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I Don’t Know Where to Turn Because Socially Responsible Investing Information Is Everywhere

What the world needs now is another multi-tiered, comprehensive online resource for helping investors and corporate leaders track and manage sustainability, corporate social responsibility, CSR reporting, and socially responsible investing. I actually don’t know anybody who really believes this. The fact is we already have way too much information, too many sites, too many indexes and ratings – and not nearly enough useful, digestible knowledge. 

And, yet, the information databases, Web portals and news aggregators continue to proliferate.

The latest entry is SustainabilityHQ™, founded by the New York-based Governance & Accountability Institute, Inc. This new, subscription-based online platform is designed to track the activities and influence of “watchers” such as market players and influencers. Institute Chairman/CEO Hank Boerner said the platform is designed to “help users ‘watch the watchers’ so that both corporate and investment managers can better understand and participate in” investors’ rising expectations about the sustainability, social responsibility and corporate governance of public companies. SustainabilityHQ, formerly known as INSIGHTS-edge™, offers a free trial demo, after which time a site license fee is charged.

In her October 12, 2010 CSRwire column, contributing writer Elaine Cohen offers some good insight into the new service, which has four sections: ESG & Sustainability, U.S. Public Employee Pension Funds, Sovereign Wealth Funds, and Asset Managers.

I can’t go into detail here about other platforms that offer additional, adjacent or redundant information, but here are some you may want to look at: Social Investment Forum, SocialFunds, AccountAbility, Global Reporting Initiative, Dow Jones Sustainability Index, Carbon Disclosure Project, FTSE KLD 400 Social Index, Global Environmental Management Initiative, CSRwire, Calvert Social Index, and so on. And every one of them offers a wealth of information, usually for a membership or subscription fee.

The bottom line is socially responsible investing is big business: accounting for $2.7 trillion in professionally managed U.S. portfolios. Knowing where to invest and what to look for are major challenges; buyer beware! Socially responsible investing information is also big business. And the “buyers” – the providers and consumers of the information – are rightfully wary, confused, concerned and overwhelmed.

Maybe SustainabilityHQ will prove to be the ultimate full-service, easy-to-use solution. Or could it be just one more gas guzzler on the information superhighway? The proof will be in its own sustainability and attraction power because I’m sure “the next big thing” announcement is due out any day now. And then another. And another…

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Sustainability Rankings, Ratings and Indexes, Oh My!

More than 300 different organizations claim to certify organizations, facilities, processes products or services as “green” or “sustainable.” The alphabet soup of organizations and certifications seems to have no limits, with new rankings, ratings and indexes seemingly appearing on the scene almost monthly.

So what is an organization to do?

The first and most important step is research – not all ratings are created equal. Some ratings are frighteningly rigorous, others are “pay to play” and you’re in, and most others are somewhere in between. Some are geared to investors while others are consumer-oriented. Some systems you apply for, while others evaluate you without your knowledge and decide whether you’re worthy of being listed. Some work hard to include you but may be quick to drop you if you fall below certain criteria. Some won’t even consider you if you’re in businesses involved in animal testing, tobacco, weapons, alcohol and gambling. Some factor “reader opinions” into their ratings.

Once you have done your own research, if you’re interested, the ideal next step is to consult with a sustainability expert (in-house or external resource) to help you determine which rankings, ratings and indexes fit your business, goals and strategies. For many organizations, for example, the best opportunities will lie in pursuing sector-specific listings (e.g. sector indexes associated with the Dow Jones Sustainability Index). Many organizations also find it helpful to use the ranking systems for benchmarking and planning – even if they’re not going to proactively participate in the systems.

Here are some good places to start the research:
- Dow Jones Sustainability Index
- Carbon Disclosure Project
- KLD 400
- Calvert Social Index
- Global 100 Most Sustainable Corporations in the World
- Green Good Housekeeping Seal
- Good Company Seal
- U.S. Green Building Council
- Walmart Sustainability Index

What rating systems do you look at?

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Sustainability Seminar: Walking the Walk and Talking the Talk

Tomorrow morning, on Tuesday November 10, Dix & Eaton will be presenting a sustainability management seminar on “Walking the Walk and Talking the Talk.” Special thanks to John Hoekstra, manager of sustainability for Summit Energy Services, Inc., for co-presenting with me.

Big agenda planned: consumer perceptions; sustainability roadmap; energy, carbon, water and waste strategies; reputation management; greenwashing vs. greenblushing; and sustainability indexes.

Unfortunately, the room can accommodate only about 20 people so we’re going to be live tweeting the event.  Follow @D_and_E and/or #wwtt for live updates tomorrow.  Program and tweets start at 8:30 sharp; ends at 10 a.m.

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