What is the Future of Sustainability Reporting?

In September 2020, 90% of ASX200 companies produced a sustainability report. This number has drastically increased over the previous 10 years.

These sustainability reports are fantastic for shareholders to get an annual update of each company’s commitment to an economically, socially and environmentally sustainable future.

However, as an increasing number of companies publish these reports, the function of these reports will start to change.

In a world where we receive information on current events within seconds of it happening to our phone, 12 months between sustainability reports is a long time to wait.

Already, companies are making use of their social media to talk about what they are doing to tackle economic inequalities, social injustices and climate change. This is important for customers, clients and employees but does not do much for their investors who rely more heavily on quantitative data.

For investors who are looking to invest in companies with a strong commitment to sustainability, it is important that this report is easily digestible, comprehensive while not being overwhelming and speaks to what they need to know to guide their investment decisions.