More than half of Australia's 200 largest listed companies still fail to provide meaningful disclosure on their environment, social and governance (ESG) performance and related risks, research from the Australian Council of Superannuation Investors (ACSI) has found.
The council, which represents 41 profit-for-members super funds with combined assets under management of $300 billion, warned that it considered taking more serious measures if companies did not improve their reporting.
"In representing some of Australia's largest superannuation investors, ACSI has a responsibility to ensure that the reporting practices of listed Australian companies are up to scratch," ACSI chief executive Ann Byrne said.
"If poor reporting companies remain recalcitrant, we have no choice but to take more serious action," she said.
The research found that four companies of the ASX 100 companies and a further 27 companies within the ASX 200 had no reporting at all.
"We as a courtesy we don't name these companies, but if this continues we might just have to," Byrne said yesterday.
She said ACSI would not go as far as asking its member to refrain from investing in these companies, partly because of practical issues.
"Most of our members have index funds, or part of their portfolios is indexed," she said.
The council's research, called the Sustainability Reporting Journey, was published for the fourth time.
The report showed that the gap between companies with good ESG disclosure practices and those without continues to widen.
"Events over the last decade have demonstrated the effect that neglecting to identify, manage and disclose ESG risks can have on a company's reputation, value, long-term viability and social licence to operate," ACSI said.
"As such, ACSI believes that company-specific data on ESG risk performance is integral for investors to make informed decisions."
