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ASX100 companies urged to move beyond basic compliance and adopt standardised social impact reporting to demonstrate their contribution to driving meaningful change and creating long-term business value.

As businesses enter an unchartered global landscape of corporate social responsibility, new research has revealed significant weaknesses in how corporate Australia tracks and reports its social impact - leaving their broader impacts on communities, supply chains, and human rights largely unmeasured.

A new report from the Centre for Social Impact at UNSW finds that while 97% of ASX100 companies report on social topics, most disclosures are narrow in focus, inconsistent in quality, and difficult to compare.

The research, The State of ‘S’ Reporting in ESG: Unlocking Corporate Social Impact Opportunities, also confirms a concerning decline in ASX100 firms disclosing social risks between 2023-2024.

“Social impact isn’t just about internal culture or charitable donations,” said lead author Associate Professor Melissa Edwards. “It’s about how a company operates in society – its value chain, its customers, its communities. Without standardised metrics, we’re just counting inputs, not measuring outcomes.”

Key Research Findings

• Only 55% of social indicators are reported on by ASX100 companies, based on 22 out of 40 key criteria defined by the Global Reporting Initiative (GRI), the leading sustainability reporting framework.

• Reporting by ASX100 companies is heavily focused on internal metrics like diversity (97.85%) and employee training (91.40%), while broader social issues and impact remain largely overlooked.

• Community engagement is widely reported (89.25%) but typically shallow - focusing on donations over structured, outcome-based initiatives.

• Under-reported topics by ASX100 companies include:

• Non-compliance with social laws (reported by only 13.98% of ASX100 in company reports)

• Human rights clauses in contracts (reported by only 22.58%)

• Product and service safety impacts (reported by only 16.13%)

Edwards said the successful implementation of climate disclosure and reporting frameworks provided a blueprint for advancing social impact reporting.

“In the past, environmental sustainability has received more attention, and this is largely because measuring social outcomes can be more challenging than environmental,” she said.

“By addressing the complexities in ‘S’ reporting, we can ensure companies are better placed to understand the extent of their social impact. By going beyond basic box-ticking, boards will be able to make data-driven decisions that foster long-term community benefits, build deeper stakeholder trust, and enhance their reputation as leaders in social impact. This shift not only benefits society but also unlocks new business opportunities and mitigates future risks, positioning companies for sustainable growth in an increasingly sustainability-conscious market.”

What Needs to Change in Social Impact Reporting?

The research identifies three major gaps preventing effective social sustainability reporting:

1. No standardised metrics - Unlike environmental reporting, social impact lacks consistent, comparable measures.
2. Limited value chain disclosure - Most disclosures cover internal operations, with little attention to supplier or community impacts.
3. No mandatory assurance - Social data remains unaudited, reducing transparency and stakeholder confidence.

“We’ve seen how mandated climate reporting has transformed environmental disclosures, helping to prevent greenwashing through stronger assurance standards,” said Associate Professor Edwards. “It’s time we applied that same level of rigour to social impact. The frameworks are there; we just need to build the systems to support them.”

Professor Danielle Logue, Director of the Centre for Social Impact says “Companies that scale back their social commitments risk more than reputational damage - they risk losing the trust of their employees, customers, and communities. Walking back from these commitments signals risk, not strength."