The Australian Council of Superannuation Investors (ACSI) welcomes today’s release of Federal Government’s mandatory climate reporting legislation which aims to strengthen the management of climate related risks and opportunities across the economy.
Climate-change related risks are financial in nature, deeply embedded across the economy and a significant challenge for Australian companies and investors, including superannuation funds.
Mandatory climate reporting will mean that ACSI members will have clearer information about their investee companies’ exposure to physical and transitional risks related to climate-change. This information is integrated into investment processes and used by investors in their risk assessment and stewardship activities.
Investors, including ACSI and its members, have been long calling for greater transparency on climate related risks and opportunities in listed markets and this legislation will support investors to make important investment decisions.
Last year, ACSI research showed that listed companies were well placed for mandatory reporting, with 70% of the ASX200 having already adopted reporting under the Taskforce for Climate-related Disclosures framework.
“Mandated climate reporting will give investors access to consistent, comparable and decision-ready information, as well as allowing them to see how climate risk is being managed across the economy,” said Louise Davidson, ACSI CEO.
“Mandatory climate reporting will allow for a better picture of how climate change is being managed across the economy, and support investors and Government in managing risks and opportunities associated with the transition to a low carbon economy.”