Gearing up for mandatory climate reporting

2 minute read  12.04.2023 Sarah Barker

What do directors need to know about upcoming climate reporting standards? We have teamed up with the Australian Institute of Company Directors and Deloitte to help organisations prepare for the changes.

 

With mandatory climate reporting from the International Sustainability Standards Board on its way, directors need to act now to prepare their organisations. Our new primer guide, jointly produced with the Australian Institute of Company Directors and Deloitte, explores what directors need to know.

5 key takeaways from the guide

1. Mandatory climate reporting is imminent

The first tranche of the International Sustainability Standards Board's sustainability-related financial reporting standards is expected in June 2023. The recent Commonwealth Treasury Consultation Paper on Climate Reporting indicates that mandatory climate reporting will commence in FY25.

2. Reporting will be subject to stakeholder scrutiny

There will be significant scrutiny of organisations’ climate reporting from regulators, investors and other stakeholders.

3. The main elements of the reporting model are clear

The fundamental expectations go beyond the Taskforce for Climate-related Financial Disclosure (TCFD) framework.

4. Early preparation is critical

The implementation time will likely be short, and will require significant board and management focus. Board members should focus on the opportunities, not just risks from heightened disclosure and market comparability.

5. There are key actions to prepare

Boards should act now by reviewing existing governance structures, setting a sustainability and climate strategy and identifying gaps between current and future resourcing, data and disclosure needs.

What are the key questions directors can ask to determine their level of preparedness?

The guide also explores the proposed standards in more detail, how it is a step up from the Taskforce for Climate-related Financial Disclosure (TCFD) framework, the legal risks and the boards evolving role in sustainability and financial reporting.

Our Climate Risk Governance team can help your organisation to navigate through these obligations. Please contact us if you would like to discuss how best we can assist.

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