Sustainability Reporting Performance of the FTSE 100 | 2016 Results

Source: Carbon-Clear, 29 September 2016

The Sustainability Reporting Performance of the FTSE 100 is an annual research report that has been published for the past six years.  Companies use it, alongside CDP and Dow Jones Sustainability Index, as a benchmark for how well they are publicly reporting. The report examines best practice carbon reporting processes and procedures of FTSE 100 companies. Carbon Clear’s primary aim is to understand the extent and quality of carbon management and sustainability reporting among the top 100 UK listed companies.

In order to identify and promote best practice, all companies were scored in five broad subject areas – measurement, reporting and verification, strategy, carbon reduction, engagement and innovation. The data was collected from FTSE 100 companies’ sustainability reports, annual reports or websites (all publicly available information) during summer 2016.

The report’s aims are:

  • To celebrate best practice leaders and showcase their achievements and innovations
  • To drive best practice in carbon management and sustainability and allow companies outside the FTSE to gain inspiration and ideas for their own plans.

All the results and key findings from 2016 can be found below.

2016 Results

2016 Ranking Change Company Score
1 = BT Group 89%
2 = Marks & Spencer Group 88%
3 Unilever 86%
4 Coca-Cola HBC AG 83%
= 5 Kingfisher 81%
= 5 Sky 81%
7 Aviva 78%
8 Mondi 76%
9 RELX Group 73%
= 10 Centrica 70%
= 10 Diageo 70%
= 10 Reckitt Benckiser Group 70%

2016 Key Findings

Renewable energy is playing a key role in business sustainability

  • 48 purchase green electricity
  • 10 have committed to RE100

Supply chain reporting and engagement is improving, but there is still work to do

  • 66 report Scope 3 data, 10 more than 2015
  • 47 report Scope 3 beyond business travel, 7 more than 2015

The adoption of science based targets (SBT) is increasing

  • 6 companies set science based targets (1 in 2015).
  • 6 further companies have committed to setting science based targets in the future

Climate change risk assessments lead to action

  • 66 companies show an assessment of materiality of climate change issues, or an assessment of the risks climate change poses to their business

Industry Sector Performance

As reduction of emissions is the ultimate goal, the lessons that can be learnt from the leading sectors are important, as are the mistakes made by those sectors lagging behind. Whilst some industries may be inherently carbon intensive, that shouldn’t stop reductions being made.

Key Findings

  • This year’s analysis shows that supermarkets are the best performing sector with 59%. That being said, the average score is down, from 74% last year.
  • Engineering and machinery are the worst performing sector with an average score of 26%, down from 34% in 2015.

FTSE 100 vs IBEX 35

For the first time this year we have compared the FTSE 100 with the Spanish IBEX 35 index. Overall, the IBEX 35 has demonstrated a stronger performance in sustainability reporting.

Key Findings

  • 23% of the IBEX 35 scored below 40%, compared to 42% of the FTSE 100.
  • The lowest score in the FTSE 100 is 3%, the highest 89%. For the IBEX 35 the lowest is 12%, the highest 73%.
  • The top scoring companies are from the FTSE 100. While 6% of FTSE 100 scored over 80%, no companies from the IBEX 35 scored as high.

Download the report (on request)