SDG Commitment Report 100: Tracking companies efforts to ...

1 SDG Commitment Report 100: Tracking companies ' efforts to contribute to the Sustainable Development Goals 82% of 100 analyzed blue chips disclosed their Commitment to the SDG in their 2016 annual reports. Volvo wins; Novartis second, Sainsbury ranks third. Aetna, AT&T. and Apple are low performers. Finding solutions for Climate Change, gender Equality, and Reduced Inequality are the top SDG. priorities for corporations Analysts categorized for this Report : 100 blue chip companies with a combined market cap of $ trillion USD;. 286,869 statements in annual reports issued by leading corporations;. Roland Schatz 1,843,410 reports in international business print media;. +41-79-2553636 1,149,782 quoted financial analyst statements in international business print media AwarenessMetrics The UNGSII Rankings and Indices provide data to understand and move the markets UNGSII. The problem so far: Only 30-60% of a company's full value is disclosed in its annual Report .

2 A consistent framework for global investors remains missing as reliable non-financial performance indicators have seemed impossible. According to Professor Bob Eccles of Harvard Business School & PWC "The Value Reporting Revolution," One Report .". This has lead to poor investment decisions that repeatedly result in financial crises. The 2008 crash caused a major trust meltdown due to poor governance and lack of standards. Without providing facts and metrics, corporate actions do not receive trust. The solution: In Sept. 2015 all Heads of State at the UN in New York signed the SDGs on behalf of all stakeholders, including public and private companies . In Feb. 2016 UNGSII was founded by experts representing all stake- holders to provide transparency by creating rankings and indices. More background see page 31. All research published at Purpose of UNGSII Rankings: UNGSII. Creating unique transparency on the SDG-related disclosed Commitment of the top 100 companies Creating Supporting transparency Enhancing the Helping Supporting visibility and for investors, relevance of businesses to informed understanding customers, corporate manage their decisions of the SDGs and reporting reputation civil society 3.

3 UNGSII: Company selection criteria UNGSII. By September 2017, the SDG Commitment Report will look at the top 100 of the largest companies on each continent. In order to select the first 100 companies for this preliminary Report released April 19 2017 in New York, the following factors were considered. -The most profitable 50 global companies in 2015. Those with available 2016 annual reports issued by March 31, 2017 are included in this Report . -The largest companies by revenue on each continent (The Americas, Europe, africa , and Asia-Pacific) were also selected. -The largest family owned companies (50% held by family for private companies ; 32% held by family for public companies ). -Presence on Fortune's Most Admired companies list Corporate disclosure vs. assessment by stakeholders UNGSII. Self Declaration Business Media Analysts Performance Analysis of annual Analysis of business Analysis of analyst Stock prices reports media quotations in key Bond prices Direct/indirect references Direct/indirect references financial publications Sales to the Sustainable to the SDGs (WSJ, FT, etc).

4 Net Promotor Score . Development Goals Journalists/other Perception of financial Employer rankings stakeholders vs. analysts and non-financial value drivers and more 5. (1) Findings from SDG analysis of annual reports UNGSII. 6. In their Annual Report 2016 over 80% of the companies recognize importance of the SDGs UNGSII. ESG = Environment, Sustianability &. Governance In the first annual reports after ratification of the SDGs, companies with a combined market cap of $ trillion recognized the importance of providing data on sustainability. One fac- tor: The increased interest from financial analysts on ESG-topics from 6% (2000) to 16% (2017)..7. 100% of analyzed UK companies show Commitment to the SDGs while US lags behind UNGSII. North America Europe 3%. 9%. 34%. "While a global sustainability 50% 47%. Index may be only one small 57% element of many to meet this challenge, it is an essential one because it helps to structure the investment UK flows of the future.

5 " -Dr. Asia Joachim Faber, Chairman, 22%. German Stock Exchange, 14%. Frankfurt 78%. 86%. European companies also performed exceptionally, with 97% demonstrating Commitment to the SDGs. Only 66% of North American companies analyzed demonstrated Commitment to the SDGs through either explicit statements about the goals or implicit actions that support them..8. companies disclose their SDGs Commitment at varying levels UNGSII. Volvo BT. Novartis Otto Sainsbury Aviva VW Henkel Roche Arcelormittal BHP Billiton Whirlpool Metro Compass Group WPP London Stock Exchange Deutsche Telekom ABInbev Glaxosmithkline BMW. Marubeni Bidvest BASF Sinopec Japan Post Lloyds Banking Hitachi Royal Bank Of Scotland SAP Pepsico Panasonic Deutsche Bank Sasol Wells Fargo Glencore companies Standard Life companies ranked 1 25 on Nestle ranked 26 - 50. Royal Dutch Shell Verizon SDG visibility L'Oreal on SDG visibility Barclays Vodacom Eskom Tesco HSBC.

6 Philips Bayer Telefonica Deutsche Post 0 100 200 300 400 0 20 40 60 80 100 120. Number of statements on the SDG Number of statements on the SDG. companies with over 100 statements in their annual reports related to the SDGs were broad communicators that provided significant information to stakeholders. Those with lower visibility have built a positive foundation..9. Others are just beginning to communicate on their SDGs Commitment UNGSII. Sanofi Blackstone HP Trafigura Group Deutsche B rse Cargill Johnson & Johnson Bank Of America Allianz AIG. Coca Cola Monsanto AXA Becton Dickinson Starbucks Walmart Daimler Walgreens Cisco Tyson Foods Ford Motor Sysco Publix Pfizer Accenture companies companies Peugot Generali ranked 51 75 National Australia Bank ranked 76 100. Freddie Mac on SDG visibility MTN Group on SDG visibility Fannie Mae Humana United Technologies General Electric Fedex Disney "ISO will support this relevant Best Buy Costco Nike Comcast Index.

7 ". Microsoft Boeing Robert Steele, former General McKesson Berkshire Hathaway Google AT&T Director International Standard Amerisourcebergen Apple Organization, ISO, Geneva Cardinal Health Aetna 0 10 20 30 0 1 2 3 4. Number of statements on the SDG Number of statements on the SDG. Just because a company is not yet communicating on the SDGs, doesn t mean they aren t focused on sustainability. Rather, they may be leaving positive image opportunities on the table by not communicating on their Commitment to the Goals..10. Select group of high-achieving companies explicitly disclose their SDG Commitment UNGSII. Roche Deutsche Telekom BASF. Henkel Volvo Novartis Daimler Philips Deutsche Telekom is able to Bayer ABInbev provide innovative products as Compass Group we invest in a sustainable Johnson & Johnson Nestle environment for our customers Sainsbury and employees.. Tesco Dr. Christian von Reventlow, SAP.

8 Royal Dutch Shell Member of the Board, Deutsche L'Oreal Telekom BMW. Vodacom Glencore Deutsche Bank Becton Dickinson Aviva 0 20 40 60 80 100 120 140. Number of statements that explicitly mention the SDG. Currently, fewer than 25% of companies explicitly reference the SDGs (a much higher percentage address the goals without naming them). The companies that do represent some of the most effective communicators on ESG issues, highlighting their interest to Communication on SDGs is enhanced by statements from C-level executives UNGSII. Pepsico Wells Fargo Eskom Royal Dutch Shell Johnson & Johnson Tesco BASF. Publix BHP Billiton "UNCTAD estimates global Vodacom investment needs for Accenture Sinopec realization of the SDGs on the Verizon order of $5 trillion to $7. United Technologies Otto trillion per year. Estimates Nestle Ford for developing countries Deutsche Telekom alone range from $ trillion McKesson L'Oreal to $ trillion per year.

9 " - Fedex James Zhan, Director, ABInbev Nike UNCTAD, Geneva Amerisourcebergen Best Buy 0% 2% 4% 6% 8% 10% 12% 14% 16%. Share of statements from C-level on the SDG. 64% of companies included statements related to the SDGs in C-suite letters to shareholders in their annual reports, emphasizing the importance of the Goals. The top 25 companies (above) offered a detailed overview..12. 86% of the largest companies demonstrate Commitment to the SDGs UNGSII. Largest by revenue Family owned Most admired 14% 15%. 24% 21%. 36%. 39%. 46%. 43%. 62%. None Implicit Explicit None Implicit Explicit None Implicit Explicit By comparison, family-owned companies are at 64% and Fortune s most admired companies are at 61%. This doesn t mean these company groupings aren t committed to the SDGs, but it does mean their communications on the SDGs has room for improvement in some cases..13. The largest companies consistently demonstrate Commitment to the SDGs UNGSII.

10 Largest by revenue Family-owned Most admired Volvo VW Nestle Novartis Sainsbury Roche Johnson & Johnson BHP Billiton Metro Otto Coca Cola Deutsche Telekom Glaxosmithkline Henkel Starbucks Marubeni Arcelormittal BASF Fedex Japan Post BMW. Hitachi Microsoft Panasonic Ford Glencore Nike Publix Royal Dutch Shell Google Barclays Cargill Tesco Disney Berkshire Hathaway Telefonica Aviva Walmart Costco Sinopec Lloyds Banking Tyson Boeing Pepsico Deutsche Bank Peugot AT&T. Wells Fargo Verizon Comcast Apple 0 100 200 300 400 0 100 200 300 0 20 40 60. Number of statements on the SDG Number of statements on the SDG Number of statements on the SDG. Fortune s most admired companies show the least communication on the SDGs in their annual reports. In some cases this may be because they are so confident in their reputation, but even these companies can benefit from making sure stakeholders see evidence of their Commitment .