ESG reporting the norm for ASX 200: ACSI
The majority of ASX 200 companies are now disclosing detailed information on their environmental, social and governance (ESG) risks and plans to manage them, according to research by the Australian Council of Superannuation Investors (ACSI).
At the start of the annual research in 2008, just 31 Australian listed companies provided investors with ESG disclosures rated ‘Detailed’ or ‘Comprehensive’. In 2021, 140 ASX 200 companies were rated in those same categories.
ACSI chief executive, Louise Davidson, said: “Over those years, the quality and detail of reporting on material ESG issues has progressively risen. Now, providing investors with ESG disclosures is the norm rather than the exception.
“The rise in reporting signals that corporate Australia now recognises that managing material ESG risks is a crucial part of doing business.”
Another encouraging finding was that 64% of the ASX 200 now mapped their risks against individual UN Sustainable Development Goals (SDGs) or used the SDG framework to guide their reporting.
Unsurprisingly Climate Action (Goal 13) was the most-cited priority SDG. Five years ago, just 10% of the ASX 200 reported against the SDGs.
Disappointingly, however, 6% of ASX 200 companies still failed to disclose any ESG risks to investors.
“While not all ESG risks are relevant to all companies, every company faces some ESG risks, and they should be reported,” Davidson said.
“If a company does not report, it is not possible for investors to assess whether a company is aware of its ESG risk, let alone how a company is managing its risk.”
The ACSI ESG Reporting Trends research assessed ESG disclosures for the ASX 200 to 31 March 2022.
AUTHOR
Liam Cormican
Recommended for you
Some 42 per cent of CEOs say they are actively reinventing their business to stay relevant in the next decade, with consumer services the most common choice for asset and wealth managers.
Former Ophir Asset Management chief executive, George Chirakis, has joined private equity manager Scarcity Partners, while the asset manager has appointed a replacement from Macquarie.
Australian Unity has appointed a fund manager for its Healthcare Property Trust, joining from Centuria Healthcare, as it restructures the product with a series of senior appointments.
Financial advisers nervous about the liquidity of private markets funds for their retail clients are the target of fund managers launching semi-liquid products which offer greater flexibility and redemptions.
