Commonwealth Climate and Law Initiative (CCLI)’s Post

𝐈𝐬 𝐲𝐨𝐮𝐫 𝐨𝐫𝐠𝐚𝐧𝐢𝐳𝐚𝐭𝐢𝐨𝐧 𝐫𝐞𝐚𝐝𝐲 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐮𝐩𝐜𝐨𝐦𝐢𝐧𝐠 𝐀𝐮𝐬𝐭𝐫𝐚𝐥𝐢𝐚𝐧 𝐒𝐮𝐬𝐭𝐚𝐢𝐧𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐑𝐞𝐩𝐨𝐫𝐭𝐢𝐧𝐠 𝐒𝐭𝐚𝐧𝐝𝐚𝐫𝐝𝐬 (#𝐀𝐒𝐑𝐒)? This speech by #ASIC Chair Joe Longo outlines ASIC's guidance on the upcoming mandatory climate disclosure regime, urging companies to start preparing now. The guidance highlights key areas companies should focus on, including governance, risk management, strategy, and metrics. Joe stresses the need for clear and transparent communication about climate-related risks and opportunities. The speech underscores the significance of early preparation and proactive engagement with ASIC to ensure smooth transition and effective climate reporting. "𝘈𝘯𝘥 𝘵𝘩𝘪𝘴 𝘪𝘴 𝘢 𝘤𝘳𝘶𝘤𝘪𝘢𝘭 𝘱𝘰𝘪𝘯𝘵: 𝘺𝘰𝘶 𝘩𝘢𝘷𝘦 𝘵𝘰 𝘥𝘰 𝘵𝘩𝘪𝘴 𝘯𝘰𝘸. 𝘐𝘵’𝘴 𝘴𝘪𝘮𝘱𝘭𝘺 𝘯𝘰𝘵 𝘢𝘯 𝘰𝘱𝘵𝘪𝘰𝘯 𝘵𝘰 𝘱𝘶𝘵 𝘵𝘩𝘪𝘴 𝘰𝘧𝘧 𝘶𝘯𝘵𝘪𝘭 𝘢𝘧𝘵𝘦𝘳 𝘭𝘦𝘨𝘪𝘴𝘭𝘢𝘵𝘪𝘰𝘯 𝘩𝘢𝘴 𝘱𝘢𝘴𝘴𝘦𝘥, 𝘢𝘯𝘥 𝘵𝘩𝘦𝘯 𝘴𝘤𝘳𝘢𝘮𝘣𝘭𝘦 𝘵𝘰 𝘤𝘰𝘮𝘱𝘭𝘺. 𝘠𝘰𝘶 𝘩𝘢𝘷𝘦 𝘵𝘰 𝘧𝘪𝘨𝘶𝘳𝘦 𝘰𝘶𝘵 𝘩𝘰𝘸 𝘺𝘰𝘶'𝘳𝘦 𝘨𝘰𝘪𝘯𝘨 𝘵𝘰 𝘮𝘢𝘳𝘴𝘩𝘢𝘭 𝘥𝘢𝘵𝘢, 𝘴𝘶𝘱𝘱𝘰𝘳𝘵 𝘢𝘯𝘥 𝘤𝘢𝘱𝘢𝘣𝘪𝘭𝘪𝘵𝘪𝘦𝘴 𝘢𝘯𝘥 𝘴𝘵𝘢𝘳𝘵 𝘬𝘦𝘦𝘱𝘪𝘯𝘨 𝘵𝘩𝘦 𝘯𝘦𝘤𝘦𝘴𝘴𝘢𝘳𝘺 𝘳𝘦𝘤𝘰𝘳𝘥𝘴 𝘯𝘰𝘸 – 𝘵𝘰𝘥𝘢𝘺." - ASIC Chair Joe Longo IBM #Sustainability software provide organizations with the platforms for collecting ESG data, conducting GHG accounting, setting net zero targets, undertaking scenario analysis and creating transition plans, evaluating climate risks and disclosing climate-related financial information. If you wish to leverage technology to accelerate your sustainability journey and build a resilient business into the future, we are here to help. Andrew Allsopp William Gunadi Gareth McGlone Phil Williams Frank Briner Tony Holmes Darren Belford Kara Bombardieri Sean Innes David Small Sachin Gupta Mamatha Venkatesh(she/her/hers) Michael Wang https://lnkd.in/ggkCQQpf

Climate Governance Forum - AICD 23 August 2024 Sydney ICC Glad to participate to the 2024 Climate Governance, which comes at a critical time for businesses as many move from ambition to execution of their climate goals. The Forum is an opportunity for company directors to connect with leaders in climate governance and hear from subject matter experts on a variety of climate-related issues affecting boards. Some discussions on long term #sustainability approaches, the need to support companies in this climate #reporting transition. From ambition to #implementation. Climate is now part of #risk management, not just a reputational issue.  Some ASX listed now have targets of 75% of their suppliers who will need #netzero #SBTi certifications! Points raised on the required integration of climate change targets with #strategy and #suppliers, helping suppliers to find ways to reduce emissions and #decarbonise.  About the need to understand and explain what climate and scope #targets actually mean in terms of #implementation and #requirements, #business plan and strategy. All climate disclosures to be audited (assurance) by 2030 and discussion on sustainability reporting now part of annual reporting, and the #Capital deployment required towards climate risks and #opportunities, and company directors #remuneration linked to climate performance. To measure your physical climate risks impacting #physical #assets should be part of normal risk management, with credible #operational actions aligning the climate strategy. Importance of forward-looking information to be disclosed, verification and assurance that will be required; what is your disclosure process, how do you substantiate your claims, dependencies on the disclosures and assumptions and public claims; and the importance of transition plans and targets. #Mandatory #Climate #Reporting should also provide a balanced view of both opportunities and challenges, and uncertainties and risks. Questions around are your targets aligned with your strategy, is the capital and #resources needed accessible to the firm in order to deliver the projects, are the new projects dependant on new #technologies to be developed and scaled up? Are your targets and plans reliant on others (like Scope 3, suppliers) and do you have influence? Point made on Private companies that must start with "dry runs" now as never really reported publicly (unlike #ASX listed). AND bringing various depts and internal teams together can be a challenge for climate reporting. "Forward looking" thinking should not become "forward dreaming" with too much reliance on new technologies to decarbonise that are not here yet. ESG is not just PR, but a financial board matter. Also a worry that most sustainability & climate reports and targets are often from least exposed climate sectors who have little tangible assets, contrary to asset heavy industries like agriculture, production, transport, who have less targets because harder to #decarbonise. 

🌍 Recent insights from Accenture underscore a pressing issue: a critical gap in corporate readiness for climate reporting that demands immediate attention. Only 22% of CFOs feel prepared for the impending climate reporting and assurance requirements. This is not just a statistic; it's a call to action for industry leaders to act swiftly and decisively. 📊 Here's why this matters … Risk Management: Effective climate reporting can empower companies to anticipate and mitigate potential environmental risks, paving the way for a more sustainable and resilient future. Investor Confidence: Transparent disclosures can significantly boost investor trust and attract further investments. Regulatory Compliance: Keeping up with regulatory demands is not just about avoiding penalties; it's about embracing innovation and sustainability leadership opportunities. This is a chance for your company to stand out and make a real difference. The path ahead requires a strategic overhaul of traditional practices, a journey that industry leaders are uniquely positioned to lead. It's about aligning closer than ever with sustainability goals that benefit the companies and the planet. What steps is your company taking to enhance climate reporting? How are you integrating these new requirements into broader business strategies? Let us know in the comments. Read the full report 👉 https://lnkd.in/dkqcATD6 Jens C. Laue | Stephanie Jamison | Michela Coppola

As a research-driven consultancy dedicated to guiding businesses toward sustainable success, we understand the critical need to prepare for the upcoming mandatory climate disclosures. everfocus has reviewed a recent speech by the Chair of ASIC on the importance of preparing for the new climate disclosure requirements and distilled these 5 key themes: 1. Urgency of Preparation: Businesses should start now, as implementing robust climate disclosure practices requires time to establish and refine. 2. Global Standards Alignment: The new requirements will align with international standards, ensuring Australian businesses remain competitive globally. 3. Governance and Risk Management: Effective climate disclosures demand strong governance and risk management frameworks, which take time to develop. 4. Investor Expectations: Investors are increasingly expecting transparency on climate-related risks, making early compliance a strategic move. 5. Regulatory Evolution: ASIC emphasises that the regulatory environment is evolving rapidly, and businesses that start preparing now will be better positioned to adapt. Is your business prepared for the upcoming climate disclosures? Whether you’re concerned, unaware, or confident, share your thoughts in the comments—we’d love to hear how you’re approaching these changes.” #ESG #sustainabilityreporting #businessadvantage

Deloitte New Zealand’s latest #climate disclosure trends analysis reveals a pervasive absence of climate metrics and targets relating to physical climate risks and non-GHG-related transition risks. This indicates that New Zealand’s climate reporting entities have distance to cover when it comes to embedding climate considerations into core business strategy. When it comes to overall reporting quality, the energy and construction & infrastructure sectors have outperformed in terms of articulating robust climate risk governance and climate risk assessment and management practices. To view a snapshot of New Zealand’s cross-sectoral climate risk profile, and to find out how well your sector has performed, click here: https://lnkd.in/gsmuzXEg Louise Aitken Monika Sharma Wakeman Andrew Boivin Will Symons Darren Adamally Frances Arns Olivia Moulder Eric Kwon

Comparison of climate risk reporting mandates 🌎 Until recently, companies could decide whether to share information about their greenhouse gas (GHG) emissions and how climate change might affect their business models. But that’s changing rapidly. A suite of new laws—most notably in the European Union and the United States—will soon make “climate-related disclosures” mandatory across much of the global economy. Over the course of only a few years, disclosure mandates have been passed in jurisdictions on nearly every continent—not only Europe and the United States, but also in Switzerland, Hong Kong, Brazil, and New Zealand, among others. Some of these rules are more stringent than others. Perhaps the most common objection to climate risk reporting is that it presents an undue burden to companies. The fractured reporting frameworks have been criticized as too confusing, unhelpful in creating comparable data, and ultimately used as an excuse for not reporting. It is true that reporting requires companies to collect and collate complex information. Adding to this concern is the fact that some multinational companies will fall into reporting scope in more than one place—for example, both California and the EU. If these jurisdictions have different reporting requirements, the company might appear to be presented with double the work. However, a closer look reveals significant overlap in the information required by major mandatory disclosure frameworks. It may not be a cut-and-paste job, but it shouldn’t be double the work, either. This is because as governments have announced mandated disclosures, legacy voluntary reporting frameworks have consolidated. In 2022, the International Financial Reporting Standards Board (IFRS) announced the launch of the International Sustainability Standards Board (ISSB) disclosure frameworks 1 and 2. These merged several legacy frameworks, including the Global Reporting Initiative and the Sustainability Accounting Standards Board. The Task Force on Climate-related Financial Disclosures, whose framework was used as a baseline for several jurisdictions’ disclosure mandates, has also wound down its oversight of the framework and passed the baton to the ISSB. It declared that the ISSB frameworks mark “the culmination of the work of the TCFD. This movement towards mandatory climate reporting reflects a significant shift towards transparency and accountability in the global economy, emphasizing the importance of standardized disclosures to address and mitigate climate risks effectively. Source: World Resources Institute #sustainability #sustainable #business #esg #climatechange #climateaction #reporting #compliance

We look forward to hosting the next Institute of Internal Auditors members' meeting. Join us if you'd like to learn more about auditing ESG and climate reporting from our ESG specialists Catherine Bell and Karien Erasmus. #ESG #climaterisk #IIA

Pleased to see the shift in sustainability as a priority issue. In helping organisations with performance improvement and business model optimisation it’s been tough to get sustainability included as a priority at the top table and internal sustainability specialists struggle to get support for anything more than reporting. For NZ, for our productivity, our export credentials and market access and our future let’s hope this shift continues. A recent trip across Europe really highlighted the gap in practices here with sustainability built in to food and beverage, hotels and experiences. It’s just good business.

We're excited to launch the second annual EY Nature Risk Barometer during COP16 in Cali, Colombia! This comprehensive report delves into nature-related financial disclosures, aligning with the TNFD's 14 recommendations. This year, we've broadened our analysis to include 369 companies across 10 sectors in the US, Canada, and Latin America. It highlights how businesses are preparing for and addressing nature-related risks and opportunities. Discover the key takeaways of the EY Nature Risk Barometer and benchmark your company's reporting against the industry's best practices. https://lnkd.in/eZ8_BsZj   #COP16 #EYNatureRiskBarometer #TNFD #NatureRelatedDisclosures #Sustainability Bruno Sarda Mark Weick Alexandra Banks Velislava Ivanova Matthew Bell Madeline M. Wagner Erin Percifull, PMP Reagan Richmond Aidan Soper

The SEC's proposed climate disclosure rule could fundamentally transform how companies report climate-related risks. Should the rule pass, businesses listed on US stock exchanges will be required to provide detailed climate data, akin to the standards investors are already seeing in Europe. While there may be legal challenges ahead, I believe that forward-thinking companies will begin preparing now—whether implementation happens tomorrow or at a later date. A few key considerations stand out to me: • Companies will need to regularly disclose Scope 1 and 2 emissions in their financial filings, an area of increasing focus within sustainability strategies. • We are likely to see a shift in how companies report not only physical risks, such as extreme weather events, but also transition risks and vulnerabilities within their supply chains. • Governance and accountability will become even more critical, and I am particularly interested in how boards will evolve to meet these new challenges. From my experience, staying ahead of these regulatory shifts is not merely about compliance—it’s about fostering resilience and building trust with investors. Read the full article: https://lnkd.in/gzy6PyNa #ClimateRisk #Sustainability #ESG #ClimateDisclosure