Climateworks works with a variety of corporations and business associations to encourage effective business reporting on climate risks, opportunities and credible transition plans. We are currently engaging with leading Australian corporations, national public and third sector stakeholders, and international initiatives involved in the development and assessment of credible net zero emissions transition plan frameworks. This work ensures we have an excellent knowledge base to advise on how businesses can implement climate-related financial disclosure in the Australian context.

We strongly support mandating climate-related financial disclosure for corporations in Australia. Many aspects of the current Treasury proposal are key to drive transparency, rigour and comparability. In particular, the alignment with the International Sustainability Standards Board (ISSB).

Climateworks recommends several amendments to the proposals, including:

• full alignment with ISSB’s recommendations as a minimum
• a more ambitious phased approach with more support and flexibility
• the use of country- and sector-specific scenarios and
• stronger disclosures of credible transition plans.

We also highlight that the direct connection between climate and nature has resulted in some corporations and financial institutions considering a wider number of environmental factors when assessing financial risks and opportunities. Australia introducing mandatory climate-related financial disclosure creates a non-to-be-missed opportunity to prepare corporations for the anticipated arrival of nature-related financial disclosure.