page
20
Figure 6: First generation indicator disclosure
rate by economic region, 2011
As shown in
Figure 7
, the compound annual growth
rates (CAGRs) of the disclosure rates of the seven
first generation indicators for companies listed on
developed market exchanges are significantly lower
than those of their emerging markets counterparts.
This shows that companies listed on exchanges
in emerging markets are improving disclosure at
a faster rate than in developed markets; however,
as the indicator disclosure rate chart (
Figure 6
)
suggests, the emerging markets exchange CAGRs
benefit from lower overall disclosure rates, which
lowers the bar when calculating growth rates.
Still, these data reveal that a great catch-up process
is taking place on the world’s emerging markets-
based exchanges. A back of the envelope analysis
suggests that emerging markets exchanges will
overtake developed market exchanges by 2015,
in terms of disclosure of the seven indicators, on
average, assuming that 2007 – 2011 disclosure growth
rates continue going forward.
33
Sustainability disclosure excellence among emerging
markets firms is typified by the Brazilian mining
giant Vale SA, India’s Tata Motors and Digi, a
Malaysian telecommunications company. These
firms are three of only 117 large companies globally
(out of a total of 3,972) that currently offer their
investors complete first generation sustainability
reporting.
33 This calculation assumed that disclosure rates for developed and emerging
markets exchanges continue to grow from 2012 onwards at the respective
compound annual growth rates experienced over the 2007 – 2011 period.
The number of years required for emerging markets exchanges to surpass
the disclosure rates of developed market exchanges was then calculated for
each indicator. An average of the number of years required across the seven
indicators was then taken to determine when emerging markets exchanges
would overtake the exchanges of developed markets.
9%
0%
2%
6%
3%
2%
-3%
28%
24%
22%
21%
20%
20%
8%
-5%
0%
5%
10%
15%
20%
25%
30%
Employee
turnover
GHGs
Water
Lost-time
injury rate
Waste
Energy
Payroll
DEVELOPED
EMERGING
Figure 7:
First generation indicator disclosure growth rate by economic region, 2007 – 2011
Source: CK Capital
1...,17,18,19,20,21,22,23,24,25,26 28,29,30,31,32,33,34,35,36,37,...71