UK - Corporate responsibility reporting is proving an "excessive burden" for listed companies and fails to meet the demands of institutional investors, new research reveals.
A survey published by the UK Social Investment Forum and the London Stock Exchange found that only 35% of listed companies felt they were able to provide the information required to a satisfactory level.
More than 50 leading businesses and 45 institutional inv-estors were polled by research specialist Taylor Nelson Sofres to assess the flow of non-financial information.
The bulk of corporate governance reporting falls in the current annual general meeting season, with only around a third of companies believing they could satisfactorily meet deadlines.
UKSIF executive director Helen Wildsmith said: “Com-panies are finding it difficult to prioritise one source or agency over another and this creates a disjoint between what companies spend their time on and where institutional investors source their information.”
Half of the fund managers surveyed called for more timely and complete information and said the channels of communicating information were not meeting their needs.
Jupiter Asset Management head of SRI Emma Howard Boyd (pictured) said the findings were “alarming” and highlighted a drain on resources which could be better used to improve corporate performance.
UKSIF and the London Stock Exchange have now formed a committee to look at ways to reduce the reporting burden.
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