Tuesday, December 16, 2008
Updated Database of Contacts in the Field of Socially Responsible Investment (SRI) – December 2008
From early November until mid-December 2008, PFS Program Intern Rajna Buncic (Bosnia and Herzegovina) updated the PFS Program’s Database of Contacts in the Field of Socially Responsible Investment (SRI).
The initial database was published on this page of the PFS Program website on October 25, 2002. It contained contact information about more than 275 organizations whose SRI activities were reported online and/or in the financial press. The initial database divided the organizations among eight categories.
Since then, the database has been updated six times. A second edition of the database was published on February 16, 2005; it contained 726 organizations divided among ten categories. A third edition of the database was published on October 7, 2005; it contained 709 organizations divided among ten categories. A fourth edition of the database was published on July 27, 2007; it contained 793 organizations divided among ten categories. A fifth edition of the database was published on December 17, 2007; it contained 799 organizations divided among ten categories. A six edition of the database was published on August 1, 2008; it contained 854 organization divided among 11 categories.
This seventh edition of the database, with current information as of December 15, 2008, contains 920 organizations divided among the following 12 categories: Academia (35 institutions); Awards/Prizes (7); Companies/Listed Companies (248); Conferences and Events (96); Financial Institutions (129); Governmental Organizations (49); Indices (30); Media (57); Non-Governmental Organizations (187); Professional Associations (35); Public-Private Partnerships (1); and Rating/Research (46). It includes institutions from 49 countries in Africa, Asia, Australia, Europe, North America and South America.
This most recent edition of the database includes a new country filter that enables the user to search institutions by country. Other changes include the following: The name of the worksheet “Award” has been changed to “Awards and Prizes.” The name of the worksheet “Conferences” has been changed to “Conferences and Events.” A new worksheet entitled “Public-Private Partnerships” is added.
As noted in the sixth edition of the database published in August 2008, the number of conferences on SRI topics, the number of organizations providing SRI rating/research services and the number of professional associations addressing SRI issues has increased significantly during the past year.
In this seventh edition of the database there are 16 institutions promoting alternative and renewable energy development – one award/prize, one company, eight conferences, four NGOs, and two media. This illustrates the growing interest in SRI in the energy sector.
In addition to the institutions which were already recognized SRI leaders in 2002, the current edition of the database includes 66 new organizations, some of which are recently-established and others which have become known to the PFS Program over the past four months. The current edition also includes all PFS Program partners engaged in corporate governance, corporate social responsibility (CSR) and/or SRI initiatives as well those organizations included in the PFS Program’s distribution list. To download the database, please click on the link below:
Tuesday, December 9, 2008
Roundtable to Present Pilot Macedonian Surveys
Skopje, Macedonia
On Tuesday, December 9, 2008 the Macedonian Stock Exchange, the International Finance Corporation (IFC), USAID’s Business Environment Activity and the PFS Program organized a Roundtable to present two Pilot Surveys of the Largest Listed Companies in Macedonia: Investors Relations Online and Reporting on Corporate Social Responsibility (CSR).
This Roundtable, held in Skopje, marked the PFS Program’s first activity in Macedonia and its 116th regional event since the PFS Program was launched in late 1999.
At the Roundtable, a representative of the Macedonian Stock Exchange presented the two Pilot Surveys of the Largest Listed Companies in Macedonia: Investor Relations Online and Reporting on CSR. The surveys analyze disclosure of extra-financial information by the 20 largest listed companies in Macedonia (by market capitalization), specifically, information about corporate governance as well as environmental, social and governance (ESG) data. The Macedonian country surveys employ the same methodology as the PFS Program regional surveys conducted semi-annually since 2001.
Thereafter, the PFS Program compared the data from the Macedonian surveys with reporting by peer companies in Bulgaria, Croatia and Romania. Also, the PFS Program presented detailed comparative data from its two semi-annual surveys: Investor Relations Online and Reporting on Corporate Social Responsibility (CSR) by the largest listed companies in 11 Central and Eastern European (CEE) countries; Brazil, Russia, India and China (BRIC); and Ukraine. Here too the focus was on comparison of disclosure practices of Macedonian companies with peers in CEE, South East Europe (SEE), BRIC and Ukraine.
Following the presentations, participants discussed the Macedonian pilot surveys and the drivers behind financial and non-financial disclosure in Macedonia as well as across CEE, SEE, BRIC, Ukraine and other emerging markets.
A total of 45 persons representing academia, financial sector donor institutions, financial media, listed companies and regulatory authorities participated in the Roundtable
This Roundtable is part of an ongoing and multi-faceted PFS Program regional initiative dedicated towards improving the quality of financial and extra-financial reporting across CEE as well as SEE.
To download the Roundtable agenda, presentations, survey databases and a list of participants, please click on the links below.
Wednesday, December 3, 2008
Companies with Best Investor Relations and Member of the Year in the Baltic Market Announced by NASDAQ OMX
Tallinn, Estonia; Riga, Latvia; and Vilnius, Lithuania
NASDAQ OMX Group, Inc. tonight announced the companies from NASDAQ OMX Baltic market with the best investor relations (IR) in 2008. The Baltic Market Awards ceremony took place simultaneously in Tallinn, Riga and Vilnius, the capitals of the Baltic States. The live broadcast of the ceremony enabled an invited audience of more than six hundred guests to enjoy a single pan Baltic ceremony and congratulate the winners regardless of being physically located in different countries.
Investor relations in 2008 were evaluated and winners awarded in 5 categories
• The Best Investor Relations in the Baltic Countries - “SAF Tehnika”
• The Best Investor Relations in the Baltic Countries among Small Cap Companies – “SAF Tehnika”
• The Best Annual Report in the Baltic Countries – “VST”
• The Best Investor Relations Online in the Baltic Countries – “Grindeks”
• The most visible improvement over the year in the Baltic Countries – “Eesti Ehitus”
Also best companies in each Baltic stock exchange were announced:
• The Best Investor Relations in Tallinn Stock Exchange - “Baltika”
• The Best Investor Relations in Riga Stock Exchange - “SAF Tehnika”
• The Best Investor Relations in Vilnius Stock Exchange – “TEO LT”
In view that the market quality is driven not only by issuers but also by stock exchange members “The member of the year in the Baltic countries” award acknowledging the member with the highest trading activity and the best practices is also part of the Baltic Market Awards project. The Member of the Year prize for 2008 was awarded to “SEB Bankas” from Lithuania.
“Capital markets are by their nature dynamic and thus investor relations evolves continuously. Over the past five years, a number of drivers have significantly impacted investor relations in the Baltic Markets, among them: reporting requirements of International Financial Reporting Standards (IFRS), European Union directives and national legislation; adoption of corporate governance codes, increased standardization of extra-financial reporting of environmental, social and governance (ESG) indicators; investor demands for improved corporate disclosure; information technology advancements and other drivers It is extremely encouraging to see the progress made in the Baltic Market over a short period of time, and we hope to continue to drive improvements in the future,” noted Geoffrey Mazullo, Chairman of the Baltic Market Awards Evaluation Committee and Director of the PFS Program.
“Excellence in investor relations is being honored. As an organization we value the power of IR; in fact we are unique as an exchange in the breadth and depth of support we provide to IR professionals. Congratulations to our 2008 winners and I invite all our issuers and members to use the network and possibilities that our global company offers to you not only in Baltics but also in Stockholm, London, NY and many other places in the world.
I also want to thank our excellent members for their support and extend particular thanks and congratulations to our member of the year,” said Bob Greifeld, CEO of The NASDAQ OMX Group addressing the winners and the audience.
The Baltic exchanges introduced The Baltic Market Awards in 2006. The aim of the project is to highlight best achievements in IR among listed companies and motivate companies to pay attention to investor relations and adapt best practices, as well provide companies with individual evaluation and consultancy from exchange side. Each company is evaluated by more than 100 criteria, comprising the quality of annual and periodical reports, disclosures, web page and analysts’ opinions. This year 68 companies were evaluated.
“We are pleased to see the improvement. The average score for Baltic companies has increased by 9,3 % in 2008. Since we started the project in 2006 the results have shown a remarkable 28% improvement which means companies have made a substantial effort to meet the needs of investors and communicate with them openly. Our Customer Surveys also show that The Baltic Market Awards initiative as such has been one of the driving forces behind the improvement. The biggest progress is related to the quality of periodic reports, web pages, and annual reports, the quality measure of those have almost doubled. However the quality of corporate disclosures does not show that remarkable results. This is still something that we expect companies to work on in the future,” said Henrik Elfving, president of NASDAQ OMX Baltic market.
The members of the Evaluation Committee represent academics, investors and the Baltic Stock exchanges; as noted above, it was chaired by Geoffrey Mazullo, Director of the PFS Program. The company analysis was conducted by students from the Stockholm School of Economics in Riga, under the supervision of the evaluation committee and the Stock Exchanges.
Thursday, November 13, 2008 - Friday, November 14, 2008
TBLI Conference Europe 2008
Amsterdam, The Netherlands
On Thursday, November 13 and Friday, November 14, 2008 TBLI Group organized TBLI Conference Europe 2008 in Amsterdam, The Netherlands.
According to the organizers, “Triple Bottom Line Investing (TBLI) is based on the principle that positive financial, social, and environmental returns are not mutually exclusive - sound investments ensure returns in all three areas. TBLI organizes the largest global annual event on sustainable investment – annually in Europe since 1999 and for the second time in Asia in 2008. The theme for TBLI 2008 was opportunity; keynote speeches and breakout sessions focused on the growth of socially responsible investment (SRI) in mainstream investment, new initiatives that are driving this growth and the emerging opportunities in alternative asset classes.”
At TBLI Conference Europe 2008, TBLI Group celebrated ten years of TBLI Conference. Appropriately, this was TBLI Group’s largest conference to date in terms of sponsorship and attendance, with more than 600 guests. In his welcome remarks, Robert Rubenstein, Founder and CEO, TBLI Conference, made a special welcome to the Eastern European Socially Responsible Investment (SRI) Delegation to TBLI Conference Europe 2008. The Mayor of Amsterdam officially opened the Conference.
TBLI Conference and the PFS Program co-sponsored the Eastern European SRI Delegation, which included participants from several South East European (SEE) countries and speakers as well as jury members in two Workshops dedicated to Eastern Europe. Participants included representatives of the following institutions: the Albanian Financial Supervisory Authority, the Securities Commission of the Federation of Bosnia and Herzegovina; the Insurance Agency of Republika Srpska, Bosnia and Herzegovina and the Bucharest Stock Exchange – Corporate Governance Institute.
Geoffrey Mazullo, Director, PFS Program, moderated two Workshops on TBLI in Emerging and Transition Economies in Central and Eastern Europe (CEE): Workshop Two on Thursday afternoon, November 13, 2008 and Workshop 14 on Friday morning, November 14, 2008. Mr. Mazullo is a member of TBLI’s International Advisory Group.
Speakers represented the following institutions: Erste Sparinvest (Austria); Seiler Asset Management (Austria); Limestone Investment Management (Estonia); Petrom (Romania); and Transelectrica (Romania). The CEO of oekom research (Germany) and the CEO of GES Investment Services (Sweden) served as jury members, commenting briefly on each presentation, before opening the discussion to Workshop participants. Presentations during the two Workshops included the following: a global microfinance fund investing in Eastern Europe; company presentations by two Romanian listed companies; and presentations of the first two SRI funds dedicated to Eastern Europe.
Participation in TBLI Conference Europe 2008 is part of the PFS Program’s ongoing commitment to strengthening reporting on environmental, social and governance (ESG) issues and promoting responsible investment in CEE as well as SEE.
The complete conference agenda, speaker bios and presentations may be found on the TBLI Conference Europe 2008 website.
To download the presentations from Workshop Two and Workshop 14 as well as a list of members of the Eastern European SRI Delegation to TBLI Conference Europe 2008 please click on the links below:
 | Workshop 2 - Petrom - TBLI Europe - November 13, 2008.pdf - 1,250 KB |
| Workshop 2 - Seiler Asset Management - TBLI Europe - November 13, 2008.pdf - 1,587 KB |
| Workshop 14 - Limestone - TBLI Europe - November 14, 2008.pdf - 1,983 KB |
| Workshop 14 - Transelectrica - TBLI Europe 2008 - November 14, 2008.pdf - 1,585 KB |
| Workshop 14 - Erste-Sparinvest - TBLI Europe - November 14, 2008.pdf - 3,078 KB |
| List of Members of EE Delegation to TBLI Conference Europe 2008.pdf - 12 KB |
Saturday, October 25, 2008 - Friday, December 12, 2008
NAIC Fall 2008 International Internship Program
United States
A specialist of the reporting and analysis division of the supervisory department of the Albanian Financial Supervisory Authority (AFSA) participated in the fall 2008 international internship program organized by the National Association of Insurance Commissioners (NAIC) from October 25 through December 12, 2008.
Following a one-week introductory training program at the NAIC in Kansas City, MO with interns from other emerging markets, the intern undertook a one-month on-site internship with the North Carolina Department of Insurance. Thereafter, she and the other interns participated in the NAIC National Meeting in Dallas, TX. At the end of the internship program, all of the interns participated in close-out activities in Washington, DC organized by the NAIC’s internship coordinator.
Detailed information about the NAIC International Internship Program may be found on the International Relations page of the NAIC website.
The PFS Program emphasizes peer-assisted learning as an effective professional development mechanism. This internship program provided an excellent opportunity for the junior staff member of the AFSA to expand her knowledge base and skills. Each of the participating institutions contributed towards the cost of this program.
Wednesday, October 22, 2008 - Thursday, October 23, 2008
Regional Workshop on Insurance Supervision
Ljubljana, Slovenia
On Wednesday, October 22 and Thursday, October 23, 2008 the Center of Excellence in Finance (CEF) and the PFS Program held a third annual Regional Workshop on Insurance Supervision at the CEF in Ljubljana, Slovenia. The title of the event was: Regional Workshop on Insurance Supervision: Financial Crime Utilizing the Insurance Industry and Insurance Products - Practical Experiences in the European Union (EU), South East Europe (SEE) and the United States of America (USA).
This event was a follow-up to Regional Workshops on the same topic organized by the CEF and the PFS Program in October 2007 and October 2006. Through this now ongoing regional initiative, both co-sponsors and all participating institutions aim to raise awareness about insurance fraud and share practical experiences through the presentation of case studies from a number of jurisdictions. Both the PFS Program and the CEF emphasize peer-based learning in their respective training programs.
At the outset of the Workshop, each of the participants introduced her/himself and provided information about her/his respective institution that was requested in a questionnaire distributed beforehand. 15 persons representing the following institutions participated in the Workshop: Insurance Agency of Bosnia and Herzegovina; Bulgarian Financial Supervision Commission; Lithuanian Insurance Supervision Commission; Office for Prevention of Money Laundering – Macedonia; Insurance Supervision Department, Ministry of Finance, Macedonia; Center for Combating Economic Crimes –Moldova; National Commission for Financial Market – Moldova; National Office for Prevention of Money Laundering – Romania; Romanian Insurance Supervisory Commission; National Bank of Serbia; and Office for Money Laundering Prevention, Ministry of Finance – Slovenia.
On the first day of the Workshop, three presentations were delivered and participants watched a short film about staged automobile accidents in the United States. Geoffrey Mazullo, Director, PFS Program, presented a case study about a company whose internal controls and corporate governance oversight collapsed, thereby allowing excessive and unauthorized executive compensation. Judge Dariusz Sielicki presented a Polish case study and extrapolated from it Polish social attitudes towards insurance fraud. Cindy Schmell, Insurance Fraud Bureau Chief, Iowa Insurance Division, presented several case studies from the United States, interwoven with practical strategies for the analysis, investigation and prosecution of insurance fraud. Unfortunately Ms. Schmell was unable to travel to Ljubljana; therefore, her presentation was delivered via Skype.
The second day of the Workshop was devoted largely to automobile insurance fraud. Boris Persak, Head, Investigation Department, Zavarovalnica Maribor d.d., delivered a case study and outlined investigate approaches to cross-border automobile insurance fraud committed by international organized crime groups. Harry Filon, Director, Insurance Bureau Vehicle Crime, The Netherlands, presented several cases of insurance fraud from the Netherlands, many of which include cross-border elements.
Like its predecessors, this third annual Regional Workshop was also successful, both conceptually and practically. During each session, speakers and participants engaged in discussions regarding the specific case(s) as well as strategies for investigating fraud. The Workshop achieved its stated objectives of: sharing practical information about real cases; and raising awareness about insurance fraud as well as the use of insurance products to launder money.
The PFS Program appreciates the contribution of speakers from The Netherlands, Poland, Slovenia and the US to this Workshop, part of an ongoing PFS Program regional initiative in the area of financial crime, insurance supervision and prevention of money laundering. The current mandate of the PFS Program is to engage financial sector institutions in SEE target countries in programs that help promote the identification of best practice and the adoption of international standards. Within this mandate, one important element of each PFS Program activity is the exchange of experience of the new member states of the EU with EU accession countries in SEE.
The Workshop materials may be found on this event’s subpage on the CEF website. To download the Workshop materials here from the PFS Program website, please click on the links below:
| Agenda - Regional Workshop - Insurance Supervision - CEF - PFS Program - October 22-23, 2008.pdf - 14 KB |
| Outline - Regional Workshop - Insurance Supervision - CEF - PFS Program - October 22-23, 2008.pdf - 232 KB |
| Questionnaire - Workshop on Insurance Supervision - October 22-23, 2008.pdf - 11 KB |
| Opening Presentation - CEF - October 22, 2008.pdf - 412 KB |
| Opening Presentation - PFS Program - October 22, 2008.pdf - 222 KB |
| Presentation - Session 1 - PFS Program - Case in Point - Regional Workshop on Insurance Supervision - October 22, 2008.pdf - 504 KB |
| Brief Bio - Geoffrey Mazullo - October 2008.pdf - 16 KB |
| Presentation - Session 2 - Poland - Regional Workshop on Insurance Supervision - October 22, 2008.pdf - 890 KB |
| Brief Bio - Judge Dariusz Sielicki - October 2008.pdf - 67 KB |
| Presentation - Sessions 3 and 4 - USA - Regional Workshop on Insurance Supervision - October 22, 2008.pdf - 2,270 KB |
| Brief Bio - Cindy Schmell - October 2008.pdf - 11 KB |
| Presentation - Session 5 - Slovenia - Regional Workshop on Insurance Supervision - October 23, 2008.pdf - 66 KB |
| Brief Bio - Boris Persak - October 2008.pdf - 11 KB |
| Presentation - Session 6 - The Netherlands - Regional Workshop on Insurance Supervision - October 23, 2008.pdf - 1,081 KB |
| Brief Bio - Harry Filon - October 2008.pdf - 19 KB |
| List of Participants - Regional Workshop on Insurance Supervision - October 22-23, 2008.pdf - 171 KB |
Thursday, October 16, 2008 - Saturday, October 18, 2008
11th International Symposium of the Association of Accountants and Auditors of the Federation of Bosnia and Herzegovina
Neum, Bosnia and Herzegovina
The 11th International Symposium of the Association of Accountants and Auditors of the Federation of Bosnia and Herzegovina took place in Neum, BiH on October 16-18, 2008. The Symposium was entitled, "Economic Reforms in Bosnia and Herzegovina and European Integration: Implication of the Stabilization and Association Agreement between EU and BiH."
On the first day of the Symposium, the Governor of the Central Bank of Bosnia and Herzegovina opened the plenary session with a presentation entitled, “Monetary Stability as a Function of Financial Stability.” Thereafter, accounting academics and practitioners from the Federation of Bosnia and Herzegovina, Republika Srpska, Croatia, Serbia, Slovenia and the United States reported on a wide range of recent developments in accounting and audit. Geoffrey Mazullo, Director, PFS Program, delivered a case study entitled “The Role of the Accounting and Audit Professions in Corporate Governance.”
On the second day of the Symposium, participants chose from presentations organized in four major topics: audit, business, finance and the public sector. Participants received continuing education credit for attending the Symposium.
To download the case study in English and in translation, please click on the links below:
Thursday, October 9, 2008
PFS Program’s 11th Regional Survey – Reporting on Corporate Social Responsibility (CSR) by the Largest Listed Companies in Eleven CEE Countries
Today, the Partners for Financial Stability (PFS) Program publishes its 11th semi-annual Survey of Reporting on Corporate Social Responsibility (CSR) by the Ten Largest Listed Companies (by market capitalization) in 11 Central and Eastern European (CEE) Countries. This edition of the survey was co-financed by DWS Investments (Deutsche Bank Group). PFS Program Assistant Magdalena Grabowska, PFS Program Intern Tomasz Pieczyk (Poland), PFS Program Intern Nikola Smolcic (Croatia) and PFS Program Research Assistant Igor Solodovnik conducted the survey from July 1 through September 30, 2008.
Companies in Czech Republic, Estonia, Latvia, Lithuania, Slovakia and Slovenia were surveyed for the 11th time; companies in Hungary and Poland were surveyed for the tenth time; and companies in Bulgaria, Croatia and Romania were surveyed for the ninth time. Moreover, a fifth analysis of peer companies (the ten largest listed companies by market capitalization) in Brazil, Russia, India and China (BRIC) as well as Ukraine allows for ongoing benchmarking with these emerging market peers.
PFS Program surveys analyze the annual reports and websites of the ten largest listed companies in the above-mentioned 11 CEE countries in order to document the current disclosure practices of this “blue-chip” peer group and identify best practice among the peer group. Whereas the universe of companies surveyed may change over time due to changes in a company’s market capitalization, the semi-annual surveys of reporting on CSR represent a snapshot of this peer group’s CSR disclosure practices on a given day twice a year. Furthermore, by analyzing disclosures in both annual reports and websites, the surveys track the timing of the publication of the annual report and the related yet separate issue of periodic disclosure, namely, how blue-chip companies keep their websites data-rich and up-to-date. The surveys enable companies to benchmark their disclosure practices against peers on a national, industry and regional basis.
This survey analyzes companies’ disclosures in English (in the English-language annual report and on the English-language company website) during the time period July 1 – September 15, 2008 on the following three topics: corporate governance, environmental policy and social policy. The record date for the disclosures is September 15, 2008.
This edition of the survey documents a higher level of online disclosure of corporate governance information, continuing the trend over the past five years. More information is also disclosed in the area of social policy, compared with the previous survey published in April 2008. Disclosure of information about environmental performance and environmental standards as well as energy and water use increased, albeit from still low levels; significant progress remains to be made by most companies in disclosing detailed environmental data.
Overall, companies in BRIC outperform CEE peers in terms of the availability of English-language websites and annual reports as well as specific disclosures in all three areas. For example, 80% of the BRIC companies surveyed disclose compliance with a corporate governance code in the annual report, compared with 54% in CEE. 65% of the BRIC companies surveyed disclose information about company-specific code of business conduct/code of ethics in the annual report, compared with 16% in CEE. In general, BRIC companies also provide more information on social policy and environmental policy. However, the gap in all three areas is narrowing. Due to the lack of a number of drivers, Ukrainian companies lag behind both BRIC and CEE peers in all areas. However, the number of Ukrainian companies with English-language annual reports and websites continues to increase as does the amount of information disclosed in all three categories.
Survey findings include the following:
- 96% of the 110 CEE companies surveyed have an English-language website on the record date of September 15, 2008, compared with 96% in April 2008, 94.5 % in September 2007, 94% in April 2007, 94% in September 2006, 87% in April 2006, 89% in September 2005 and 82% in April 2005. In comparison, 100% of the BRIC companies surveyed and 70% of the Ukrainian companies surveyed have an English-language website.
- 94% of the 110 CEE companies surveyed have a 2006/2007 English-language annual report online on the record date of September 15, 2008 compared with 100% in BRIC and 30% in Ukraine.
- 71% of the 110 CEE companies surveyed disclose information on employee development/benefits in their annual reports available online. This is a significant increase over the 64% recorded in the previous four surveys.
- Nine Polish, eight Slovene, eight Hungarian, six Estonian, five Czech, four Latvian, three Bulgarian companies, one Croatian, one Lithuanian and one Romanian company disclose information regarding compliance with a corporate governance code on the company website. Ten Estonian, nine Slovene, seven Polish, seven Czech, seven Lithuanian, six Slovak, five Bulgarian, four Hungarian, three Croatian and two Romanian companies disclose this information in the annual report. This is the first time since the survey was first conducted that more than 50% of the CEE companies surveyed disclose information regarding compliance with a corporate governance code in the annual report.
- 36% of the 110 CEE companies surveyed disclose information on listed health and safety policy on their website as of September 15, 2008, compared with 32% in April 2008, 30% in September 2007, 26% in April 2007, 21% in September 2006 and 12% in April 2006.
- 34% of the 110 CEE companies surveyed disclose information on environmental performance in annual reports available on their website on September 15, 2008 compared with 30% in April 2008, 33% in September 2007, 13% in April 2007, 25% in September 2006 and 18% in April 2006, 22% in September 2005, 24% in April 2005 and 27% in August 2004.
- 28 of the 110 CEE companies surveyed (26%) publish a stand-alone English-language ESG report as of September 15, 2008. (This represents the same percentage as in the most recent survey, conducted in April 2008.) Of the 28 reports published in CEE on the current record day, 25 (89%) use recognized standards and eight (28%) include a third-party assurance statement. A list of companies that publish a stand-alone environmental, social and governance (ESG) report online in English may be found as a separate document below.
- 17 of the 40 BRIC companies surveyed (42.5%) publish a stand-alone English-language ESG report. Of the 17 reports published in BRIC, 15 (88%) use recognized standards and ten (59%) provide a third-party assurance. No Ukrainian company produces such a report as of the record date of September 15, 2008.
Note: The survey consists of the three following documents: a report of the survey findings presenting data aggregated by country; a database of individual data by company for the ten largest listed companies in each of the 11 CEE countries; and a separate database of individual data by company for the ten largest listed companies in BRIC and Ukraine.
To download the survey, the database and a separate list of companies that publish an English-language stand-alone ESG report, please click on the links below:
Monday, September 22, 2008 - Friday, September 26, 2008
Regional Workshop on Internal Audit of Central Banks and Financial Sector Regulatory Authorities (FSRAs)
Philadelphia, Pennsylvania, United States of America
From Monday, September 22 to Friday, September 26, 2008 the Federal Reserve Bank of Philadelphia and the Partners for Financial Stability (PFS) Program organized a Regional Workshop on Internal Audit of Central Banks and Financial Sector Regulatory Authorities (FSRAs). The Regional Workshop brought together internal audit professionals from central banks and FSRAs in Albania, Armenia, Azerbaijan, Bosnia and Herzegovina, Croatia, Kosovo, Lithuania, Montenegro, Poland, Serbia and the United States to discuss practical approaches to internal audit.
The Regional Workshop, a joint undertaking of the Federal Reserve Bank of Philadelphia and the PFS Program, is part of an ongoing PFS Program regional initiative designed to strengthen the internal audit capacity of central banks and FSRAs across Central and Eastern Europe (CEE), South East Europe (SEE) and the Newly Independent States (NIS) of the Former Soviet Union.
Following its participation in two regional events organized in SEE in 2007 and 2006, the Federal Reserve Bank of Philadelphia proposed to the PFS Program that a Regional Workshop be held in Philadelphia in autumn 2008.
Internal audit has become increasingly important for financial sector institutions, both private and public, within the context of ongoing globalization of financial markets, development of increasingly sophisticated financial instruments and information technological (IT) advancements enabling the instantaneous transfer of funds worldwide. High profile corporate scandals and shortcomings at a number of FSRAs around the world have led to more stringent regulatory regimes in a wide range of areas including: compliance, conflict of interest, corporate governance, disclosure, energy efficiency, fraud, IT, internal control, procurement, risk management, transparency and XBRL (extensible business reporting language).
The Regional Workshop presented a unique opportunity for internal audit professionals to exchange practical information and discuss case studies about these issues with colleagues/peers from CEE, SEE, the NIS and the United States. The week-long program was interdisciplinary, including presentations as well as tailor-made case studies. Speakers included experts from the Federal Reserve Bank of Philadelphia, other institutions of the Federal Reserve system, other US government agencies and the private sector.
The Federal Reserve Bank of Philadelphia is registered with the National Association of State Boards of Accountancy as a sponsor of continuing professional education (CPE); therefore, participants may receive CPE credit for their participation in the Regional Workshop.
To download the agenda, presentations and list of participants, please click on the links below:
| Agenda - Regional Workshop on Internal Audit - September 22-26, 2008.pdf - 2,457 KB |
| Opening Presentation - PFS Program - September 22, 2008.pdf - 222 KB |
| Overview - September 22, 2008.pdf - 132 KB |
| Session 1 - September 22, 2008.pdf - 336 KB |
| Session 2 - September 22, 2008.pdf - 435 KB |
| Session 3 - September 23, 2008.pdf - 95 KB |
| Session 4 - September 23, 2008.pdf - 166 KB |
| Session 6 - September 23, 2008.pdf - 1,568 KB |
| Session 8 - September. 24, 2008.pdf - 67 KB |
| Session 9 - September. 24, 2008.pdf - 940 KB |
| Session 11 - September 25, 2008.pdf - 171 KB |
| Session 13 - September 25, 2008.pdf - 516 KB |
| Session 14 - September 25, 2008.pdf - 940 KB |
| Session 15 - September 26, 2008.pdf - 470 KB |
| Session 16 - September 26, 2008.pdf - 56 KB |
| List of Participants - Regional Workshop on Internal Audit - September 22-26,2008.xls - 24 KB |
Thursday, September 18, 2008
Updated Database of Socially Responsible Investment (SRI) Funds
From June through August 2008, PFS Program Assistant Magdalena Grabowska compiled the PFS Program’s updated Database of Socially Responsible Investment (SRI) Funds. PFS Program Intern Nikola Smolcic (Croatia) assisted with this project in July 2008.
This is the second time the PFS Program has compiled a database of SRI funds. This updated database includes information about 574 SRI funds, current as of the end of August 2008. It updates and expands the first Database of SRI Funds published by the PFS Program in February 2005. The first database included information about 478 SRI funds.
The database includes information obtained from public sources online. It is meant to complement databases compiled and research conducted by other institutions. For example, Eurosif publishes a European SRI study; the most recent edition will be published on October 1, 2008. Avanzi SRI Research and SiRi Company conduct an annual survey entitled, “Green, Social and Ethical Funds in Europe.” These publications, as well as information distributed by Principles for Responsible Investment (PRI) and other institutions, document a significant increase in the number of SRI funds launched during the past two years. Also, the assets under management in SRI funds has grown considerably during the same time period.
To download the database, please click on the link below:
Friday, September 12, 2008
Investor Relations Seminar
Brasov, Romania
On Friday, September 12, 2008 the Bucharest Stock Exchange – Corporate Governance Institute organized an Investor Relations Seminar in Brasov, Romania. This seminar represented the most recent joint activity of the Bucharest Stock Exchange / Bucharest Stock Exchange – Corporate Governance Institute and the PFS Program, following a number of events held since 2004 in Bucharest.
25 persons participated in the seminar, representing companies listed on the Bucharest Stock Exchange and Romanian capital market institutions.
The seminar is part of an ongoing and multi-faceted PFS Program regional initiative dedicated towards promoting the implementation of international standards and identifying best practice in investor relations across Central and Eastern Europe as well as South East Europe.
This was the 15th investor relations seminar organized or jointly organized by the PFS Program and its partners since 2001, attracting a total of 746 participants. (Materials from each of the seminars may be found on the Capital Markets Seminars page of the PFS Program website.)
To download the seminar agenda and presentations, please click on the links below:
Thursday, September 11, 2008 - Friday, September 19, 2008
19th Warsaw Actuarial Summer School
Warsaw, Poland
From September 11- 19, 2008 the 19th Warsaw Actuarial Summer School (WASS) took place in Warsaw, Poland. WASS is a joint venture of the Faculty of Economic Sciences, University of Warsaw and the Polish Society of Actuaries. This year’s WASS was the 19th edition of the Summer School, which since 2003 has focused on continuing education of actuaries who have already completed basic academic training in actuarial science. The program included three lectures: the role of enterprise risk management (ERM), stochastic claims reserving and variable annuities.
The PFS Program financed the tuition of two actuaries from the Albanian Financial Supervisory Authority and an actuary from the Insurance Agency of Republika Sprska, Bosnia and Herzegovina.
Tuesday, September 9, 2008
PFS Program’s 15th Regional Survey - Investor Relations Online: Survey of Websites of the Largest Listed Companies in Eleven CEE Countries
Today, the PFS Program publishes its 15th semi-annual Survey of Online Investor Relations of the Ten Largest Listed Companies (by market capitalization) in eleven Central and Eastern European (CEE) countries.” PFS Program Assistant Magdalena Grabowska and PFS Program Intern Nikola Smolcic (Croatia) conducted the survey from July 1 through August 31, 2008.
In this edition of the survey, disclosure of detailed govenance information in almost all categories remains at or reaches its highest level since the first survey was conducted in August 2001. This trend has been observed since February 2006 and may be viewed as sustainable.
91% of the companies surveyed provide a list of board members online, compared with 87% in February 2008, 82% in August 2007 and 81% in February 2007 as well as August 2006. This is the largest percentage recorded since the first survey and the first time that more than 90% of the companies surveyed provide a list of board members online. 61% of the companies surveyed provide additional information about board members online. This is also the largest percentage recorded since the first survey and the first time that more than 60% of the companies surveyed provide this information online. It represents a significant increase over the most recent survey (52% in August 2007) and previous surveys (51% in August 2007 and 40% in February 2007).
Investor Relations Online: Survey of Websites of the Largest Listed Companies in CEE analyzes the websites of the ten largest listed companies in Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovak Republic and Slovenia. For the fifth time, the survey also analyzes companies in BRIC (Brazil, Russia, India and China) as well as Ukraine in order to compare the online disclosure practices of CEE listed companies with peers in other emerging markets.
The survey analyzes the English-language websites and annual reports of the ten largest listed companies in the above-mentioned CEE countries in order to document the current disclosure practices of this ‘blue-chip’ peer group. Although the market capitalization of companies changes over time, the semi-annual surveys represent a snapshot of disclosure practices of the blue-chip peer group on a given day twice a year. Since the definition of the survey universe has remained the same since the first survey, the surveys provide time-series data for CEE blue-chip companies and thus enable the identification of online disclosure trends as well as best practice within the peer group.
The survey provides current data as of August 15, 2008 and comparisons with the 14 previous surveys, conducted in February 2008, August 2007, February 2007, August 2006, February 2006, August 2005, February 2005, August 2004, February 2004, August 2003, February 2003, August 2002, February 2002 and August 2001.
Survey results include the following:
Websites: In ten of the 11 CEE countries surveyed, each of the ten largest listed companies has a local-language website. In Czech Republic eight of the ten companies surveyed have a local-language website. Each of the ten companies surveyed in Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia has an English-language website. 80% of the companies surveyed in Croatia and 70% in Romania have an English-language website.
Information on Management: 88% of the companies surveyed provide a list of management online; 64.5% provide additional information on management. Disclosure in the former category decreased slightly (2%) since the last survey whereas the latter represents a record high since the first survey was conducted and a slight increase vis-à-vis February 2008 (63%) and August 2007 (59%).
Information on Board Members: 91% of the companies surveyed provide a list of board members online and 61% provide additional information on board members. Each category increased to a higher new record since the first survey was conducted and to new thresholds above 90% and 60% respectively. Disclosure in the latter category represents a significant increase from 52% in February 2008, 51% in August 2007, 40% in February 2007, 36% in August 2006 and 41% in February 2006.
Best Practice: Since 2004, the survey includes recommendations on the ideal corporate website and compares CEE companies with the parameters of this ideal. This component of the survey identifies best practice and enables CEE companies to benchmark their disclosure against peers in the region, other emerging markets and industry best practice. Here also, the time-series data identifies online disclosure trends.
On August 15, 2008 56 of the 110 companies surveyed in CEE (51%) disclose information in all of the categories analyzed in the basic PFS Program survey: local-language website; English-language website; list of management; list of board members; additional information on management; and additional information on board members. This is the first survey in which over 50% of the companies surveyed provide all of the basic information analyzed. On February 15, 2008 51 of the 110 companies surveyed in CEE (46%) disclosed information in all of the basic categories analyzed in the survey. On August 15, 2007 47 of the 110 CEE companies surveyed (43%) disclosed information in all of the basic categories analyzed in the survey. Therefore, over the past year a slight improvement has been documented in each edition of the survey.
Comparisons with BRIC and Ukraine: The largest listed companies in BRIC equal or outperform their CEE peers in every category. However, the gap continues to narrow. Furthermore, when companies in BRIC are compared with peers in the eight CEE countries that joined the EU in 2004, the difference between the peer groups is much smaller. The Ukrainian companies surveyed disclose less information than their peers in both BRIC and CEE; however, improvements are discernible over time. Detailed comparisons include the following:
- Each of the companies surveyed in BRIC has a local language website. In ten of the 11 CEE countries surveyed, each of the companies surveyed has a local language website. In Czech Republic, eight of the ten companies surveyed have a local language website. In Ukraine, nine of the ten companies surveyed have a local language website.
- In BRIC, all of the companies surveyed have an English website, compared with 95.5% in CEE-11, 100% in the eight CEE countries that joined the EU in 2004 and 70% in Ukraine.
- 97.5% of the companies surveyed in BRIC provide a list of management online, compared with 88% in the CEE-11 and 91% in the eight CEE countries that joined the EU in 2004. In Ukraine 40% of the companies surveyed provide a list of management online.
- 87.5% of the companies surveyed in BRIC provide additional information on management online, compared with 64.5% in the CEE-11, 70% in the eight CEE countries that joined the EU in 2004 and 50% in Ukraine.
- All of the companies surveyed in BRIC provide a list of board members online, compared with 91% in the CEE-11, 97.5% in the eight CEE countries that joined the EU in 2004 and 30% in Ukraine.
- 95% of the companies surveyed in BRIC provide additional information on board members online, compared with 61% in CEE-11, 70% in the eight CEE countries that joined the EU in 2004 and 10% in Ukraine.
The survey contains information compiled in the following groups and sub-groups:
- Current data on 110 companies in eleven CEE countries;
- Separate data on 80 companies in eight CEE countries that joined the European Union (EU) on May 1, 2004;
- Separate data on 30 companies in Bulgaria, Croatia and Romania;
- Comparisons of the data from this current survey with data from the previous 14 conducted every August and February since August 2001; and
- Separate data on 40 companies in Brazil, Russia, India and China (BRIC) as well as 10 companies in Ukraine.
To download the survey, a presentation of survey results and the company database, please click on the links below:
Friday, August 1, 2008
Updated Database of Contacts in the Field of Socially Responsible Investment (SRI) – July 2008
From mid-January until mid-July 2008, PFS Program Assistant Magdalena Grabowska updated the PFS Program’s Database of Contacts in the Field of Socially Responsible Investment (SRI).
The initial database was published on this page of the PFS Program website on October 25, 2002. It contained contact information about more than 275 organizations whose SRI activities were reported online and/or in the financial press. The initial database divided the organizations among eight categories.
Since then, the database has been updated five times. A second edition of the database was published on February 16, 2005; it contained 726 organizations divided among ten categories. A third edition of the database was published on October 7, 2005; it contained 709 organizations divided among ten categories. A fourth edition of the database was published on July 27, 2007; it contained 793 organizations divided among ten categories. A fifth edition of the database was published on December 17, 2007; it contained 799 organizations divided among ten categories.
This sixth edition of the database, with current information as of July 31, 2008, contains 854 organizations divided among the following 11 categories: Academia (35 institutions); Awards (3); Companies/Listed Companies (245); Conferences (65); Financial Institutions (127); Governmental Organizations (49); Indices (27); Media (52); Non-Governmental Organizations (177); Professional Associations (33); and Rating/Research (41). It includes institutions from 49 countries in Africa, Asia, Australia, Europe, North America and South America.
This most recent edition of the database includes for the first time a new category entitled Awards. As noted in the fifth edition of the database published in December 2007, the number of conferences on SRI topics, the number of organizations providing SRI rating/research services and the number of professional associations addressing SRI issues increased significantly during the second half of 2007. All three trends continued during the first half of 2008.
In addition to the institutions which were already recognized SRI leaders in 2002, the current edition of the database includes 55 new organizations, some of which are recently-established and others which have become known to the PFS Program over the past six months. The current edition includes all PFS Program partners engaged in corporate governance, corporate social responsibility (CSR) and/or SRI initiatives as well those organizations included in the PFS Program’s distribution list. To download the database, please click on the link below:
Friday, June 20, 2008
Regional Seminar: Issuers & Market Integrity
Bucharest, Romania
On Friday, June 20, 2008 the Bucharest Stock Exchange – Corporate Governance Institute and the PFS Program organized a Regional Seminar on Issuers & Market Integrity. This was the fourth annual corporate governance conference organized by the Bucharest Stock Exchange and the third year in which the Bucharest Stock Exchange – Corporate Governance Institute and the PFS Program co-organized the event, following seminars organized in June 2007 as well as June 2006.
During the seminar, representatives of the Government Representatives for the Austrian Capital Market, the Belgrade Stock Exchange, the Istanbul Stock Exchange and Limestone Investment Management informed the audience about recent developments and trends in their respective markets. The PFS Program presented a case study regarding a corporate governance scandal in Sweden that is yet widely discussed in SEE. The insights of the foreign speakers on best practice and international standards in corporate governance as well as financial and non-financial reporting were complemented by presentations of representatives of Azomures, Bucharest Stock Exchange, CFA Romania, IFB Finwest and Petrom about the current situation in Romania.
This seminar is part of an ongoing and multi-faceted PFS Program regional initiative dedicated towards strengthening corporate governance and improving the quality of financial and non-financial reporting across Central and Eastern Europe as well as South East Europe.
To download the seminar agenda, presentations and a press release issued after the seminar, please click on the links below:
| Agenda - Seminar - Issuers and Market Integrity - June 20, 2008.pdf - 86 KB |
| Presentation - Bucharest Stock Exchange - Regional Seminar - June 20, 2008.pdf - 31 KB |
| Presentation - BMF - Federal Ministry of Finance - Regional Seminar - June 20, 2008.pdf - 73 KB |
| Presentation - Belgrade Stock Exchange - Regional Seminar - June 20, 2008.pdf - 682 KB |
| Presentation - CFA - Regional Seminar - June 20, 2008.pdf - 294 KB |
| Presentation - PFS Program - Regional Seminar - June 20, 2008.pdf - 385 KB |
| Presentation - Limestone Investment Management - Regional Seminar - June 20, 2008.pdf - 467 KB |
| Presentation - AZOMURES - Regional Seminar - June 20, 2008.pdf - 39 KB |
| Presentation - Istanbul Stock Exchange - Regional Seminar - June 20, 2008.pdf - 284 KB |
| Presentation - Bucharest Stock Exchange - Corporate Governance Institute - Regional Seminar - June 20, 2008.pdf - 101 KB |
| Press Release - Regional Seminar - Issuers & Market Integrity - June 20, 2008.pdf - 39 KB |
Thursday, June 5, 2008
Investor Relations Seminar
Sarajevo, Bosnia and Herzegovina
On Thursday, June 5, 2008 the Banja Luka Stock Exchange, the Sarajevo Stock Exchange (SASE), the Securities Commission of the Federation of Bosnia and Herzegovina and the PFS Program organized an Investor Relations Seminar.
This regional seminar, held in Sarajevo, marked the PFS Program’s first activity in Bosnia and Herzegovina and its 107th regional event since the PFS Program was launched in late 1999.
During the seminar, representatives of BRE Bank SA, GES Investment Services, Limestone Investment Management, and XBRL Polska addressed an audience in Bosnia and Herzegovina for the first time. Each presentation contained a wealth of practical information as well as useful guidance regarding best practice and international standards in financial reporting, extra-financial reporting and investor relations.
The insights of the foreign practitioners were complemented by presentations of representatives of the Banja Luka Stock Exchange, the Sarajevo Stock Exchange (SASE), and the Securities Commission of the Federation of Bosnia and Herzegovina about the current situation in Bosnia and Herzegovina. The PFS Program presented data from its two semi-annual surveys: Investor Relations Online and Reporting on Corporate Social Responsibility (CSR) by the largest listed companies in 11 Central and Eastern European (CEE) countries; Brazil, Russia, India and China (BRIC); and Ukraine. It also presented several case studies regarding best practice in investor relations, from CEE listed companies as well as global companies recognized for their investor relations programs.
A total of 45 persons (speakers, participants and organizers) participated in the seminar. The participant breakdown was as follows: Bosnia and Herzegovina – 38 participants representing listed companies on Banja Luka Stock Exchange, listed companies on the Sarajevo Stock Exchange, the Banja Luka Stock Exchange, the Sarajevo Stock Exchange, the Securities Commission of the Federation of Bosnia and Herzegovina and USAID Bosnia and Herzegovina; and Poland – one participant representing an investment research company.
The PFS Program greatly appreciates the contribution of speakers from Bosnia and Herzegovina, Estonia, Poland, Sweden and the US to this seminar, part of an ongoing PFS Program regional initiative in the area of investor relations. The current mandate of the PFS Program is to engage financial sector institutions in South East European (SEE) target countries in programs that help promote the identification of best practice and the adoption of international standards. Within this mandate, one important element of each PFS Program activity is the exchange of experience of the new member states of the European Union (EU) with EU accession countries in SEE.
This seminar is part of an ongoing and multi-faceted PFS Program regional initiative dedicated towards improving the quality of financial and extra-financial reporting across CEE as well as SEE.
This was the 14th investor relations seminar organized by the PFS Program since 2001, attracting a total of 721 participants. (Materials from each of the seminars may be found on the capital markets seminars page of the PFS Program website.)
To download the seminar agenda, presentations, speaker biographies and list of participants, please click on the links below. The PFS Program would like to thank the Banja Luka Stock Exchange for translating the presentations of the Estonian, Swedish and Polish experts into local language.
| Agenda - Investor Relations Seminar - June 5, 2008.pdf - 116 KB |
| Opening Presentation - PFS Program - June 5, 2008.pdf - 675 KB |
| Presentation - PFS Program - IR - IR Seminar - June 5, 2008.pdf - 993 KB |
| Brief Bio - Geoffrey Mazullo - June 2008.pdf - 16 KB |
| Presentation - Limestone Investment Management - IR Seminar - June 5, 2008.pdf - 472 KB |
| Presentation - Limestone Investment Management - IR Seminar - June 5, 2008 - BiH.pdf - 598 KB |
| Brief Bio - Veronika Juchnewitsch - June 2008.pdf - 10 KB |
| Presentation - GES Investment Services - IR Seminar - June 5, 2008.pdf - 888 KB |
| Presentation - GES Investment Services - IR Seminar - June 5, 2008 - BiH.pdf - 1,102 KB |
| Brief Bio - Magnus Furugard - June 2008.pdf - 10 KB |
| Presentation - PFS Program - IR in CEE - IR Seminar - June 5, 2008.pdf - 2,993 KB |
| Presentation - BRE Bank - IR Seminar - June 5, 2008.pdf - 1,518 KB |
| Presentation - BRE Bank - IR Seminar - June 5, 2008 - BiH.pdf - 276 KB |
| Brief Bio - Agnieszka Solarz-Jedrych - June 2008.pdf - 114 KB |
| Presentation - XBRL Polska - IR Seminar - June 5, 2008.pdf - 951 KB |
| Presentation - XBRL Polska - IR Seminar - June 5, 2008 - BiH.pdf - 1,019 KB |
| Brief Bio - Mateusz Hojda - June 2008.pdf - 62 KB |
| List of Participants - Investor Relations Seminar - June 5 2008.pdf - 115 KB |
Thursday, May 8, 2008
PFS Program’s tenth Regional Survey – Reporting on Corporate Social Responsibility (CSR) by the Largest Listed Companies in Eleven CEE Countries
Today, the Partners for Financial Stability (PFS) Program publishes its tenth semi-annual Survey of Reporting on Corporate Social Responsibility (CSR) by the Ten Largest Listed Companies (by market capitalization) in 11 Central and Eastern European (CEE) Countries. This edition of the survey was co-financed by DWS Investments (Deutsche Bank Group). PFS Program Intern Dominik Grodzki (Poland), PFS Program Assistant Magdalena Grabowska and PFS Program Research Assistant Igor Solodovnik conducted the survey from March 1 through April 30, 2008.
Companies in Czech Republic, Estonia, Latvia, Lithuania, Slovakia and Slovenia were surveyed for the tenth time; companies in Hungary and Poland were surveyed for the ninth time; and companies in Bulgaria, Croatia and Romania were surveyed for the eighth time. Moreover, a fourth analysis of peer companies (the ten largest listed companies by market capitalization) in Brazil, Russia, India and China (BRIC) as well as Ukraine allows for ongoing benchmarking with these emerging market peers.
PFS Program surveys analyze the annual reports and websites of the ten largest listed companies in the above-mentioned 11 CEE countries in order to document the current disclosure practices of this “blue-chip” peer group and identify best practice among the peer group. Whereas the universe of companies surveyed may change over time due to changes in a company’s market capitalization, the semi-annual surveys of reporting on CSR represent a snapshot of this peer group’s CSR disclosure practices on a given day twice a year. Furthermore, by analyzing disclosures in both annual reports and websites, the surveys track the timing of the publication of the annual report and the related yet separate issue of periodic disclosure, namely, how blue-chip companies keep their websites data-rich and up-to-date. The surveys enable companies to benchmark their disclosure practices against peers on a national, industry and regional basis.
This survey analyzes companies’ disclosures in English (in the English-language annual report and on the English-language company website) during the time period March – April 2008 on the following three topics: corporate governance, environmental policy and social policy. The record date for the disclosures is April 15, 2008.
This edition of the survey documents a generally higher level of online disclosure of corporate governance information, continuing the trend over the past five years. Slightly more information is also disclosed in the area of social policy, compared with the previous survey published in September 2007. Disclosure of information about environmental policy has increased on company websites; however, significant progress remains to be made in disclosing information on environmental policy in the annual report.
Overall, companies in BRIC outperform CEE peers in terms of the availability of English-language websites and annual reports as well as specific disclosures in all three areas. In the field of corporate governance, the most significant difference concerns disclosure of information regarding compliance with a corporate governance code and a company-specific code of business conduct/code of ethics in both the website and annual report. In general, BRIC companies also provide more information on social policy and environmental policy. Due to the lack of a number of drivers, Ukrainian companies lag behind both BRIC and CEE peers in all areas. However, the number of Ukrainian companies with English-language websites has increased steadily over the past two years.
29 of the 110 CEE companies surveyed (26%) provide a stand-alone environmental, social and governance (ESG) report online in English on the record date of April 15, 2008. This represents a significant improvement over the most recent survey and continuation of an ongoing trend: 22 of the companies surveyed (20%) published such a report in September 2007, compared with 19 companies (17%) in April 2007 and 17 companies (15%) in September 2006. A list of companies that publish a stand-alone environmental, social and governance (ESG) report online in English may be found as a separate document below.
Survey findings include the following:
• 96% of the 110 CEE companies surveyed have an English-language website on the record date of April 15, 2008, compared with 94.5 % in September 2007, 94% in April 2007, 94% in September 2006, 87% in April 2006, 89% in September 2005 and 82% in April 2005. In comparison, 100% of the BRIC companies surveyed and 70% of the Ukrainian companies surveyed have an English-language website.
• 87% of the 110 CEE companies surveyed have a 2006/2007 English-language annual report online on the record date of April 15, 2008 compared with 100% in BRIC and 30% in Ukraine.
• Nine Slovene, eight Polish, eight Hungarian, seven Estonian, four Bulgarian, four Czech, four Latvian companies, one Croatian, one Lithuanian and one Romanian company disclose information regarding compliance with a corporate governance code on the company website. Nine Slovene, eight Estonian, seven Polish, six Czech, six Lithuanian, four Croatian, four Hungarian, three Bulgarian, three Slovak, two Romanian and one Latvian company disclose this information in the annual report.
• 64% of the 110 CEE companies surveyed disclose information on employee development/benefits on their website. This result has remained constant at 64% for the past four surveys.
• 24% of the 110 CEE companies surveyed disclose information on energy and water use on their website, compared with 17% in September 2007, 17% in April 2007, 21% in September 2006, 18% in April 2006, 20% in September 2005, 20% in April 2005 and 23% in August 2004.
• 29 of the 110 CEE companies surveyed (26%) publish a stand-alone English-language ESG report as of April 15, 2008. Of the 29 reports published in CEE, 27 (93%) use recognized standards and eight (28%) include a third-party assurance statement.
• 17 of the 40 BRIC companies surveyed (42.5%) publish a stand-alone English-language ESG report. Of the 17 reports published in BRIC, 14 (82%) use recognized standards and ten (59%) provide a third-party assurance. No Ukrainian company produces such a report as of the record date of April 15, 2008.
Note: The survey consists of the three following documents: a report of the survey findings presenting data aggregated by country; a database of individual data by company for the ten largest listed companies in each of the 11 CEE countries; and a separate database of individual data by company for the ten largest listed companies in BRIC and Ukraine. This edition of the survey includes a newly-designed and more user-friendly database which lists the companies surveyd in the first spreadsheet, entitled, „Table of Contents (LOC).”
To download the survey, the database and a separate list of companies that publish an English-language stand-alone ESG report, please click on the links below:
Thursday, April 24, 2008
Opening of the East-West Management Institute (EWMI) Representative Office in Poland
On Thursday, April 24, 2008 the East-West Management Institute (EWMI) Representative Office in Poland was opened.
The office will implement the Partners for Financial Stability (PFS) Program, in cooperation with counterparts across SEE and CEE.
As of October 1, 2007 USAID’s priorities for the PFS Program in SEE are: Albania, Bosnia and Herzegovina, Kosovo, Macedonia, Montenegro and Serbia.
Saturday, April 19, 2008 - Sunday, June 8, 2008
NAIC Spring 2008 International Internship Program
United States
A senior expert associate of the on-site insurance supervision department of the National Bank of Serbia participated in the spring 2008 international internship program organized by the National Association of Insurance Commissioners (NAIC) from April 19 through June 8, 2008.
Following a one-week introductory training program in Kansas City, MO the intern undertook a one-month internship with the Washington State Office of the Insurance Commissioner. Thereafter, the intern participated in the NAIC National Meeting in San Francisco, CA. At the end of the internship program, the intern participated in close-out activities in Washington, DC organized by the NAIC’s internship coordinator. Detailed information about the NAIC International Internship Program may be found on the International Relations page of the NAIC website.
The PFS Program emphasizes peer-assisted learning as an effective professional development mechanism. This internship program provided an excellent opportunity for the on-site supervision associate of the National Bank of Serbia to expand her knowledge base and skills. Each of the participating institutions contributed towards the cost of this program.
Friday, April 11, 2008 - Sunday, April 13, 2008
Lectures on Corporate Governance
Gdansk, Poland
From April 11-13, 2008 Geoffrey Mazullo, Director, PFS Program gave a series of lectures on corporate governance as part of the School of American Law organized by the Faculty of Law and Administration of the University of Gdansk.
In the first lecture, Mr. Mazullo reviewed information presented during the first set of lectures delivered in January 2008, including: analysis of various models of corporate governance; explanation of the rights/responsibilities of corporate organs; and specific examples of corporate governance in practice, demonstrated by company-specific case studies. He then presented the most recent research conducted and co-financed by the PFS Program on reporting on corporate governance and corporate social responsibility (CSR) by listed companies in 11 Central and Eastern European (CEE) countries; Brazil, Russia, India and China (BRIC); and Ukraine. Each of the remaining lectures consisted of a case study regarding a particular corporate governance or CSR issue. The case studies discussed concern companies listed and/or operating in Cambodia, China, the Netherlands, Germany, Poland, the United Kingdom and the United States. Mr. Mazullo presented for the second time a case study written by PFS Program colleagues about the ongoing corruption scandal at the German industrial conglomerate Siemens AG. The case study is a work in progress; it will be revised and updated as details regarding this case unfold.
Through an agreement with the School of American Law, students who attend the lectures and complete the School of American Law may apply for an internship with the PFS Program. The School of American Law finances part of the costs of the internship, namely travel and accommodation costs of the student/intern. Between summer 2004 and April 2008, 18 graduates of the School of American Law completed a PFS Program internship.
During the one-month unpaid internship, the intern conducts one of the PFS Program’s ongoing semi-annual regional surveys: Investor Relations Online: Survey of Websites of the Largest Listed Companies in 11 Central and Eastern European (CEE) Countries or Survey of Reporting on CSR by the Largest Listed Companies in 11 CEE Countries. In summer 2008, Polish interns will be paired with interns from South East Europe, thereby enhancing both the internship experience and the quality of the PFS Program surveys.
To download the materials presented at the lectures, please click on the links below:
Wednesday, March 12, 2008 - Thursday, March 13, 2008
Regional Workshop on Corporate Governance of Insurance Companies
Tirana, Albania
On Wednesday, March 12 and Thursday, March 13, 2008 the Albanian Financial Supervisory Authority (AFSA) and the PFS Program held a Regional Workshop on Corporate Governance of Insurance Companies.
This Regional Workshop, held in Tirana, marked the PFS Program’s first activity in Albania and its 105th regional event since the PFS Program was launched in late 1999.
The AFSA invited the PFS Program to co-organize this Regional Workshop in order to promote the implementation of best practice and adoption of international standards of corporate governance in the Albanian insurance market. A primary goal of the Workshop was to educate Albanian insurance regulators and senior decision-makers of Albanian insurance companies about corporate governance of insurance companies in new member states of the European Union. The practical information presented, debated and discussed at the Regional Workshop provided reference points and benchmarks for comparison with developments in Albania. The PFS Program emphasizes case study and peer based learning in all its training programs.
At the outset of the Workshop, Keler Gjika, Deputy Chair, AFSA, presented an overview of the Albanian insurance market and the current framework for corporate governance of insurance companies in Albania. Thereafter, Gorazd Podbevsek, Socius, outlined the framework for corporate governance of insurance companies in Slovenia. Boris Persak, Zavarovalnica Maribor d.d. presented two case studies of insurance fraud and their governance implications. The PFS Program presented a case of a Swedish insurer whose corporate governance system collapsed, thereby allowing excessive and unauthorized executive compensation. At the end of the first day of the Workshop, Audrius Linartas, Insurance Supervisory Commission of Lithuania, described the framework for corporate governance of insurance companies in Lithuania.
On the second day of the Workshop, Anna Miernicka-Szulc described the framework for corporate governance of insurance companies in Poland. Pawel Dudzicz, Polish Financial Supervision Authority, shared two case studies regarding regulating and supervising the activities of Polish insurance companies. Jim Vint, FTI Technology Consulting, ended the Workshop with a presentation about data governance and a case study about the consequences of an insurance company’s poor data governance.
The participant profile was as follows: 45 Albanian participants, including 22 staff members of the AFSA; four representatives of donors and international financial sector firms active in Albania; a representative of the Insurance Agency of Bosnia and Herzegovina; and two representatives of the Central Banking Authority of Kosovo.
The PFS Program appreciates the contribution of speakers from Albania, Lithuania, Poland, Slovenia and the US to this Workshop, part of an ongoing PFS Program regional initiative in the area of insurance supervision. The current mandate of the PFS Program is to engage financial sector institutions in SEE target countries in programs that help promote the identification of best practice and the adoption of international standards. Within this mandate, one important element of each PFS Program activity is the exchange of experience of the new member states of the EU with EU accession countries in SEE.
To download the Workshop agenda, a brief biography of each speaker, the presentations and the list of participants, please click on the links below:
| Agenda - Regional Workshop on CG of Insurance Companies - March 12-13, 2008.pdf - 34 KB |
| Opening Presentation - PFS Program - March 12, 2008.pdf - 396 KB |
| Presentation - AFSA - March 12, 2008.pdf - 252 KB |
| Brief Bio - Keler Gijka - March 2008.pdf - 10 KB |
| Presentation - Slovenia - Socius - March 12, 2008.pdf - 88 KB |
| Brief Bio - Gorazd Podbevsek - March 2008.pdf - 11 KB |
| Presentation - Slovenia - ZM dd - March 12, 2008.pdf - 54 KB |
| Brief Bio - Boris Persak - March 2008.pdf - 11 KB |
| Presentation - PFS Program - Case in Point - March 12, 2008.pdf - 419 KB |
| Brief Bio - Geoffrey Mazullo - March 2008.pdf - 16 KB |
| Presentation - Lithuania - Insurance Supervisory Commission - March 12, 2008.pdf - 172 KB |
| Brief Bio - Audrius Linartas - March 2008.pdf - 11 KB |
| Presentation - Corporate Governance of Polish IC - March 12, 2008.pdf - 280 KB |
| Background Paper - Corporate Governance of Polish Insurance Companies - March 2008.pdf - 60 KB |
| Brief Bio - Anna Miernicka-Szulc - March 2008.pdf - 11 KB |
| Presentation - PFSA - March 13, 2008.pdf - 361 KB |
| Brief Bio - Pawel Dudzicz - March 2008.pdf - 98 KB |
| Presentation - Data Governance - FTI - March 13, 2008.pdf - 195 KB |
| Brief Bio - Jim Vint - March 2008.pdf - 10 KB |
| List of Participants - CG of Insurance Companies - March 12-13, 2008.pdf - 63 KB |
Friday, March 7, 2008
Workshop – How to Write A Case Study
Zagreb, Croatia
On Friday, March 7, 2008 the Case Study Writing Project, e-STUDENT, Faculty of Economics and Business, University of Zagreb, and the PFS Program held a Workshop entitled, “How to Write a Case Study.”
This was the third time that Geoffrey Mazullo, Director, PFS Program was invited to teach the introductory Workshop launching the annual Case Study Writing Project at the Faculty of Economics and Business.
40 students from the Case Study Writing Project, e-STUDENT, participated in the Workshop. A representative of the Securities Commission of the Federation of Bosnia and Herzegovina, two representatives of the Securities Commission of Republika Srpska and a representative of the Macedonian Stock Exchange also participated.
This event is part of an ongoing PFS Program regional initiative to introduce students and faculty as well as recent gradates of South East European (SEE) educational institutions to a wide range of analytical and writing skills necessary to writing a high-quality, professional case study.
During the course of the Workshop, students were presented a wide range of case studies, ranging from brief “cases in point” to full-blown case studies. The Workshop explained in practical terms how a case study should present in-depth material; cite data and sources; note comparisons and/or contrasts; pose a range of questions; and demonstrate numerous issues. Furthermore, the Workshop demonstrated that a successful case study should explain the relationship between the specific “case” (company, example or situation) and general benchmarks, best practice, international standards, etc. Even when a case is unique and does not enable comparisons, this should be explained.
At the outset of the Workshop, the PFS Program presented the rationale behind launching its ongoing semi-annual regional surveys: Investor Relations Online and Surveys of Reporting on Corporate Social Responsibility (CSR) by the Largest Listed Companies in 11 Central and Eastern European (CEE) countries. Thereafter, students discussed the methodology for the surveys and a wealth of data from the surveys as well as other sources. At the end of Session 1, the PFS Program described the use of the surveys and their impact.
During Sessions 2 and 3, students analyzed a number of case studies regarding particular issues in corporate governance and/or CSR that the PFS Program uses in its training programs. The case studies discussed concern companies listed and/or operating in Germany, the Netherlands/the United Kingdom, Sweden and the United States.
At the end of Session 3, the PFS Program explained step by step the mechanics of writing a case study about an assigned topic. Each student received a checklist of case study evaluation criteria. The checklist was analyzed in detail, in order to prepare students for the mechanics of the case study writing process.
Through the Workshop, students were introduced to valuable case study writing skills and gained insights into the current status of corporate reporting in Croatia as well as other CEE and SEE countries. They will apply this knowledge in writing case studies about Croatian companies. Also, students who participated in the Workshop may apply for a one-month unpaid internship with the PFS Program in summer 2008. PFS Program interns work on the above-mentioned PFS Program regional surveys.
To download the Workshop agenda and presentations, please click on the links below:
Tuesday, March 4, 2008
PFS Program’s 14th Regional Survey - Investor Relations Online: Survey of Websites of the Largest Listed Companies in Eleven CEE Countries
Today, the PFS Program publishes its 14th semi-annual Survey of Online Investor Relations of the Ten Largest Listed Companies (by market capitalization) in eleven Central and Eastern European (CEE) countries. PFS Program Assistant Magdalena Grabowska and PFS Program Intern Lukasz Gilewicz conducted the survey from February 1 through February 29, 2008.
In this edition of the survey, disclosure in almost all categories remains at or reaches its highest level since the first survey was conducted in August 2001. This trend has been observed since February 2006 and may be viewed as sustainable. This edition of the survey documents an ongoing increase in disclosure of detailed governance information.
90% of the companies surveyed provide a list of management online, compared with 86% in August 2007. This is the largest percentage recorded since the surveys began in 2001. 63% of the companies surveyed provide additional information about management online, compared with 59% in August 2007 and 53% in February 2007. This is also the largest percentage recorded since the surveys began in 2001.
87% of the companies surveyed provide a list of board members online and 52% provide additional information on board members. The former category increased to a new record since the first survey was conducted, from 82% in August 2007. Disclosure in the latter category also reached a new record, posting a slight increase from 51% in August 2007 and a significant increase over 40% in February 2007.
Investor Relations Online: Survey of Websites of the Largest Listed Companies in CEE analyzes the websites of the ten largest listed companies in Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovak Republic and Slovenia. For the fourth time, the survey also analyzes companies in BRIC (Brazil, Russia, India and China) as well as Ukraine in order to compare the online disclosure practices of CEE listed companies with peers in other emerging markets.
The survey analyzes the English-language websites and annual reports of the ten largest listed companies in the above-mentioned CEE countries in order to document the current disclosure practices of this ‘blue-chip’ peer group. Although the market capitalization of companies changes over time, the semi-annual surveys represent a snapshot of disclosure practices of the blue-chip peer group on a given day twice a year. Since the definition of the survey universe has remained the same since the first survey, the surveys provide time-series data for CEE blue-chip companies and thus enable the identification of online disclosure trends as well as best practice within the peer group.
The survey provides current data as of February 15, 2008 and comparisons with the 13 previous surveys, conducted in August 2007, February 2007, August 2006, February 2006, August 2005, February 2005, August 2004, February 2004, August 2003, February 2003, August 2002, February 2002 and August 2001.
Since 2004, the survey includes recommendations on the ideal corporate website and compares CEE companies with the parameters of this ideal. This component of the survey identifies best practice and enables CEE companies to benchmark their disclosure against peers in the region, other emerging markets and industry best practice. Here also, the time-series data identifies online disclosure trends.
Survey results include the following:
Websites: In nine of the 11 CEE countries surveyed, each of the ten largest listed companies has a local-language website on February 15, 2008. In Bulgaria and Lithuania, nine of the ten companies surveyed have a local-language website. In the previous survey, 109 companies surveyed had a local-language website. One of the ten Bulgarian companies surveyed did not have a local-language website.
94.5% of the companies surveyed have an English-language website; the percentage increased from 93% in August 2007.
Information on Management: 90% of the companies surveyed provide a list of management online; 63% provide additional information on management. As noted above, in each category the results represent a new record high since the first survey was conducted in 2001.
Information on Board Members: 87% of the companies surveyed provide a list of board members online and 52% provide additional information on board members. The former category increased to a new record since the first survey was conducted, from 82% in August 2007. Disclosure in the latter category also reached a new record, posting a slight increase from 51% in August 2007 and a significant increase over 40% in February 2007.
Comparisons with BRIC and Ukraine: The largest listed companies in BRIC equal or outperform their CEE peers in every category. However, the gap continues to narrow. Furthermore, when companies in BRIC are compared with peers in the eight CEE countries that joined the EU in 2004, the difference between the peer groups is much smaller. The Ukrainian companies surveyed disclose less information than their peers in both BRIC and CEE. However, the disclosures made by the Ukrainian companies improved vis-à-vis the previous survey. Detailed comparisons include the following:
- Each of the companies surveyed in BRIC has a local language website. In nine of the 11 CEE countries surveyed, each of the companies surveyed has a local language website. In Bulgaria and Lithuania, nine of the ten companies surveyed have a local language website. In Ukraine, nine of the ten companies surveyed have a local language website.
- 100% of the companies surveyed in BRIC have an English website, compared with 94.5% in CEE-11, 99% in the eight CEE countries that joined the EU in 2004 and 70% in Ukraine.
- 100% of the companies surveyed in BRIC provide a list of management online, compared with 90% in the CEE-11 and 94% in the eight CEE countries that joined the EU in 2004. In Ukraine 30% of the companies surveyed provide a list of management online.
- 87.5% of the companies surveyed in BRIC provide additional information on management online, compared with 63% in the CEE-11, 71% in the eight CEE countries that joined the EU in 2004 and 20% in Ukraine.
- 100% of the companies surveyed in BRIC provide a list of board members online, compared with 87% in the CEE-11, 91% in the eight CEE countries that joined the EU in 2004 and 20% in Ukraine.
- 87.5% of the companies surveyed in BRIC provide additional information on board members online, compared with 52% in CEE-11, 64% in the eight CEE countries that joined the EU in 2004 and 10% in Ukraine.
The survey contains information compiled in the following groups and sub-groups:
- Current data on 110 companies in eleven CEE countries;
- Separate data on 80 companies in eight CEE countries that joined the European Union (EU) on May 1, 2004;
- Separate data on 30 companies in Bulgaria, Croatia and Romania;
- Comparisons of the data from this current survey with data from the previous 13 surveys conducted every August and February since August 2001; and
- Separate data on 50 companies in Brazil, Russia, India and China (BRIC) as well as Ukraine.
To download the survey, a presentation of survey results and the company database, please click on the links below:
Wednesday, February 20, 2008
EU Corporate Governance Standards: A Seminar for EU Candidate and Potential Candidate Countries, Including Lessons Learned from New Members
European Parliament, Brussels, Belgium
On Wednesday, February 20, 2008 the Global Corporate Governance Forum, the European Commission, the European Parliament, the IFC, the Slovenian Presidency of the European Union, and the PFS Program held a Seminar entitled, “EU Corporate Governance Standards: A Seminar for EU Candidate and Potential Candidate Countries, Including Lessons Learned from New Members.” The Seminar took place at the European Parliament in Brussels, Belgium.
The key objectives of the Seminar were to:
• Raise awareness about existing EU corporate governance requirements and guidelines;
• Assist candidate and potential candidate countries to better access relevant EU information;
• Assist candidate and potential candidate countries to participate in current EU debates on issues including corporate governance control mechanisms, cross-border voting and executive pay; and
• Review lessons learned from the new EU member states.
Detailed information about the Seminar, including the agenda, background papers, presentations, speaker biographies and list of participants may be found on a sub-page of the website of the Global Corporate Governance forum devoted to the Seminar.
The PFS Program co-financed the participation of senior representatives of financial sector regulatory authorities and stock exchanges from Albania, Bosnia and Herzegovina, Croatia, Macedonia, Montenegro and Serbia in the Seminar. Through their participation, senior decision-makers of these regulatory and self-regulatory authorities gained valuable insights into the development of corporate governance standards in line with EU best practice.
Friday, January 11, 2008 - Sunday, January 13, 2008
Lectures on Corporate Governance
Gdansk, Poland
On January 11-13, 2008 Geoffrey Mazullo, Director, PFS Program gave a series of lectures on corporate governance as part of the School of American Law organized by the Faculty of Law and Administration of the University of Gdansk and Chicago-Kent College of Law.
31 Polish students attended the course. During the three days, students were introduced to the following topics: corporate governance models (including the Anglo-US, German, Japanese and Polish models); disclosure regimes; the legal and self-regulatory framework for corporate governance; the rights and responsibilities of corporate organs, including management and the board; shareholders’ rights; trends in non-financial reporting by listed companies (reporting on corporate governance); and the use of governance information by shareholders and stakeholders.
Students discussed practical and theoretical aspects of corporate governance in several jurisdictions (including Poland) by analyzing a number of case studies about real companies covering each of the above-mentioned topics.
A second set of lectures will follow in April 2008, during which students will analyze additional case studies related to corporate governance, corporate social responsibility (CSR) and reporting on environmental, social and governance (ESG) criteria.
Through an agreement with the School of American Law, students who attend the lectures and complete the School of American Law may apply for an internship with the PFS Program. The School of American Law finances part of the costs of the internship, namely travel and accommodation costs of the student/intern. Between summer 2004 and summer 2007, 16 graduates of the School of American Law completed a PFS Program internship.
During the one-month unpaid internship, the intern conducts one of the PFS Program’s ongoing semi-annual regional surveys: Investor Relations Online: Survey of Websites of the Largest Listed Companies in 11 Central and Eastern European (CEE) Countries or Survey of Reporting on CSR by the Largest Listed Companies in 11 CEE Countries. In 2008, Polish interns will be paired with interns from South East Europe, thereby enhancing both the internship experience and the quality of the PFS Program surveys.
To download the materials presented at the lectures, please click on the links below:
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