New Climate Reporting Rules Will Help Australia Thrive
22 August 2024
Australia's new mandatory climate disclosure regime, passed by the Senate today, will help get private investment into the businesses and projects that will drive Australia's economy and jobs.
IGCC and our members have been steadfastly advocating for mandatory climate disclosures over the long term. A fair, fast and well planned transition is required to protect the retirement savings of millions of Australia from climate change damages.
By providing the foundation for appropriate climate information to be reported across economy, the new climate reporting rules will help Australian companies remain attractive in global capital markets.
They will also help investors, regulators, and stakeholders form a comprehensive understanding of the economy’s climate risks and opportunities, fuelling investment in clean industry.
“Before you buy a house you want to make sure it can weather the increasing storms to come,” Rebecca Mikula Wright, CEO of the Investor Group on Climate Change said, “Investors apply the same principle to climate investment in the economy because they want to invest in companies prepared for the transition to net zero emissions and deliver stronger returns for millions of superannuation holders.”
As the Australian Accounting Standards Board implements the rules, we note that alignment with global standards, wherever possible, will streamline reporting processes for investors and companies who operate in multiple jurisdictions.
Mandatory Climate Disclosures are supported by 15 of Australia’s most influential peak bodies representing business, finance, retail and institutional investors, including the Business Council of Australia, Group 100 CFOs, the Australian Institute of Company Directors, Australian Shareholders’ Association, the Insurance Council of Australia, and the Investor Group on Climate Change.
Rebecca Mikula Wright, CEO of the Investor Group on Climate Change said:
“Australia has the businesses and advantages that can drive the economy now and in a net zero world. These new rules will help businesses attract the capital they need to thrive and support jobs, pay bills and put food on the table for decades to come.”