A new Treasury consultation paper seeks views on key considerations for the design and implementation of standardised, internationally-aligned requirements for the disclosure of climate-related financial risks and opportunities in Australia.
It also seeks views on other relevant matters, such as necessary changes to the mandates of Australia’s financial reporting bodies to ensure that they can keep pace with the expansion of international standard-setting priorities on climate and sustainability reporting.
The release of the consultation paper follows a Government commitment to ensuring that large businesses provide Australians and investors with greater transparency and accountability when it comes to their climate-related plans, financial risks, and opportunities.
As part of this commitment, the Government will introduce standardised, internationally-aligned reporting requirements for businesses to make disclosures regarding governance, strategy, risk management, targets and metrics – including greenhouse gasses.
Applying the standardised requirements will be mandatory for certain entities. Views are being sought on the size thresholds that could be applied to determine the mandatory application of the new reporting requirements, with consideration also being given to applying the requirements to smaller listed entities over time.
The Treasurer has announced that Treasury will lead the development of a broad sustainable finance framework for Australia, of which climate-related disclosure will form one part. The consultation paper focuses solely on the climate disclosure reforms.