Canadian companies rank fairly low compared to the rest of the world when it comes to sustainability reporting, according to a KPMG survey.

However, a high percentage of companies that submit a report do disclose their performance across a broad range of issues, such as health, safety, environment and social issues, says the International Survey of Corporate Sustainability Reporting 2002.

KPMG assessed the state of sustainability reporting among the top 250 Global Fortune 500 companies (GFT250) as well as the top 100 companies in 19 countries. Similar surveys were held in 1993, 1996 and 1999.

The survey reveals that 19 out of the 100 Canadian companies polled are publishing separate corporate reports on any non-financial issues such as health and safety, the environment or sustainability, which ranks them 11th out of 19 countries included in the survey overall.

Eight out of 19 Canadian companies provide a full sustainability report, as opposed to just health and safety and/or environment. But of the 19 Canadian companies that report, only two (10 per cent) are getting their reports verified, which places them at 14 out of the 19 countries surveyed.

“I believe there are a number of reasons why Canadian companies do not compare favorably to other countries when it comes to reporting in general,” says Andrew Howard, principal with KPMG’s Corporate Sustainability practice.

“Simple lack of awareness of the procedure and the benefits is one. Cost is clearly another. The greatest impediment, however, is the uncertainty with respect to how to manage reputational risk.

“In other words, is it better to disclose publicly on these issues – good and bad – or is it better not to disclose? With increasing demands from shareholders and other stakeholders, I’m convinced we will see substantial improvement in Canada’s numbers on sustainability reporting in the coming years.”

Of the GFT250 companies surveyed, 45 per cent published a separate corporate report on their environmental, social or sustainability performance, compared to 35 per cent in 1999. While only 19 per cent of Canadian companies are reporting, Japan has the highest percentage (72 per cent), followed by the U.K. (49 per cent), U.S. (36 per cent), Netherlands (35 per cent), Finland (32 per cent) and Germany (32 per cent).

The KPMG report shows that health, safety and environment are still the most common types of report, but others are emerging including sustainability and social reports.