The comments come after research from the Australian Council of Superannuation Investors (ACSI) found about 33 per cent of top 200 companies still sit within the ACSI's lowest two categories when it comes to ESG reporting. One out of three companies either has very basic reporting or none at all. More than one in 10 currently fail to provide meaningful information on sustainability factors. As Australia's $2 trillion superannuation industry continues to grow, super funds are gaining more clout to push for improved disclosure on how their members' money is being spent. But detailed ESG reporting is not currently mandatory for listed companies, and industry participants are reluctant to push the reporting as a must-have. The FSC and ACSI launched a new ESG guide for Australian companies on Wednesday, outlining a framework to disclose the information to shareholders. "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," she said. The spotlight on ESG follows high-profile cases, such as Vale and BHP Billiton's mine disaster in Brazil, which saw more than 600 people lose their homes after a massive dam burst. ANZ Banking Group's ethics also came under scrutiny in 2014 after it was reported the banking giant had funded a Cambodian sugar plantation that employs child labour. Since 2014, the ASX corporate governance principles have required companies to disclose material exposure to economic, environmental and social sustainability risks and how they are being managed. Louise Davidson, chief executive of ACSI, said investors needed to "price and evaluate these [ESG] risks if they're to protect and manage their investments for the long-term". "For that to happen effectively, companies need to not just list those risks, but explain how they're managing them," she said. "Year-on-year our sustainability reporting research has shown a continuous progress in reporting, but there's still room for improvement." Ruth Liew writes on business specialising in Insurance, wealth management and financial services. Ruth is based in our Sydney newsroom.
Research from ACSI (ACSI) found that 33% of the top 200 companies still sit within the ACSI 's lowest two categories when it comes to ESG reporting. One out of three companies has either very basic reporting or none at all. As Billiton 's $ about 33 per cent superannuation industry continues to grow, super funds are gaining more power to push for improved disclosure on how their members' money is spent. The Financial Services Council ( FSC ) and ASX this week launched a new ESG guide for Australian companies, outlining a framework to disclose the information to shareholders. Since this week , the ASX corporate governance principles have required companies to disclose material exposure to economic, environmental and social sustainability risks and how they are being managed.