• A new report from RMIT and the United Nations Association of Australia found that while Australia’s top 150 listed companies have mentioned sustainability goals, it was difficult to measure their progress.
• It found a rise in the number of companies prioritising sustainability goals, up from 25% in 2018 to 45% in 2019.
• However, Australian companies are more reticent to report on how these goals are actually being achieved compared to their counterparts in Europe.
• Visit Business Insider Australia’s homepage for more stories.

A report from RMIT and the United Nations Association of Australia found that while Australia’s top 150 listed companies have committed to sustainability goals, it’s difficult to measure their progress.

The researchers assessed the corporate sustainability reports of the ASX 150 – the top 150 publicly listed companies in Australia – to find out how they measure and revealed “their awareness of, commitment to and progress on the sustainable development goals (SDGs)” each year.

There are 17 SDGs that Australia, along with 192 other member states of the United Nations, agreed to under the United Nations 2030 Agenda for Sustainable Development. These outline how we can create a more sustainable and equitable world, with goals including gender equality, ending poverty, climate action, quality education and reduced inequalities.

“Businesses play a critical role in Australia’s progress towards sustainable development through the implementation of responsible business operations, developing innovative business models, making investments in sustainable technology and much more,” Professor Nava Subramaniam, lead author and Deputy Dean of Research and Innovation at RMIT’s School of Accounting, Information Systems and Supply Chain said in a statement.

The new report found that while more top listed Aussie companies outlined a commitment to these goals between 2018 and 2019, only a few revealed measurable performance targets related to them.

The number of companies disclosing their SDGs improved from 37% in 2018 to 48% in 2019. There was also an increase in the number of businesses revealing how they prioritised some of these goals, up from 25% in 2018 to 45% in 2019. But only a few companies link their business goals with SDGs, which makes it hard to identify how much progress is being made.

Subramaniam highlighted that not having standardised guidelines when reporting on these sustainability goals makes it hard to keep Aussie companies accountable.

“There are a number of reporting frameworks and guidelines including the GRI standards that companies can adopt for sustainability reporting,” she said. “However, the voluntary nature of reporting and the lack of a systematic approach to linking business goals with the SDGs results in little to no consistency in SDG prioritisation and reporting across the board.”

Ben Woltmann UNAA (NSW) Director of Strategic Partnerships said in a statement that Australia still has a way to go when it comes to reporting on sustainability compared to companies in Europe.

While 48% of ASX150 companies mention SDGs, 75% of European companies report on their sustainability metrics.

“With financial investment becoming increasingly linked to sustainability, it’s not just about our community anymore, it’s also smart business,” he said.

Subramaniam added that because SDG reporting by Aussie businesses is in its infancy, now would be the time to agree on a framework where everyone is held to the same standards.

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