolia Huolinhe Opencut Coal Industry Corpo- FuYao Glass Industry Group Yuchai Group ration Citychamp Dartong Co., Ltd. Zhejiang Dongri Limited Company Inner Mongolia Yitai Coal Co., Ltd. Keda Industrial Co., Ltd. Zhejiang Feida Environmental Science & Technology Qinghai Sunshiny Mining Co., Ltd. Guangdong Midea Electric Appliances Co., Ltd. Co., Ltd. Jincheng Anthracite Mining Group Guangdong Shengyi Sci.Tech Co., Ltd. Zhejiang Hangmin Co., Ltd. Shanxi Lanhua Sci-Tech Venture Co., Ltd. Guangxi Liugong Machinery Co., Ltd. Zhejiang Sanlux Rubber Co., Ltd. Shanxi Lu’an Environmental Energy Development Co., Guangzhou Shipyard International Co., Ltd. Zhejiang Sunyard Wood Co., Ltd. Ltd. Seagull Group Zhejiang Tianma Bearing Co., Ltd. Shanxi Yitang Coal Industry Co., Ltd. Guizhou Wire Rope Co., Ltd. Zhejiang Weixing Industrial Development Co., Ltd. Shanghai Datun Energy Resourses Co., Ltd. Guizhou Redstar Developing Co., Ltd. Zhejiang Xinan Chemical Industrial Group Taiyuan Coal Gasification Co., Ltd. Guilin Guanglu Measuring Instrument Co., Ltd. Zhejiang Yankon Group Yanzhou Coal Mining Co., Ltd. Haier Group China National Materials Co., Ltd. China National Administration of Coal Geology Hangzhou Steam Turbine Co., Ltd. CNR Dalian Locomotive & Rolling Stock Co., Ltd. China Coal Energy Co., Ltd. Hangzhou Silan Microelectronics Co., Ltd. China North Industries Group Corporation China National Coal Group China Aerospace Times Electronics Co., Ltd. China Fiberglass Co., Ltd. Hefei Rongshida Sanyo Electric Co., Ltd. China State Shipbuilding Corporation Other Mining Henan Rebecca Hair Products Co., Ltd. China National Erzhong Group China FAW Group Corporation Western Mining Co., Ltd. Henan Yuguang Gold & Lead Co., Ltd. China First Heavy Industries Eaton China Henan Zhongfu Industry Co., Ltd. Hubei Kaile Science and Technology Co., Ltd. China Spacesat Co., Ltd. Hunan Sunward Intelligent Machinery Co., Ltd. China Aviation Supplies Holding Company Agriculture JiLin Sino-Microelectronics Co., Ltd. China Aerospace Science & Industry Corp. Anhui BBCA Biochemical Co., Ltd. Jinxi Axle Co., Ltd. Panasonic China Gifore Agricultural Machinery Chain Co., Ltd. Liaoning SG Automotive Group China National Machinery Industry Corporation Guilin Layn Natural Ingredients Corporation Resgreen Group CSG Holding Co., Ltd. Shandong Homey Aquatic Development Co., Ltd. China Luoyang Float Glass Group China-Kinwa High Technology Co., Ltd. Sichuan New Hope Agribusiness Co, Ltd. Susino Umbrella Co., Ltd. China Animal Husbandry Industry Co., Ltd. WanXiang Doneed Co., Ltd. Markor International Furniture Co., Ltd. Zhongshan Broad-Ocean Motor Co., Ltd. Wuxi Zhengda Poultry Co., Ltd. Mindong Electric (Group) Co., Ltd. Zhongshan Vantage Gas Appliance Stock Co., Ltd. Xingjiang Chalkis Co., Ltd. Inner Mongolia North Hauler Joint Stock Co., Ltd. ZTE Corporation Yantai Changyu Pioneer Wine Co., Ltd. Nikon Imaging (China) Co., Ltd. Chongqing Changan Automobile Co., Ltd. China Oil & Foodstuffs Corporation L’Oréal China Zhuzhou Times New Materials Technology Co., Ltd. Fujian Sunner Development Co., Ltd. PUNCH Industry (Dalian) Co., Ltd. Zhuhai Gree Electric Appliances, Inc. Bridgestone (Wuxi) Tire Co., Ltd. Zhudian Powder Metallurgy Wuxi Co., Ltd. Wanxiang Group Wholesale & Retail Qingdao Haier Co., Ltd. Hisense Electric Co., Ltd. Wuxi Industry Development Group Fujian Dongbai Group QingHai HuaDing Industrial Co., Ltd. Aviation Industry Corporation of China Highsun Group Hitachi China China National Medicines Corporation Sany Heavy Industry Co., Ltd.
51 A Journey to Discover Values 2010
Human Resources Ufida Software Co., Ltd. Dazhong Transportation (Group) Co., Ltd. Insigma Technology Co., Ltd. Fujian Expressway Development Co., Ltd. China Talent Group Hexin Flush Information Network Co., Ltd. Guangshen Railway Co., Ltd. Jonjee Hi-tech Industrial & Commercial Holding Co., Guangzhou Baiyun International Airport Co., Ltd. Oil & Gas Ltd. Offshore Oil Engineering Co., Ltd. CITIC Guoan Information Industry Co., Ltd. Henan Zhongyuan Expressway Co., Ltd. Dalian West Pacific Petrochemical Co., Ltd. Jiangsu Lianyungang Port Co., Ltd. Shell China Smelting Jiangxi Changyun Co., Ltd. Yueyang Xingchang Petro-chemical Co., Ltd. Jiangxi Ganyue Expressway Co., Ltd. CNOOC Anyang Iron & Steel Inc. Ningbo Marine Co., Ltd. China National Offshore Oil Corp. Angang Steel Co., Ltd. Rizhao Port Co., Ltd. China Petroleum & Chemical Corporation Anshan Iron and Steel Group Corporation Shanghai International Port (Group) Co., Ltd. China Petrochemical Corporatioin Baosteel Group Shenzhen Bus Group Petro China Company Limited Baoji Titanium Industry Co., Ltd. Shenzhen Expressway Co., Ltd. CNPC Dalian Branch Baoshan Iron & Steel Co., Ltd. Shenzhen Airport Co., Ltd. China National Petroleum Corporation Beijing Shougang Co., Ltd. Shenzhen Yan Tian Port Holdings Co., Ltd. China National Petroleum Corporation Fujian Sansteel Minguang Co., Ltd. Tianjin Port Co., Ltd. China Oilfield Services Limited SGIS Songshan Co., Ltd. Xi’an Aero-Engine Plc Hebei Iron and Steel Co., Ltd. Xiandai Investment Co., Ltd. Chenzhou Mining Group Food & Beverages Yingkou Port Liability Co., Ltd. Hunan Valin Steel Co., Ltd. China Merchants Group Beijing Yanjing Brewery Co., Ltd. Jilin Ji En Nickel Industry Co., Ltd. China Merchants Energy Shipping Co., Ltd. Fujian Yanjing Huiquan Beer Group Jinan Iron and Steel Co., Ltd. Zhengzhou Yutong Bus Co., Ltd. Bright Dairy and Food Co., Ltd. Jiangxi Copper Co., Ltd. Zhongchu Development Stock Co., Ltd. Guangzhou Zhujiang Brewery Group Jiaozuo Wanfang Aluminum Manufacturing Co., Ltd. China CNR CO., Ltd. Kweichow Moutai Co., Ltd. Powder Metallurgy Co., Ltd. Nanjing Tanker Corporation Sdic Zhonglu Fruit Juice Co., Ltd. Kailuan Energy Chemical Co., Ltd. China Grain Reserves Corporation Henan Shuanghui Investment & Development Co., Ltd. Laigang Group China Shipbuilding Industry Co., Ltd. Coca-Cola Beverage China Maanshan Iron and Steel Co., Ltd. China Eastern Air Holding Company Luzhou Lao Jiao Co., Ltd. Alcoa Investment Co., Ltd. China International Marine Containers (Group) Ltd. Tsingtao Brewery Co., Ltd. Inner Mongolia Baotou Steel Rare-earth (Group) Hi-tech Shan Dong Dong-E E-Jiao Co., Ltd. Co., Ltd. Air China Limited Shanxi Xinghua Cun Fen Chiew (Group) Co., Ltd. Nanjing Iron & Steel Co., Ltd. China TravelSky Holding Company Shenzhen Agricultural Products Co., Ltd. Ningxia Orient Tantalum Industry Co., Ltd. China South Locomotive & Rolling Stock Corporation Limited Sichuan Tuopai Yeast Liquor Co., Ltd. Pangang Group Panzhihua Steel & Vanadium Co., Ltd. China Southern Airlines Co., Ltd. Shanxi Good and Good Co., Ltd. Shandong Jinling Mining Industry Liability Company SINOTRANS & CSC Infinitus China Shanxi Guanlu Co., Ltd. China COSCO Holdings Co., Ltd. Xinjiang Guannong Fruit and Antler (Group) Co., Ltd. Shanxi Taigang Stainless Steel Co., Ltd. China Ocean Shipping (Group) Company New Era Health Industry (Group )Co., Ltd. Shenzhen Zhongjin Lingnan Nonfemet Co., Ltd. China Shipping Haisheng Co., Ltd. Wuliangye Group Tongling Nonferrous Metals Group China Shipping Development Co., Ltd. Zhejiang Guyuelongshan Shaoxing Wine Co., Ltd. Minmetals Development Co., Ltd. China Shipping Container Lines Co., Ltd. Zhengzhou Sanquan Foods Co., Ltd. Wuhan Iron and Steel (Group) Corp. China Railway Tielong Container Logistics Co., Ltd. Wuhan Iron and Steel Co., Ltd. Sinotrans Air Transportation Development Co., Ltd. Xining Special Steel Co., Ltd. Water Utilitties COSCO Shipping Co., Ltd. Xinxing Ductile Iron Pipes Co., Ltd. Nanhai Development Co., Ltd. Yunnan Chihong Zinc & Germanium Co., Ltd. Shanghai Chengtou Holding Co., Ltd. Yunnan Aluminium Co., Ltd. Paper & Printing Tianjin Capital Environmental Protection Co., Ltd. Yunnan Copper Co., Ltd. Beiren Printing Machinery Holdings Limited China Gezhouba Group Corporation Yunnan Tin Co., Ltd. Fujian Nanping Paper Co., Ltd. Zhejiang Hailiang Co., Ltd. Fujian Qingshan Paper Industry Co., Ltd. Education Aluminum Corporation of China Limited Shandong Chenming Paper Holdings Limited Aluminum Corporation of China Limited Huawen Media Investment Corporation Shandong Sun Paper Industry Joint Stock Co., Ltd. China Minmetetals Corporation Jiangxi Society for Promotion of the Guangcai Program MCC Meili Paper Industry Co., Ltd. China Metallurgical Group Corporation Time Publishing and Media Co., Ltd. Sinosteel Corporation Hotel & Catering Chongqing Iron & Steel Co., Ltd. IT Zijin Mining Group Jinling Hotel Corporation, Ltd. TCL Group Inc. Jinduicheng Molybdenum Group Wuxi Juna Hotels Group Alibaba.Com Limited Wuxi Zoyi International Business Hotel EPCOS Technology Wuxi Co., Ltd. Pharmaceutical China Beverage Industry Association Anhui Ustc Iflytek Co., Ltd. AstraZeneca Pharmaceuticals Co., Ltd. Beijing Beilu Pharmaceutical Co., Ltd. Other Transport & Logistics Beijing Tiantan Biological Products Corporation Limited Anhui Jianghuai Automobile Co., Ltd. Anhui Expressway Co., Ltd. Beijing Tongrentang Co., Ltd. Shandong Bohui Paper Industrial Co., Ltd. Baosheng Science and Technology Innovation Co., Ltd. DSM China Fujian Sanmu Group Beijing Gehua CATV Network Co., Ltd. Guangzhou Baiyunshan Pharmaceutical Co., Ltd. Fosun International Limited Beijing Shiji Information Technology Co., Ltd. Guangzhou Pharmaceutical Co., Ltd. Guangzhou Department Store Enterprise Group Neusoft Corporation Hubei Guangji Pharmaceutical Co., Ltd. Guangzhou Development Industry (Holdings) Co., Ltd. Founder Technology Group Corp. Pfizer China Henan Shenhuo Coal and Power Co., Ltd. Fiberhome Telecommunication Technologies Co., Ltd. Jiangsu Nhwa Phermaceutical Co., Ltd. China Resources Holdings Co., Ltd. CASTECH Inc. Jiangsu Kanion Pharmaceutical Co., Ltd. JiLin AoDong Medicine Industry Group Fujian Start Group Jiangzhong Medical Co., Ltd. Road & Bridge Group International Building Ltd. Fujian Newland Computer Co., Ltd. Lepu Medical Technology (Beijing) Co., Ltd. Ningbo United Group Guomai Technologies, Inc. Mayinglong Pharmaceutical Group Shandong Expressway Co., Ltd. Aisino Co., Ltd. Shanghai Fosun Pharmaceutical (Group) Co., Ltd. Shanxi Changping Group Hengdian Group DMEGC Magnetics Co., Ltd. Shanghai Kehua Bioengineering Co., Ltd. Shanghai DaZhong Public Utilities (Group) Co., Ltd. Hunan TvandBroadcast Intermediary Co., Ltd. Shanghai Pharmaceuticals Holding Co., Ltd. Sichuan Changhong Electric Co., Ltd. Leaguer Stock Co., Ltd. Shenzhen Tongren Gynecology Hospital Youngor Group Lenovo Group Limited Shenzhen Accord Pharmaceutical Co., Ltd. Sunshine City Group Lenovo Group Limited Tianjin Tasly Pharmaceutical Co., Ltd. Far East Holding Group Nanjing Xingang High-tech Co., Ltd. Tianjin Tianyao Pharmaceutical Co., Ltd. China Dalian International Cooperation (Group) Hold- Shanghai Baosight Software Co., Ltd. Tibet Cheezheng Tibetan Medicine Co., Ltd. ings Ltd. Sichuan Expressway Co., Ltd. Yabao Pharmaceutical Group China Shenhua Energy Co., Ltd. Suzhou New District Hi-Tech Industrial Co., Ltd. Yunnan Baiyao Group China Nonferrous Metal Industry’s Foreign Engineering Tiancheng Co., Ltd.of Taiyuan University of Technology Yunnan Baiyao Wuxi Group and Construction Co., Ltd. Taobao.com Zhangzhou Pientzehuang Pharmaceutical Co., Ltd. China Railway Group Tsinghua Tongfang Co., Ltd. Zhejiang Hisun Pharmaceutical Co., Ltd. China Sports Industry Group Microsoft Zhejiang NHU Co., Ltd. Ctrip.com International Ltd. Anhui Expressway Co., Ltd. Daqin Railway Co., Ltd.
52 A study of sustainability reporting in China
Interviewees List and Acknowledgements
In the process of our research, we have been fortunate to count with the support of experts, scholars, field workers and many other people from different organizations and enterprises, whose professional suggestions and expertise are irreplaceable to our report. They deserve our hearty thanks!
Center for Innovation and Social Responsibility, Tsinghua University Deng Guosheng China NGO Network for International Exchanges Huang Haoming CSR Office of China Textile Industry Association Hu Kehua, Zhang Xu International Finance Corporation (IFC) Yuan Wei Lenovo Group Fu Lin Oxfam Hong Kong Wang Xuan, Cai Rui Research Center for Corporate Social Responsibility of CASS Sun Xiaowen Research Institute of Economics and Technology of CNPC Li Wen Sohu Green Channel Shi Shaochen Southern Weekly Cao Haidong State Grid Ding Shaozhong, Ding Shaozhong University of International Business and Economics Li Li
(The organizations above are listed in alphabetical order)
At the same time, we would like to express our thanks to Shen Xin, a SynTao staff member, Aurélia Britsch, an intern, Du Yaning, a doctor with Andrews University, who have prepared the materials and documents, and Wang Xin, Chen Xiaoyan, Tan Xiaodong and Lv Xiujuan who provided us with invaluable suggestions and criticism.
53 An Exploration of Integrated Reporting
A Journey 2010 to Discover Values
A Study of Sustainability Reporting in China
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