The majority of ASX200 companies are now disclosing detailed information on their ESG risks and plans to manage them, the 15th iteration of ACSI’s ESG reporting trends in the ASX200 shows. Over those 15 years, the quality and detail of reporting on material ESG issues have progressively risen. Now, providing investors with ESG disclosures is the norm rather than the exception.
*Note - when originally published, this report said 6% of the ASX200 were 'no reporters' instead of 5%. That has been corrected.
Key findings:
- The majority of ASX200 companies are now providing detailed information to their investors on a range of environmental, social and governance factors – 2021 saw a pleasing jump in ‘Comprehensive’ reporters, with 104 companies now in that category, up from 86 in 2020. This means the majority - more than 50% - of the ASX200 is now a ‘Comprehensive’ reporter - a considerable improvement from 2008, when just 10% of companies were ‘Comprehensive’ (then known as ‘Best Practice’) reporters.
- The acceptance of ESG as materially financial drives uplift in ESG reporting – 140 ASX200 companies provide the two highest levels of disclosure, ‘Detailed’ and ‘Comprehensive’. This is an increase of more than 10% on 2020, demonstrating that reporting on ESG issues is now the norm and that companies realise the necessity of demonstrating their ESG performance to investors.
- Most report against the Sustainable Development Goals (SDGs) – 64% of the ASX200 now map their risks against individual SDG goals or use the SDG framework to guide their reporting. Unsurprisingly Climate Action (Goal 13) is the most cited priority SDG. Five years ago, just 10% of the ASX200 reported against SDGs.
- The number of companies who have not yet provided ESG performance data to investors is falling– only 5% of ASX200 companies provide no ESG disclosure at all and are now classified as ‘No reporting’. This percentage is decreasing every year.
- Smaller companies, growing ESG ambition – 57% of small caps ASX101-200 are now rated either ‘Detailed’ or ‘Comprehensive’ reporters, a 12% increase on 2020 and a 50% increase on 2008.
