{"id":13030,"date":"2023-06-27T10:27:12","date_gmt":"2023-06-27T10:27:12","guid":{"rendered":"https:\/\/www.esgtoday.com\/?p=13030"},"modified":"2023-06-27T15:37:27","modified_gmt":"2023-06-27T15:37:27","slug":"australia-to-introduce-mandatory-climate-related-reporting-for-companies-starting-2024","status":"publish","type":"post","link":"https:\/\/www.esgtoday.com\/australia-to-introduce-mandatory-climate-related-reporting-for-companies-starting-2024\/","title":{"rendered":"Australia to Introduce Mandatory Climate-Related Reporting for Companies Starting 2024"},"content":{"rendered":"<!--themify_builder_content-->\n<div id=\"themify_builder_content-13030\" data-postid=\"13030\" class=\"themify_builder_content themify_builder_content-13030 themify_builder tf_clear\">\n    <\/div>\n<!--\/themify_builder_content-->\n\n\n<p>The government of Australia is planning to implement mandatory climate-related financial disclosure requirements for companies and financial institutions, according to a new consultation paper launched by the Treasury on Tuesday, detailing and seeking feedback on the proposed reporting rules.<\/p>\n\n\n\n<p>Reporting requirements would apply as soon as 2024 for large businesses, with smaller entities phased in over the following three years.<\/p>\n\n\n\n<p>The consultation paper stated:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\">\n<p>\u201cThe Government has committed to ensuring large businesses and financial institutions provide Australians and investors with greater transparency and accountability when it comes to their climate-related plans, financial risks, and opportunities. As part of this commitment, the Government will introduce standardised, internationally-aligned reporting requirements for businesses to make disclosures regarding governance, strategy, risk management, targets and metrics \u2013 including greenhouse gasses.\u201d<\/p>\n<\/blockquote>\n\n\n\n<p>The announcement follows the release of a \u2018Discovery consultation\u2019 <a href=\"https:\/\/www.esgtoday.com\/australia-plans-mandatory-climate-reporting-for-companies\/\" target=\"_blank\" rel=\"noreferrer noopener\">launched by the Treasury in December 2022<\/a> on the development of a climate risk disclosure framework and plans for mandatory reporting.<\/p>\n\n\n\n<p>The new consultation follows up on the feedback from the initial paper, with detailed disclosure proposals, and seeks input on the workability of the proposed coverage, content, framework and enforcement rules.<\/p>\n\n\n\n<p>The paper notes that stakeholders responding to the initial consultation \u201cwere almost universally supportive of the Government mandating climate-related risk disclosures.\u201d The paper also notes the importance of aligning reporting requirements with international frameworks, highlighting in particular the new standards being developed by the IFRS Foundation\u2019s International Sustainability Standards Board (ISSB). The <a href=\"https:\/\/www.esgtoday.com\/ifrs-releases-sustainability-and-climate-reporting-standards\/\">ISSB released the finalized versions<\/a> of its new sustainability and climate-related reporting standards earlier this week.<\/p>\n\n\n\n<p>Following a similar track as the ISSB, Australia\u2019s proposed climate-related disclosure requirements focus on core elements focus on governance, strategy, details risks and opportunities and metrics &amp; targets. Some specific proposals include a requirement for companies to disclose transition plans, including information on offsets, target-setting and mitigation strategies, processes used to monitor and manage climate-related risks and opportunities, and the use of scenario analysis. The rules would also require companies to report Scope 1 and 2 and material Scope 3 emissions, in addition to industry-specific metrics.<\/p>\n\n\n\n<p>The paper also proposes a phased-in approach to the new climate-related reporting requirements, both by company size, as well as some disclosure requirements that require time to build capabilities and expertise. Larger entities, such as those with over 500 employees, revenues over $500 million and assets over $1 billion, would be covered by the new rules beginning in 2024-2025, with medium-sized companies (250+ employees, $200 million+ revenue, $500 million assets) the following year, and smaller entities (100+ employees, $50 million+ revenue, $25 million+ assets) in 2027-2028.<\/p>\n\n\n\n<p>The proposal also gives entities an extra year to implement Scope 3 reporting, allows time for scenario analysis to transition from qualitative to quantitative, and introduces a 3-year transitional period for enforcement for areas including scenario analysis, transition planning and Scope 3 emissions.<\/p>\n\n\n\n<p>In a statement announcing the launch of the new consultation, Australian Treasurer Jim Chalmers said:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\">\n<p>\u201cOur changes will give companies the confidence, clarity and certainty they need to invest, creating more jobs and opportunities for people in more parts of the country.<\/p>\n\n\n\n<p>\u201cThe consultation paper released today is the next step in delivering the Government\u2019s commitment to ensuring Australia\u2019s large business and financial institutions provide more information and greater transparency on how they are responding to climate change and contributing to the net zero transformation.\u201d<\/p>\n<\/blockquote>\n\n\n\n<p><a href=\"https:\/\/treasury.gov.au\/consultation\/c2023-402245\">Click here<\/a> to access the consultation paper.<\/p><span class=\"et_bloom_bottom_trigger\"><\/span>","protected":false},"excerpt":{"rendered":"<p>The government of Australia is planning to implement mandatory climate-related financial disclosure requirements for companies and financial institutions, according to a new consultation paper launched by the Treasury on Tuesday, detailing and seeking feedback on the proposed reporting rules. Reporting requirements would apply as soon as 2024 for large businesses, with smaller entities phased in [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":13031,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[37,31],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.8.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Australia to Introduce Mandatory Climate-Related Reporting for Companies Starting 2024 - ESG Today<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.esgtoday.com\/australia-to-introduce-mandatory-climate-related-reporting-for-companies-starting-2024\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Australia to Introduce Mandatory Climate-Related Reporting for Companies Starting 2024 - ESG Today\" \/>\n<meta property=\"og:description\" content=\"The government of Australia is planning to implement mandatory climate-related financial disclosure requirements for companies and financial institutions, according to a new consultation paper launched by the Treasury on Tuesday, detailing and seeking feedback on the proposed reporting rules. 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