A coalition of investor networks with more than US$150 trillion in AUM have said that Australia’s new climate reporting rules should match global best practice by including standard and decision-useful transition plans. The networks, Investor Group on Climate Change, UN-supported Principles for Responsible Investment, and Carbon Disclosure Project have written to Australia’s Treasurer saying that the current lack of standardisation and regulatory guidance means most companies’ disclosure of their plans for managing the transition to net zero is incomplete or inadequate for investor needs. In the letter they say that the Australian government should develop transition plans aligned with limiting global temperatures to 1.5°C and that build on the ISSB’s inaugural sustainability standards. The UK is currently developing transition plan frameworks for companies expected to be launched Q1 2024. Rebecca Mikula-Wright, CEO of The Investor Group on Climate Change, said: “To help put capital to work in the right parts of the economy, investors need comparable, reliable and standards-based transition plans to be part of companies’ mandatory annual reporting.”
