The Road to Credibility: A Survey of Sustainability Reporting in Brazil

The credit crunch and ensuing economic crisis have catalyzed a rapid shift in public opinion on the roles of business and government, and put issues of trust, transparency and disclosure at the top of the corporate agenda – for the developed and developing world alike.

The Road to Credibility: A Survey of Sustainability Reporting in Brazil (Download Report in English | Download Executive Summary in English | Download do Relatório Completo em Português) is the eighth global (in partnership with UNEP), and first national (in partnership with FBDS), survey of corporate sustainability reporting completed for Global Reporters.

Launched on 9th December 2008 in São Paulo, Brazil, the report assesses transparency and disclosure in sustainability reporting in Brazil, and highlights the key challenges and best practices of ten of the country’s leading reporters.

Press Release: Brazilian Top 10 Raise The Bar on Sustainability Disclosure: New SustainAbility, FBDS, & UNEP Report, The Road To Credibility, ranks National Top 10
(December 9, 2008)

• Overall, the report identifies Brazil as ahead of many emerging economies in corporate disclosure of sustainability performance. Some 76 Brazilian companies issued sustainability reports in 2006-07, compared to only 8 equivalents in mainland China and 12 in India.
  
• The report highlights include how: financial markets are helping to drive disclosure; how sustainability is still not adequately integrated into core business strategy and governance; and how materiality, stakeholder engagement and tangible targets must be more effectively embraced if reports are to be credible tools for driving trust, performance and innovation.
  
• The report faces head on the common criticism that “reports are not read”. It predicts a future accountability agenda where reporting is integrated into mainstream communication channels, stand-alone sustainability reports disappear, and technology compels a wave of radical transparency.

The Brazilian Top Ten scored an average of 47%, which compares well to the most recent international ranking of Global 50 Leaders, which scored 57% in 2006, against the same methodology.

• Top of the field, Natura Cosméticos (#1) led the way in demonstrating that sustainability is integral to, and embedded within, its business strategy, brand and success. Of special note is the company’s development of ‘relationship principles’ to guide its public affairs, as well as its strength in management reporting and emphasis on value chain management.
  
• Ranked second, Suzano Petroquimica (#2) excelled in its description of strategy and its business integration of sustainability, including the detailed articulation of its corporate governance structure and ‘Vision 2015’, addressing related challenges of profitability, growth and sustainability.
  
  
• Ampla and Coelce (tied #3) both had strong presentation of performance, focusing on carefully identified material indicators and clear interpretation of performance and comparison with competitors. Important to note that both companies are owned by Endesa which may speak to the similarity in their results.

SustainAbility would like to thank and acknowledge the following organizations, companies and individuals for their support:

• Sponsors: Banco Itau, Rhodia Energy Services (Diamond); Shell Brasil, SESI (Gold); Sabesp, Tetra Pak, Light, Holcim Brasil, Natura (Silver)
  
• Advisory Group: João Gilberto Azevedo, Instituto Ethos; Fábio Feldmann, Executive Secretary of the Forum Paulista on Global Climate Change and Biodiversity, Professor Celso Funcia Lemme, Federal University of Rio de Janeiro, Brazil; Cristina Montenegro, UNEP representative in Brazil; Glaucia Terreo Coordinator of GRI activities in Brazil
  
• Supporters: CorporateRegister.com; Instituto Ethos
  

The Road to Credibility is the result of a unique partnership between SustainAbility Ltd, Fundação Brasileira para o Desenvolvimento Sustentável (FBDS) and the United Nations Environment Programme (UNEP). SustainAbility is delighted to have worked with UNEP since 1996 under the Global Reporters Program banner. This year, the addition of FBDS, brought the local insight and operational excellence to make The Road to Credibility possible. It has been developed with the highest regard for independence and integrity.

Media Coverage for The Road to Credibility: A Survey of Sustainability Reporting in Brazil


International Media Coverage

• Brazilian Top 10 Raise The Bar on Sustainability Disclosure
  12/10/2008 (Corporate Social Responsibility)
  
• Brazilian Top 10 Raise The Bar on Sustainability Disclosure: New SustainAbility, FBDS, & UNEP Report, The Road To Credibility
  12/10/2008 (Eco Innovation)
  
• Brazil Takes Leading Role in Sustainability Among Emergents
  12/10/2008 (Brazzil Magazine)
  
• The road to credibility
  12/29/2008 (GreenBrazil.wordpress)
  
• Brazilian top 10 raise the bar on sustainability disclosure
  12/10/2008 (Corporate Social Responsibility (Europa) )
  

Brazilian Media Coverage

• PAPEL E CELULOSE: Relatório da Irani é Top 10 em pesquisa
  01/12/2009 (Gazeta Mercantil)
  
• Celulose Irani entre os 10 líderes no ranking
  12/10/2008 (Associação dos jornais de SC)
  
• Pesquisa avalia relatórios de sustentabilidade
  12/10/2008 (Mercado Ético)
  
• Pesquisa aponta melhores relatórios de sustentabilidade do Brasil
  12/09/2008 (Epoca Negócios online)
  
• Brasil precisa elevar compromisso com sustentabilidade
  12/09/2008 (Valor Economico)
  
• Estudo avalia relatórios de sustentabilidade no Brasil
  12/08/2008 (Último Segundo)
  
• Raio X da Sustentabilidade
  12/08/2008 (Plurale)
  
• Pesquisa mostra avanço dos relatórios de sustentabilidade
  12/04/2008 (Mercado Ético)
  
• FBDS e SustainAbility lançam o relatório “Rumo à Credibilidade: uma Pesquisa de Relatórios de Sustentabilidade no Brasil”
  12/04/2008 (Instituto Ethos)
  
• Brazil’s Leading Reports - Referências para os melhores relatórios de sustentabilidade
  12/04/2008 (Consumindo)
• Falta de credibilidade
  Dezembro 2008 (Razao Contabil)