IGCC Summit 2023: Policy and Advocacy

At the IGCC Summit 2023, a major topic was policy action and advocacy.

Three Ministers and Opposition Shadow Minister spoke at the Summit, putting government initiatives front and centre as we learnt how investors can capitalise on a more secure policy environment since the 2022 change in government.

Senator Jenny McAllister, Deputy Minister for Climate Change and Energy, outlined policy tools supporting investors, noting that the National Reconstruction Fund aims to catalyse innovation across sectors. She also referenced the new nationally integrated information hub for climate adaptation.

Minister for Climate Change and Energy, Chris Bowen, again celebrated the role that the Investor Group on Climate Change has played in the policy landscape, acknowledging “IGCC has long advocated for detailed sector plans for decarbonisation”.

Treasurer Jim Chalmers highlighted the prominence of climate change and the energy transformation in the new Intergenerational Report.

Shadow Minister for Climate Change and Energy, Ted O’Brien described the coalition’s approach to net zero; balancing climate goals with a powerful, liberal democracy.

SECTOR PATHWAYS

• The panel discussion on unlocking Australian sector targets and pathways, referred to granularity of short-term targets in sector pathways being necessary for behavioural change.
• Sector targets and pathways can also be fed into models that will support diversifying trade exposure away from carbon-intensive commodities.
• Speakers on many panels, across themes, referenced the opportunities that sector pathways will create for decarbonising the hard to abate sectors and heavy industrials in the Australian economy.
• Chair of IGCC and the Investment Committee of Cbus, Stephen Dunn, remarked that “this is the first-time government, industry, and investors have come together to design sector pathways for net zero”.

2035 TARGET

• The panel for building and escalating policy action in 2024, introduced delegates to the approach for the 2035 target. It should be determined based on science and then taking into consideration Australia’s highest ambition using social and sector-by-sector economic analysis and reviewing international standards.
• We highlighted the importance of ambition for target setting across the public and private sector. Speakers in the target-setting panel noted that interim targets can open the door for positive advocacy.

STANDARDS AND DISCLOSURE

• Sue Lloyd, the Vice-Chair of the International Sustainability Standards Board said that, globally, climate reporting is getting better.
• The ISSB has enhanced investor-company dialogue as a single source of truth. Globally and collectively, it has developed a baseline built on market best standards. This will also help consolidate the reporting landscape, bringing in the TCFD under its remit.
• During the panel ‘“All Aboard: Mandatory Climate Disclosures are Leaving the Station,” we were reminded that mandatory disclosures will become a minimum, but some companies may want to provide more information for investors and other stakeholders.
• Currently in Australia only 24% of ASX200 companies disclose physical material risk and only 21% companies publicly climate material scenario risk analysis, there is far more to be done.

ASIC REGULATION

• Greenwashing has been a pertinent topic of discussion over the last 18 months. Legal adviser Daisy Mallett identified three major types of greenwashing:
  • By association (relying on ‘green’ companies’ claims in your portfolios without doing independent due diligence).
  • Transition-washing (ensuring that the activities you are funding align with taxonomies and transition activities).
  • By offset (claiming carbon-neutrality where this is coming from offsets)

A heartfelt thanks to all our speakers, sponsors, and attendees who made this summit an inspiring experience.