Proposed climate-related disclosure and assurance rules for Australia-based public and private companies have been published by the government. The new rules will apply to the largest companies from 1 July, 2024, and expand to cover smaller companies over the following three years. Companies will be required to disclose their transition plans to help investors allocate capital to projects and companies that offer positive climate-related investment opportunities. The rules also propose that companies disclose against a climate scenario consistent with the country’s 1.5°C target, but the Investor Group on Climate Change (IGCC) has noted that stakeholders will also need corporate disclosures to consider current temperature trajectories and the wider range of plausible climate scenarios. The IGCC has welcomed the proposal’s strong alignment with the standards introduced by the International Sustainability Standards Board (ISSB). The government has further proposed a phasing in of Scope 3 disclosures, with the final group of companies only subject to reporting on Scope 3 from 2027. Rebecca Mikula-Wright, CEO at IGCC and Asia Investor Group on Climate Change (AIGCC), said: “The government’s plan for new climate reporting rules will help Australian companies remain attractive in global capital markets while providing investors, regulators, and stakeholders with a comprehensive understanding of the economy’s climate risks and opportunities. Building on the global ISSB standards will help alleviate the reporting and assessment burden for entities that operate across multiple jurisdictions, streamlining their disclosure requirements and fostering consistency. High quality, enforceable climate reporting will be part of the economy’s protections against greenwashing.”
