B3 announces results of 'Report or Explain for Sustainable Development Goals (SDG)'

By: The WFE Focus Team Dec 2018

B3 has announced the results of the second year of the 'Report or Explain for Sustainable Development Goals (SDG)' initiative. This joint strategy with the Global Reporting Initiative (GRI) sets down efforts by companies listed on B3 to publish sustainability or integrated reports that incorporate the SDGs - 17 global goals defined in 2015 by the United Nations.

The initiative is voluntary and was open to all 437 publicly-traded companies in 2018. Of these companies, 169 answered the questionnaire, equivalent to 39% of those listed on B3. Of the responding companies, 26% publish reports taking the SDGs into consideration, include them, intend to include them, or are studying the possibility of including them in their reports.

There have been some advances regarding the survey’s methodology in 2018. From now on, B3 will publish a breakdown of the results  of companies listed on the Ibovespa index and Corporate Sustainability Index (ISE). In addition to this, data previously gathered through self-reporting will now also be done through active search. “We began to carry out the search as in our day-to-day experience with companies we found that there are more firms including the SDGs in their reports than taking part in the survey. Furthermore, it is a way for us to encourage companies to make their information public, creating greater transparency for investors,” explains Sonia Favaretto, Media Relations, Sustainability, Communications and Social Investment Managing Director of B3.

Another development is that information previously published in PDF, is now available in Excel, which is in line with studies that B3 is carrying out in partnership with the Columbia Center for Sustainable Investment (CCSI) and the Center for Sustainability Studies at the Getulio Vargas Foundation (FGVces) about Big Data and artificial intelligence. The study concludes that investors better capture information published in this way.

Of the 62 companies listed on Ibovespa, 41 published their reports taking the SDGs into consideration. Of  this number, 31  responses were gathered by self-reporting and ten through active search. With regard to the ISE, 100% of companies included the Sustainable Development Goals in their reports. Of the 30 companies in the portfolio, 27 answered the survey and three were identified through active search.

The purpose of the initiative is to foster understanding of the SDGs and to progressively incorporate them into the corporate strategies of listed companies. Furthermore, through the Ibovespa breakdown, B3 has come to understand better how companies that are market leaders in Brazil are working with the sustainability agenda.

To view the full result of the Report or Explain for Sustainable Development Goals, please access the database on the B3 website containing links to company reports, the explanations of the companies that have not yet adopted these practices and those that did not reply.