The BGA Australia Team, led by Managing Director Michael “Mick” McNeill, wrote an update to clients on the Australian government’s new climate legislation.

Context

  • The Australian government has released draft legislation to establish mandatory climate-related reporting requirements for large- and medium-sized companies. The proposed legislation amends the Australian Securities and Investment Commission Act 2001 and the Corporations Act 2001.
  • The new reporting regime would be phased in over the next three financial years, after which directors would be liable for the accuracy of reporting. The proposed laws will align Australia with recent reporting developments in the United Kingdom, United States and European Union. Treasury is seeking feedback by February 9.

Significance

  • The proposed amendments would require disclosures relating to climate-related risks and opportunities and greenhouse gas emissions across the value chain. The discovery consultation December 2022-February 2023 informed the government on the development of a climate risk disclosure framework, and a design consultation June-July 2023 made similar updates with industry and businesses.
  • The new legislation also proposes introducing assurance requirements for climate-related reporting similar to those for financial reports, such as requiring companies to obtain assurance reports from their financial auditor.

Implications

  • Treasurer Jim Chalmers believes the requirements would improve transparency, help investors and companies make more informed investment decisions and lay the foundation for a stronger, more robust financial system. Around half of ASX200 companies provide some form of climate disclosure and around 70 percent have a net-zero commitment. Chalmers, however, has argued government leadership on climate reporting is needed to encourage investment.
  • Changes will apply to public companies and large proprietary companies required to provide audited annual financial reports to the Australian Securities and Investments Commission (ASIC).

BGA will continue to keep you updated on developments in Australia as they occur. If you have any questions or comments, please contact BGA Australia Managing Director Michael “Mick” McNeill at mmcneill@bowergroupasia.com.

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Managing Director

Mick is a highly-experienced government relations expert and trusted advisor on consensus building, conflict resolution and legislative developments. He has played an integral role in helping parties achieve desired outcomes in areas of national security, health policy, foreign policy and reputational crisis management, as well as media relations, communications campaigns, immigration and human rights. Mick has two decades’ experience working with government as a media analyst, political adviser and NGO advocacy manager. After a stint serving as an adviser to an Australian senator, Mick took on the role of the locally engaged senior political specialist at the U.S. Embassy in ... Read More