CPA Australia Chief Executive Officer Andrew Hunter said: “Australia has an opportunity to ‘build back better’ by embedding sustainability principles into our post-COVID economy. This requires a shared effort, and listed companies have a large part to play.
“Although uptake of the Sustainable Development Goals is growing, it’s still concentrated at the top end of the ASX.
“Our goal is to see these principles penetrate further into the index.
“We’re calling on the SDG laggards to embrace a sustainable post-COVID economic transition, rather than merely being an unwilling participant.”
Subramaniam said the voluntary nature of reporting and the lack of a systematic approach to linking business goals with the SDGs results in lower consistency in SDG prioritisation and reporting across the board.
“There are a number of reporting frameworks and guidelines including the GRI standards that companies can adopt for sustainability reporting,” she said.
The report also highlighted the increasing disclosure requirements relating to risks associated with human rights, gender inequality, climate change and more faced by Australian companies.
These requirements have been brought about by regulatory developments and initiatives such as Australia’s Modern Slavery Act 2018 and the Financial Stability Board’s Task Force on Climate-related Financial Disclosure (TCFD).
Many of these issues overlap with the SDGs and require Australian businesses to invest in reliable and effective sustainability reporting systems.
Hunter said: “Sustainability has a material impact on companies’ financial performance and prospects. The accounting profession has a responsibility to ensure the transparency and disclosure of sustainability risks.
“This report will help accountants, investors and others understand how companies are embedding sustainability principles into their operations.”
Download the report: SDG measurement and disclosure 3.0: A study of ASX150 companies
Story: Kate Milkins
