Will Profit be Enough to Inspire Businesses to Tackle Future Challenges?

by Sandra Roggeveen

The United Nations Sustainable Development Goals (SDGs) and Global Compact ambitiously address a move to a fairer world. Often, Australian companies whose purpose is profit appear only to address the goals that benefit their shareholders or public image. Should a company address all seventeen goals to be truly sustainable, or is lowering carbon emissions enough to satisfy societal goals?

Like the majority of the companies listed on the ASX, Quickstep Technologies (ASX: QHL) prides itself on zero severe environmental harm, greenhouse gas monitoring policies and research into energy-efficient production. However, when it comes to diversity, they fail to address inequality. Mark Burgess, the CEO, earns over $770,000 per annum and has a lot to say about profit but little to address the difference between policy and the statistical reality of the 2020-2021 reporting period. The question may be whether it is expected of an ASX listed company to address all seventeen goals.

Source: quickstep.com.au

In line with Quickstep Technologies’ rather large CEO payment, $1.61M is the median bonus paid to a CEO of an ASX100 company. Industry statistics for female diversity show that 28% of all STEM qualified industries are women, and 27.9% are women on all ASX company boards. With only the top 100 largest earners on the ASX leading the standard for best practice of environmental and social governance reporting and 80% of ASX101- ASX200 falling short of detailed governance reporting. We begin to see that the Australian investor has failed to inspire businesses to tackle future challenges to create a fairer world.

Until regulations require ASX listed companies to actively work towards equality and shareholders become more aware of the United Nations’ efforts to inspire businesses. Australia may need more than profit to encourage active participation with the United Nations Global Compact to promote a more equitable world.