Australia has been working for a while now to develop and implement mandatory climate reporting and other sustainable finance initiatives. Recently, the Australian Treasury announced its Sustainable Finance Roadmap, laying the groundwork for GHG reporting and other ESG priorities in the financial sector and giving us a look into the future of sustainability in Australia. The roadmap digs into the implementation for Australia’s sustainable finance strategy and states that the government’s priorities are “climate-first, not only.” ESG Today discusses the roadmap’s plans for upcoming climate reporting stating:
“According to the roadmap, the Australian Accounting Standards Board (AASB) is expected to finalize its climate reporting standards in August 2024, the Australian Auditing and Assurance Board (AUASB) is developing assurance standards for climate disclosures in late 2024, and reporting requirements for the first set of companies to be covered by the new rules will commence on January 1, 2025. The Treasury also aims to develop and publish best practice guidance for the disclosure of corporate transition plans by the end of 2025.”
In addition to climate reporting, the roadmap also discusses plans for
- a new sustainable finance taxonomy,
- investment product labels,
- further measures to crack down on greenwashing,
- new climate risk mitigation tools,
- increased sustainability data, and
- government issuance of green bonds.
These policies will form the cornerstones of Australia’s sustainable finance policies and mirror what we’ve seen in the EU and UK. Finance is the bedrock of global industry having clear rules, regulations, and incentives to encourage sustainability in financial markets ripples throughout the wider economy.
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