Recent posts on HIP Investor

Practitioners’ Perspectives
Sustainability leaders discuss the function and future of materiality analysis

Part three of our materiality blog series

In the previous segment of our materiality blog series, we analyzed GRI reporting criteria to determine whether materiality analysis is truly an integral component of a report based on the GRI G3 Sustainability Reporting Guidelines. We found that while the language in the GRI Guidelines strongly encourages the use of materiality, there is no formal requirement for companies to follow any particular analysis process.

Extending our inquiry, we reached out to sustainability professionals at companies currently using the GRI Guidelines—hoping to better understand the perceived role of materiality analysis within corporations themselves.

A powerful tool

In speaking with best-practice leaders, including representatives from Timberland, EMC, and Intel, we posed the following questions:

Have you conducted a materiality analysis within your company? If so, how?
Do you believe that materiality analysis has… More >

I sat on a panel at a NIRI chapter meeting on Thursday with Don Kirshbaum, Investment Officer, Policy, at the Connecticut State Treasurer’s Office and Julie Gottlieb, who led the launch of Lenovo’s sustainability program and first report. The discussion was lively: several of the IROs in the room noted that they had never been asked about ESG risk, and one asked whether there had been any studies regarding performance of companies that focus on ESG performance. Happily, I was able to point to SAM’s long-short portfolio (long sustainability leaders, short sustainability laggards), which shows significant outperformance compared with each group; HIP Investor’s HIP 100 IndexSM, which, since 2004, has outperformed the S&P100; and a chart showing the DJSI solidly outperforming both the S&P500 and the DJIA even in this recession.

After the discussion, I was thinking, why are we still having… More >