Consumer services and media lag in sustainability reporting

Sustainability disclosure has not been a top priority for the consumer services and media sectors who earned a rating of 69 per cent and 64 per cent respectively in terms of companies that report sustainability, according to 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 found there were three laggards in the group that neglected to report on sustainability on any level for four or more consecutive years, despite engagement by ACSI on the need for improved disclosure as risk management tool.

The three companies were IRESS, Mesoblast, and TPG Telecom. However, none of these companies fell into sectors that were found to have the lowest level of reporting.  

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On the other end of the scale almost 50 per cent of companies rate 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," ACSI 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.

The report found companies that were rated as 'leading' in all eight years of ACSI's research were ANZ, Dexus Property, Insurance Australia, Mirvac, National Australia Bank, Orica, Transurban Group, and Westpac.  

"ACSI looks forward to a significant improvement in future years' reporting, as the newly-revised ASX Guidelines formally come into effect," Davidson said.
The review said that reporting did not have to only include environmental impacts but also social factors such as labour standards, customer or employee satisfaction or stakeholder engagement.