Chubb Sustainability Report 2013
|Filer||First Affirmative Financial Network, LLC|
|Resolved Clause Summary||Sustainability report including ESG performance|
|Supporting Memo||Download PDF|
Reporting and rigorously managing environmental, social and governance (ESG) business practices make a company more responsive to a global business environment characterized by finite natural resources, changing legislation, and heightened public expectations. Reporting helps companies integrate and gain value from existing sustainability efforts, identify gaps and opportunities, and publicize innovative practices. ESG issues can pose significant challenges to business and society, and without comprehensive disclosure stakeholders and analysts cannot ascertain how our company is meeting those challenges.
The link between strong sustainability management and value creation is increasingly evident. A 2012 review conducted by Deutsche Bank of 100 academic studies, 56 research papers, two literature reviews, and four meta-studies on sustainable investing found 89% of studies demonstrated that companies with high ESG ratings also show market-based outperformance. In addition, 85% of the studies indicated that these companies experience accounting-based outperformance.
Investors also seek disclosure of companies’ ESG practices, as reflected in the growth of sustainability-focused investor groups. Over 1,000 signatories to the (UN) Principles for Responsible Investment, representing over $30 trillion in assets, have publicly pledged to incorporate ESG factors into investment decisions and request standardized reporting on ESG issues. Support levels for shareholder proposals addressing sustainability issues continue to climb: average support for proposals on environmental and social issues reached 20.5% in 2011, with a record four majority votes.
Corporations also recognize the value of sustainability reporting. According to KPMG, 80% of Fortune Global 250 companies produce GRI-based sustainability reports. In July 2012, The Conference Board reported that 45% of S&P 500 companies produce a sustainability report.
Although Chubb participates in the Carbon Disclosure Project and provides summary information covering environmental, social and governance issues on the corporate website, Chubb has not produced a GRI-based sustainability report since 2008. The Hartford and Allstate both issue sustainability reports. Without comprehensive disclosure, shareholders, investors and analysts cannot ascertain whether Chubb is properly managing ESG issues and our company’s impact on society.
Shareholders request the Board of Directors issue an annual sustainability report describing Chubb’s short- and long-term responses to ESG-related issues. The report should include, where feasible, objective statistical indicators and goals (where relevant) relating to each issue, be prepared at a reasonable cost, omit proprietary information, and be made available to shareholders by December 31, 2013.
The report should address relevant policies, practices, metrics and goals on topics such as: greenhouse gas emissions, water conservation, waste minimization, energy efficiency, and other relevant environmental and social impacts. We recommend the Company use the Global Reporting Initiative's (GRI) Sustainability Reporting Guidelines to prepare the report. The GRI is an international organization developed with representatives from business, environmental, human rights and labor communities. The Guidelines cover environmental impacts, labor practices, human rights, product responsibility, and community impacts. The Guidelines provide a flexible reporting system that allows the omission of content irrelevant to company operations.