The Albanese Government’s announcement of significant reforms in climate reporting marks a transformative step for Australia’s financial system.
The draft legislation, amending the Australian Securities and Investment Commission Act 2001 and the Corporations Act 2001, introduces standardised, internationally-aligned reporting requirements for businesses.
This initiative aims to enhance transparency in climate-related financial disclosures, enabling investors and companies to make more informed investment decisions.
These reforms are crucial for laying a foundation for a stronger, more robust financial system, focusing on the economic opportunities arising from a transition to cleaner, cheaper, and more reliable energy. The government’s balanced approach follows extensive consultation with various stakeholders, including industry experts, investors, academics, and regulators.
Another significant aspect of this draft legislation is the phased approach to implementing these changes. It provides companies with early visibility of the proposed reporting requirements, allowing them to build capacity for high-quality climate risk disclosures. The breadth of entities required to report will expand over time, ensuring a comprehensive and inclusive framework.
The draft legislation’s consultation phase is currently open, with submissions closing on 9 February 2024. This consultation period offers a platform for further input and refinement of the proposed reforms.
The Albanese Government’s initiative is a proactive response to the challenges posed by climate change. It recognises the necessity of adapting the financial system to capitalise on the economic benefits of a net-zero transformation.
The government emphasises the importance of these reforms in providing “the transparency, clarity, and certainty needed to invest in new opportunities as part of the net-zero transformation”.
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