The Australian Council of Superannuation Investors and the FSC have released a new set of guidelines on environmental, social and governance (ESG) reporting for ASX-listed companies.
The 2015 ESG Reporting Guide for Australian Companies, released yesterday by ACSI and the FSC, is intended to help companies disclose ESG sustainability risks, as required by the ASX.
FSC chief executive Sally Loane said: "While there is still no mandatory ESG reporting required by listed companies, new ASX recommendations require companies to disclose whether they have material exposure to ESG sustainability risks, and what they are doing to manage the risks.
"We have developed the ESG Reporting Guide for Australian Companies to help them disclose any ESG risks in a consistent way so investors and analysts will have better information to help them make measured investment decisions," Ms Loane said.
"Our reporting guide clearly sets out examples of material risks that investors are looking for in disclosure."
ACSI chief executive Louise Davidson said institutional investors need to be able to price and evaluate ESG risks in order to protect and manage their investment for the long term.
"For that to happen effectively, companies need to not just list those risks, but explain how they’re managing them," said Ms Davidson.
"This is something ACSI has long been aware of, and active in, for many years. We’ve monitored the sustainability reporting of ASX100 companies since 2008, and the ASX200 since 2009," she said.
"Year-on-year, our sustainability reporting research has shown a continuous progress in reporting, but there’s still room for improvement."