Why sustainability reporting is moving its way to the forefront of the ASX
According to the Australian Council of Superannuation Investors, 97 per cent of all ASX100 companies and 87 per cent of ASX200 companies annually report on sustainability.
Although the key to important sustainability reporting is making sure it’s driving business performance and strategy, it hasn’t always been received so favourably.
RELATED TOPIC: 6 ways to create a sustainable working environment
It was once viewed as simply a branding exercise, but businesses have realised environmental transparency, sustainability, integrity and corporate social responsibility are success driving qualities.
Showing the real-world environmental impact allows companies to comprehend opportunities in their business models and streamline processes. It brings efficiencies and bottom-line savings to the forefront, all while mitigating risk.
RELATED TOPIC: How ERP can lead to sustainable manufacturing
Ultimately, it finds ways to engage with the supply chain, build relationships with stakeholders and invest in new technology.
And it’s not just for large companies. Smaller operations are beginning to understand that using sustainability reports along the supply chain creates value and helps build trust between the two sides.
RELATED TOPIC: 4 ways ASX mining investors are affected by Glencore
Meanwhile, the Singapore Exchange (SGX) intends to seek feedback on proposals to make sustainability reporting even more important through a “comply or explain” regime. The SGX recently conducted surveys that showed over 90 per cent of respondents viewed environmental, social and governance (ESG) factors in their investments.
In addition, companies vehemently expressed to the SGX that they want flexibility in their new reporting regime to find the best fit for their business. In most instances, corporations are already addressing the issues that would be in a sustainability report, and will simply need to report what it changed.
RELATED TOPIC: How Beach Energy plans to become an ASX top 50 company
In the same way sustainable reporting embraces long-term management, SGX also views it as a plan for the entire market.