This report assesses the standard of ESG reporting by ASX200 companies for the 2018 reporting period. It is the 12th annual review of ESG reporting by ACSI.
Key findings:
Safety Performance
- 16 of 22 reported workplace fatalities were contractors, suggesting there is a disconnect between the safety practices of companies and the standards they require of contractors.
- 67 companies disclosed no safety information, including eight companies that pay executive bonuses based on safety outcomes. This lack of information is out of step with investor expectations.
Climate-related reporting
- The number of companies reporting against the Taskforce on Climate-related Financial Disclosures framework has doubled in 12 months, with over a quarter of ASX200 companies now committed to the framework.
- The wide range of climate scenarios used, and current levels of reporting, make comparisons between companies difficult.
- Few companies are disclosing long-term, emissions-reduction targets of net zero emissions by 2050.
Workforce reporting
- Consequence management disclosure, which describes how companies deal with poor behaviour and breaches of conduct standards, is gaining prominence in the wake of the Financial Services Royal Commission.
- Only 21 per cent of executive leadership roles in the ASX200 are held by women, and 32 companies still have all male leadership teams.
- Many companies are recognising the value of managing and retaining their workforces, disclosing outcomes of employee engagement surveys, voluntary turnover and training, although the lack of standardised reporting makes comparisons difficult.
As in past years, the research identifies leaders and laggards (companies who have provided no ESG reporting for two or more years) in ESG reporting.
