POWERED BY MOMENTUM MEDIA
ASX200 still lag in climate disclosure
While less than half (44 per cent) of Australia’s largest listed companies have a climate change policy or emissions reduction target, banks lead the way for sustainability reporting, according to a report.
An Australian Council of Superannuation Investors (ACSI) report found that 70 ASX200 companies did not make any climate-related disclosures in 2016.
ACSI’s chief executive, Louise Davidson, said companies needed to rapidly adjust their reporting practices to include climate disclosure.
“Our members have a legitimate need to price climate risk into their investment decisions to ensure they are maximising long-term benefits for their beneficiaries,” she said.
The report found the best performing sectors for sustainability reporting were banking, and energy and utilities, with 86 per cent of companies rated ‘leading’ or ‘detailed’.
Banks were also the best performing sector for climate-related disclosure, with five out of seven banks reporting three key indicators – emissions, a policy, and a target.
ANZ, Commonwealth Bank, Insurance Australia Group, Macquarie Group, NAB, and Westpac were part of the companies that were rated as ‘leading’ for the last four years.
ACSI said most ASX200 companies saw the value in sustainability disclosure with almost all undertaking some reporting, 92 per cent in 2016, compared to 80 per cent in 2009.
Over 50 per cent of the ASX200 now reported to a ‘leading’ or ‘detailed’ standard compared to 19.5 per cent in 2008. A further 85 cents in every dollar invested in the ASX200 flowed to companies that reported to a high standard.
However, 16 ASX200 companies did not undertake any sustainability disclosure in 2016, but this was down from 40 in 2008.
“It’s difficult to understand how these companies think this is acceptable in this day and age, especially since we know some of the non-reporters have appreciable exposures to ESG [environmental, social, and governance] risks,” Davidson said.
The report also found that the depth of disclosure by many companies remained sub-optimal with 42 per cent achieving a ‘basic’ or ‘moderate’ rating.
Recommended for you
Equity markets have surged ahead of fundamentals as institutional investors fall behind, according to Ten Cap Alpha Plus.
Local investors are leading the region in plans to boost private market exposure, as demand grows for innovative fund structures, resilient investments, and a more selective approach to alternatives.
Research shows institutional investors are increasingly turning to private credit, but the APAC region’s relatively small market size remains a key constraint.
The global financial platform has completed a Series F funding round, with superannuation funds participating in the round.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
53.24 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
43.15 3 y p.a(%)
4
DomaCom Shoreline North Coogee
36.26 3 y p.a(%)
5
GAM LSA Private Shares AU I
35.87 3 y p.a(%)
