Australian Financial Services Industry Backs Climate Disclosure Consultation

The Australian government has commenced a consultation process with the country’s financial services industry to introduce standardised, internationally affiliated reporting requirements for businesses to report on the physical and transition risks from the impact of climate change.

In a statement on its website, The Financial Services Council (FSC) said it welcomed the Federal Government consultation as well as the government’s commitment to a Sustainable Finance Agenda.

Acting CEO of the FSC Spiro Premetis said: “The FSC is pleased the Government is moving forward with its election commitment to introduce climate-related financial disclosure standards in Australia and the Treasury consultation paper released today is an important initial step.

“The FSC has been calling for a mandatory climate risk reporting regime which would require companies to report climate-related financial risks and opportunities.”

“Having consistent and globally interoperable reporting of climate risk across Australian companies is vital in ensuring that investment decisions can be made in the best long-term financial interest of Australians.”

Premetis added: “The investment community sees climate change as a financial risk to their investment portfolios, and a risk to the savings of millions of Australians.”

“A mandatory climate risk reporting regime is needed if Australia is to meet its national emissions reduction targets. It will lead to better quality and more consistent disclosures across the economy and a more efficient allocation of capital toward sustainable investments.”

“The FSC looks forward to continuing to work with the Government on the development of the reporting regime as well as the development of its sustainable finance agenda. Combatting greenwashing and reaching greater data-driven consensus on what constitutes sustainable investment will lead to more efficient capital flows in Australia.”

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