Companies That Use AccountAbility’s AA1000 Assurance Standards Receive Higher ESG Scores

This report, AA1000AS Found to Add Value to ESG Reporting, details how using external standards to draft a company’s ESG report builds trust in the company and improves the quality of reporting.

The study found:

• On a scale of 100, issuing an ESG report increased a company’s overall ESG rating score by an average of 5.4 points over two years—0.9 points more than non-reporting companies gain over that time. See Figure 1 below.
• Companies using the AA1000AS to assure their report received a 5.9 point increase, 1.4 points over non-reporters. The score of 59.1 for entities who assured their ESG reports with AA1000AS places those entities in the top quartile of all companies tracked.
• Regular users of the standard saw continuous growth year-over-year on their ESG rating score.
• The AA1000AS v3 helped companies grow their scores specifically in six sustainability subcategories including leadership ethics; board management; training, health and safety; diversity and labor rights; compensation and benefits; and product indicators*.*

Figure 1: Two Year Change in Company ESG Rating Scores

ESG reports are widely regarded as the main source of data used by ESG ratings companies and research firms to compile their ESG score. As the number of companies reporting this information through sustainability reports increases, stakeholder scrutiny also increases.

Sustainability experts agree that issuing an ESG report improves how a company is viewed by their stakeholders.

“The AA1000AS v3 provides a holistic way of holding an organization accountable for its sustainability management, performance, and reporting practices by assessing the adherence of the organization to the AA1000 AccountAbility Principles,” Mr Sunil (Sunny) A. Misser, CEO of AccountAbility stated.

About the AA1000AS v3

Intended to go well beyond simple data verification, the AA1000AS v3 focuses on the processes required for responsible and complete assurance engagements based on the AccountAbility Principles of Inclusivity, Materiality, Responsiveness, and Impact.

Companies that follow the AA1000 principles in their ESG report and use the AA1000 standards see the following benefits:

1. Increased credibility of their sustainability reporting and assurance processes and an improved alignment with external sustainability regulations and standards.
2. Adoption of a common language with investors, which builds confidence in sustainability information and helps investors make better informed decisions.
3. A culture of continuous improvement and innovation.

As the report conducted by CSRHub concluded, following these principles and standards results in a higher ESG rating score than those that do not.

The full report is available to read here: AA1000AS Found to Add Value to ESG Reporting

Contact:
Ms. Rachel Rose
AccountAbility
Global Head of Operations
Email: rachel.rose@accountability.org
Web: www.accountability.org

About AccountAbility:

AccountAbility is a specialist global Consulting and Standards firm that works with businesses, investors, governments, and multilateral organizations to innovate and advance the global Sustainability/ ESG agenda by improving the practices, performance, and impact of organizations. The firm focuses on delivering practical, effective, and enduring results that enable our clients to succeed.

AccountAbility is a Public Benefit Corporation, operating globally through a highly qualified team from offices in New York, London, Riyadh, and Dubai. The firm is the recipient of multiple business awards from the Financial Times, Forbes, and Capital Finance International, and its website is archived with the United States Library of Congress. Learn more at www.accountability.org.