Submission: Disclosing climate opportunities and risks to secure long-term investment in Australia

13 February 2024
New draft legislation for reporting on climate-related financial risk and opportunity is a critical step for attracting investment capital in Australia.

As major markets move to mandate climate-related financial disclosures, these new requirements will help Australia remain a competitive destination for investment capital. 

These reforms are a natural evolution of Australia’s strong corporate governance framework to promote efficient and resilient markets.   

IGCC’s Submission to Treasury’s consultation on Exposure Draft legislation: 

  • Supports the direction of the legislation as a critical step towards internationally aligned climate-related financial risk disclosure requirements in Australia. 
  • Provides insights on where the legislation needs to be clearer, particularly reporting threshold criteria for investment institutions. 
  • Highlights the importance of supporting guidance and other measures proposed through the Sustainable Finance Strategy for successful implementation. 
  • Provides recommendations on the reporting standard, including on: 
  • The need to promote international alignment building on and taking care not to dent the ISSB baseline 
  • The imperative for disclosures to take account of physical impacts of climate change, including using a 3°C or more scenario  
  • The benefits of considering industry-based metrics for quality, decision-useful disclosures, in line with provisions outlined in the ISSB standards 

 Read the full submission.