Most senior finance executives agree that the economic impact of climate change cannot be ignored – but less than half say Australia’s financial markets are doing anything about it.
According to a Roy Morgan opinion poll conducted last month of senior fellows and fellows of the Financial Services Institute of Australasia (Finsia), almost nine in ten Finsia members agreed with the broad sentiments of the high-profile Stern Report.
The British report released last year said doing nothing to stop global warming will prove far more costly to the global economy than taking measures to fight it.
However, only 43 per cent of those surveyed said the market is factoring environmental, social and governance risk into the long-term sustainability of Australia’s economy to some extent.
Twenty-nine per cent believe there is little or no consideration given to these risk factors.
Most of those surveyed (86 per cent) want ASIC or another body such as the Australian Securities Exchange (ASX) to give financial services providers some guidance on report on sustainable risk.
Fifty-four per cent supported a mandatory reporting requirement, while 70 per cent said this should be voluntary.
“Industry must take the initiative and assume some responsibility for working with Government and regulators to find the most effective, flexible and balanced response to building sustainability measures into our investment decisions,” Finsia chief executive Brian Salter said.
Speaking at a Finsia event last night, Parliamentary Secretary to the Treasurer Chris Pearce said the government was also very aware of the issues surrounding corporate social responsibility.
He noted the high number of those surveyed who believe ASIC or the ASX should provide guidance on sustainability reporting.
