ACSI welcomes the Federal Government’s announcement today on the consultation process on
mandatory climate change disclosures, and its commitment to a sustainable finance strategy. The
announcement is an important step towards further action on climate change, and more
sustainable financial markets.
Sustainability risks – including climate-change related risks – are financial in nature and deeply
embedded across the economy. They are a significant challenge for Australian companies and
investors, including superannuation funds.
“Greater consistency and comparability in reporting will support investors in understanding the risks
in their portfolios, ” Louise Davidson, ACSI CEO said
“Investors need access to reliable information to understand companies’ exposure to physical and
transitional risks related to climate-change. The lack of a standardised approach to climate reporting means the quality of reporting varies wildly across companies,”.
Companies with material exposures to climate risk are increasingly reporting their climate-related risks, however further work is required, ACSI research has shown that 103 companies in the ASX200
use the Task Force for Climate-Related Disclosures (TCFD) to disclose their climate risks. Consistent with the work of the International Sustainability Standards Board (ISSB), today’s announcements are
a further step forward to the provision of internationally comparable, decision-useful, and consistent information for investors.
“Mandatory climate-related reporting would give an important signal to investors, companies and
regulators about the role the market should play in decarbonisation,” Ms Davidson said.
“Mandatory reporting will lift the market as whole – improving disclosure by laggard companies and
driving transparency on climate change strategies for Australia largest companies.”
Adopting mandatory climate reporting would see Australia follow other jurisdictions around the world, such as the UK, US and New Zealand, and is a logical step towards a global baseline for climate reporting.
“The Government’s commitment to the development of a sustainable finance strategy is a
welcome step forward to support markets that operate in the best financial interests of long-term
asset owners investing on behalf of millions of superannuation fund members.”
ACSI looks forward to working with the Government on these important initiatives.
For more information please contact:
Executive Manager, Corporate Affairs
Australian Council of Superannuation Investors
P: +61 (0)423 874 662