The Australian extractive sector has a critical role to play in delivering the resources needed to deliver a prosperous low carbon economy. As vocal supporters of the Paris Agreement investors have called upon global leaders and governments to strengthen nationally determined contributions to meet the global emissions reduction goal and to do this by 2020. We now call on companies to do more to direct their trade associations and industry bodies in enabling Paris aligned policy.
For long term institutional investors, the mitigation of climate change is essential to safeguard investments. A smooth transition to a low carbon economy requires governments to implement effective policy mechanisms, by providing the right incentives to support investment in low carbon assets while supporting communities in the changes that such a shift will engender.
Companies need to contribute constructively to that process. Companies should be consistent in their policy engagement with governments and ensure any engagement conducted on their behalf via industry bodies is aligned with the objectives of the Paris Agreement. The funding of organisations undertaking lobbying in contradiction with companies’ own stated positions is a real concern which presents material business risks.