Australian companies have shifted their ESG focus towards greenhouse gas emissions according to the results of the Perennial Better Future survey.
In the survey, sent to around 200 ASX-listed companies, emissions were found to be the top area of focus and improvement for companies in the past few years. Diversity ranked first in the inaugural survey in 2019, while governance took the top spot in 2020.
The companies surveyed said that emissions were becoming more important or material to their business and would be the top area of focus over the next 12 to 18 months.
“This demonstrates Australian companies are starting to come to grips with the urgency and opportunity of acting on climate risk," said Emilie O'Neill, Perennial Better Future's co-head of ESG.
Diversity, modern slavery and cyber security were also ranked among the top areas of focus for companies in the coming months.
Eighty-eight per cent of the survey respondents said they had a board member or senior executive who is responsible for ESG, and 81 per cent said they had a business strategy that specifically refers to ESG and sustainability.
"This year's results revealed the pandemic has not stopped boards and senior management seeking to improve ESG practices and policies," Ms O'Neill said.
Focusing on sustainability and ESG had led to improved business outcomes for 86 per cent of the businesses surveyed and 93 per cent said that engaging with investors on these issues was beneficial to their company.
"Given the likelihood of greater investor and other stakeholder interest in relation to ESG matters, we look forward to continuing to track how ASX companies progress,” said Damian Cottier, portfolio manager of the Perennial Better Future Strategies.
“We will continue to engage with companies to encourage them to play a greater role in positively shaping a better future," Mr Cottier added.
Jon Bragg
Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.
