Ahead of the InvestorDaily ESG Summit 2023, head of sustainable investments, Pacific at FTSE Russell (an LSEG business), Trista Rose said Australia has lagged “way behind” its global counterparts in the developed world when it comes to climate reporting.
“Australia doesn’t have any reporting framework presently. The ASX only recommends that Australian-listed companies report in line with Task Force on Climate-Related Financial Disclosures (TCFD) recommendations,” she told InvestorDaily.
“While there is a large proportion of companies that do report in line with TCFD recommendations, there’s no independent verification procedure by an auditor for investors to see whether these reports are accurate. There’s no assurance that what is said is actually what’s happening.”
However, with the Albanese government having published a consultation paper last year on the development of a new mandatory corporate climate risk disclosure framework, “change is happening very quickly”, she remarked.
Ms Rose said the details around the reporting requirements that companies would have to adhere to would be made available following the consultation period.
“There is consultation taking place with the finance community on what this should look like,” she said.
“I’d like to know what the scope would be, who it would apply to, and when it should apply.”
According to the consultation paper, internationally aligned disclosure regimes often require disclosure of greenhouse gas emissions such as Scope 1 and 2 emissions.
The paper sought views on the potential interaction between any new requirements and existing national emissions reporting frameworks in Australia, such as the National Greenhouse & Energy Reporting (NGER) framework, Corporate Emission Reporting Transparency Initiative (CERT) and Climate Active’s Carbon Neutral Standards.
It also sought views on how to minimise duplication for affected entities that also report emissions through these frameworks.
In unison with this, the consultation paper proposed that some requirements to disclose Scope 3 emissions will apply and sought views on key considerations for requirements to report material Scope 3 emissions.
It noted that these requirements are included in both the US Securities and Exchange Commission’s draft climate disclosure rules and the EU’s draft European Sustainability Reporting Standards.
In her session at the ESG Summit 2023, Ms Rose will focus on the opportunities presented by ESG and sustainable investing in Australia, the reporting requirements that are afoot, as well as regulatory trends, with a specific focus on benchmarks and data.
She will also address disclosures on Scope 3 emissions, and provide guidance on greenwashing in labelling, terminology, benchmarks, metrics, and screening.
To hear more from Trista Rose around the opportunities and risks in ESG and sustainable investing in Australia, and how to avoid greenwashing, come along to the ESG Summit 2023.
It will be held on 23 March at Aerial UTS Function Centre, Sydney and 29 March at Grand Hyatt, Melbourne.
There are only a few places remaining, so click here to buy your tickets and don’t miss out!
For more information, including agenda and speakers, click here.
