Environmental, social and sustainability risks to be highlighted in corporate reporting

Key Points:

Updated ASX Corporate Governance Principles and Recommendations are set to include a recommendation for listed companies to report on economic, environmental and social sustainability risks.

Markets and, in turn, regulators are requiring increasing openness and accountability from listed companies. Good environmental, social and sustainability practices are rewarded by both investors and consumers. Some jurisdictions internationally have already moved to regulate corporate governance in this area. In Australia, the Draft third edition ASX Corporate Governance Principles and Recommendations proposes that listed companies specifically report on environmental, social and sustainability risks.