Submission: Australia needs an ambition-raising regulatory landscape
Submission to Climate-related financial disclosure: exposure draft legislation
Climate Integrity welcomes the opportunity to respond to the exposure draft legislation for climate-related financial disclosure.
Summary
As Australia moves towards mandatory disclosures, the Australian Government should be at the forefront of setting an ambition-raising regulatory landscape where credible transition planning is clearly defined, reporting is consistent, and business transition plans can be easily reviewed and verified.
Disclosures should be driving meaningful business action that is science-aligned to ensure real progress towards global 2030 emission reduction goals.
Treasury should be aligning expectations and business guidance with international best practice on transition planning, such as the recommendations outlined in Integrity Matters: Net Zero Commitments By Businesses, Financial Institutions, Cities And Regions.
Recommendations
Climate Integrity’s submission to the climate-related financial disclosure exposure draft legislation focused on the following key areas:
Global alignment and high standards reporting: Legislation covering mandatory disclosures includes enforceable standards on the following to increase transparency, accountability and ensure a high-standard for Australian business transition plans.
No delay to reporting timelines: Any delay in commencement puts at risk the ability to achieve the real and deep business emission cuts needed by 2030, and as such Group 1 reporting should not be delayed another year until 2025.
Science-aligned disclosures: All entities should be required to map a pathway that limits warming to 1.5°C to ensure that businesses do not cherry pick scenarios that continue to favour profit ahead of climate action.
Limit opportunities for delayed action or greenwashing: Remove loopholes that could lead to poor reporting practices or misleading net zero pledges. The liability protections also deny third parties enforcement rights at a time when greenwashing is widespread.
A timely review period: The review period is brought forward to 2027-28, to better ensure that the legislative changes and reporting requirements are fit for purpose, leading to real and deep emissions cuts and climate action to met Australia’s domestic and international emissions reduction obligations and are aligned with the latest science.
