One of the key questions for companies that are just getting started with Environmental, Social and Governance (ESG) is which topics they should focus on. 

Depending on which ESG framework you use, there could be more than 30 topics that fall under the umbrella of ‘ESG’. Companies are not expected to manage and report on all topics, but just those topics the company has determined to be ‘material’. 

Gender diversity on boards is a key ESG performance indicator for listed companies of all sizes and across industries. Here’s what you need to know:

• Workforce diversity is considered a material disclosure according to the ESG reporting framework preferred by investors, with a particular focus on gender diversity at executive level
  
  
• Institutional investors are ramping up advocacy around board diversity; for ASX 300 companies with poor female representation, this could see the re-election of male directors vetoed
  
  
• Since 2010 the ASX has recommended listed companies set and disclose a diversity target annually, and investors are increasingly expecting this recommendation to be adopted.

If your institutional investors aren’t asking you about your board diversity targets just yet, chances are they soon will be.

We are pleased to announce the publication of IR Department’s foundational Environmental Social Governance (ESG) report.

The report provides a snapshot of our ESG performance and sets out the objectives of our ESG program to June 2024.

We produced the report off the back of the launch of our ESG practice earlier this year, to respond to the growing reporting needs of our micro and small cap clients. We know that ESG reporting can feel overwhelming, and confusing. We wanted to demonstrate a simple approach to producing high quality ESG information, and establishing a program with strong ties back to business objectives.

Here are 5 key take-aways for companies wanting to get started with their own reporting program:

And what to do about it.

As governments around the world roll out mandatory climate reporting legislation to support the world’s transition to a net zero emissions economy, it’s clear that large entities will need to begin emissions accounting some time over the next 12 months, if they aren’t already doing so.

The impact of mandatory reporting on smaller businesses, though, has not been so clear.

A new move by Amazon to update its Supply Chain Standards next year to require its suppliers to share their emissions data and set reduction goals gives us some clue of how the requirements imposed on larger companies could trickle down on smaller entities – and when.

In short, it appears smaller entities are going to be impacted much sooner than anticipated.

Key takeaways

• The new sustainability disclosure standards, IFRS S1 and S2, draw upon and consolidate many of the leading ESG reporting frameworks in use today
• Designed to standardise ESG reporting principles for the benefit of the investment community in decision making process
• Governments are developing new legislation for listed entities aligned with standards
• Based on accounting principles, the new standards are expected to significantly change corporate reporting, and spur a large uptake of emissions accounting by organisations.

• New ESG practice bolsters consultancy’s client offering
• Appointment of Jack McLintock, Annabelle Dick and Anna Cvijetić expand IR Department’s investor and public relations expertise

ESG (environmental, social, and governance) has become a key factor for investors when making investment decisions. As such, incorporating ESG into your investor relations approach is crucial for success.

Our latest blog post explores the benefits of ESG for companies, including attracting socially responsible investors, managing risks, building a positive brand reputation, and ensuring regulatory compliance. We also provide practical tips on how to integrate ESG into your investor relations approach. Read our blog post now and learn how to build a sustainable and responsible business that benefits all stakeholders.