Oct. 28, 2008 - Three-quarters of U.S. companies now publish data on their environmental, social and governance performance - twice as many as in 2005, according to a new KPMG report. Of the top 100 U.S. companies by revenue, 74% published corporate responsibility (CR) information in 2008 either as part of their annual financial report or as a separate document, the report finds. Globally, 80% of the Global Fortune 250 companies now release CR data, up from 64% percent in the last KPMG survey in 2005.

"With increasing evidence that conducting business responsibly contributes to shareholder value, it's not surprising that more U.S. companies are highlighting their corporate responsibility efforts," said Eric Israel, a managing director and sustainability services leader for the Advisory practice of KPMG LLP.

The survey also finds that, for the first time, ethics outweighs economics as the primary reason for making CR disclosures. The survey says that 70% of all companies reported such disclosures to stakeholders because of ethical considerations, while 50% cited economic concerns as the leading reason.

But Israel says that does not mean companies are not relating corporate responsibility with their bottom line. "More U.S. companies are beginning to see the link between profits and principles," he says. "Even in a difficult economy we expect this trend to continue, as enhanced transparency and disclosure on non-financial matters will likely grow in importance."

Corporate responsibility reporting has become a norm rather than an exception, says Israel, who points to a number of market drivers that help explain the shift:

Federal: Nearly 200 bills have been introduced this year on climate change, greenhouse gases (GHG), and related issues, five times the number of bills introduced in 2003.

States: In late 2008, 10 Northeastern U.S. states opened the nation's first trading market greenhouse gas permits, with buyer demands for "allowances" four times the existing supply, while seven Western states plan a similar system in 2012.

Legal: Greenhouse gas emissions have been recognized by the courts as air pollution under federal statutes, and states have recently taken legal action over climate risks.

Market: The U.S. Climate Action Partnership, a group of businesses and environmental organizations, have sought legislation for reduced greenhouse gas emissions, calling for climate change policies and advocating reduced GHG emissions by 60-80% by 2050.

Supply Chain: An increasing number of companies are requiring that their vendors and suppliers adhere to a strict code of conduct and report on how they manage environmental, social and governance issues.

The survey also finds that companies using third-party auditors has jumped 10% since 2005. (The total number may still be low, however. A separate survey on Fortune 50 companies out last month found that accountability on company sustainability websites is low, with few explaining the significance of unfavorable results or including third-party verification in their reporting.)