Research: 74 pct of top 100 Romanian companies by revenues post slight increase of sustainability in 2017

The research on Romania’s top 100 companies by revenue (N100), from KPMG Survey of Corporate Responsibility Reporting 2017, shows a slight increase in the number of companies reporting on sustainability. More specifically, 74 of the N100 post sustainability related information – either in a local report or by providing data for a CR Group report – marking a 6 percent increase by comparison with the 2015 edition of the survey.

According to the results of this latest survey which are based on analysis of reports launched in the period 2015-2017, out of the total of 74 companies disclosing sustainability data, 35 report information on their CR practices and performance exclusively via the parent company or within the group report, 30 subsidiaries of multinationals operating in Romania publish sustainability information on their local website and only 9 Romanian private or state-owned firms publicly communicate this data.

Geta Diaconu, Sustainability Advisory director at KPMG (photo): “The main trigger for the increase in the number of reports since the issuing of the previous survey is the commitment of multinationals with operations across our country towards increased transparency. The effects of the Directive on non-financial reporting have not yet been experienced, and for the moment the market is at the stage of understanding the topic, exploring potential alternatives, tailoring a strategy and training people in this field of activity. Consequently, the number of published reports has not increased significantly.Hopefully, during the next couple of years – due to regulatory requirements, market pressure and increased awareness– we will notice significant progress in Romania and in the region both in terms of the number and the quality of CR reports”.

Alin Tiplic, manager of Sustainability Advisory at KPMG in Romania, said: “Reporting itself is merely an instrument, and therefore to really add value and prepare themselves for the future, businesses should become more connected with and contribute to global initiatives focused on making the economy greener and building sustainable societies. These global trends are becoming more prominent, and are also having an impact on the business environment, so immediate action is required.“

Moreover, almost three quarters (72 percent) of large and mid-cap companies worldwide do not acknowledge the financial risks of climate change in their annual financial reports, according to the report.

Of the minority that do acknowledge climate-related risk, less than one in 20 (4 percent) provides investors with analysis of the potential business value at risk.

KPMG’s survey studied annual financial reports and corporate responsibility reports from the top 100 companies by revenue in each of 49 countries: a total of 4,900 companies.