Third of companies still lag in sustainability reporting
Sustainability disclosure has not been a priority for 33 per cent of S&P/ASX200 companies as they rate in the lowest two reporting categories in a review released today.
The Australian Council of Superannuation Investors' (ACSI) annual review of sustainability disclosure found that despite an improvement from last year — 40 per cent — one in three companies still did not adequately explain sustainability risks relevant to them and its industry, and how they are managing them.
The report also found there were three laggards in the group that neglected to report sustainability on any level for four or more consecutive years, despite engagement by ACSI on the need for improved disclosure as a risk management tool.
The three companies were IRESS, Mesoblast, and TPG Telecom. However, none of these companies fell into overall sectors that were found to have the lowest level of reporting. The lowest reporting sectors were consumer services at 69 per cent and media at 64 per cent.
On the other end of the scale almost 50 per cent of companies rated in the top two categories of ‘leading and detailed' , up from last years' 40 per cent.
"While this result is an improvement on previous years at both ends of the scale, it is disappointing that so many companies are still falling short of the reasonable sustainability reporting expectation of their long-term shareholders," ASCI chief executive, Louise Davidson, said.
The top reporting sectors were banks, real estate, commercial and professional services and supplies, food, beverage and staples retailing, and capital goods and transportation all at 100 per cent.
Companies that were rated as ‘leading' in sustainability reporting in all eight years of ACSI's research were ANZ, Dexus Property, Insurance Australia, Mirvac, National Australia Bank, Orica, Transurban Group, and Westpac.
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