Climate Horizons | REPORT AND PUBLIC EVENT | June 2018

More Australian companies are considering in detail what the Paris Agreement on climate change means for their business strategy, but serious deficiencies in consistency and quality remain in modelling impacts of climate change and responses to it, concludes CPD’s latest research released today on 18 June 2018.

Climate Horizons, written by Sam Hurley and Kate Mackenzie, and featuring inputs from ClimateWorks Australia, comes twelve months after the report of the Financial Stability Board’s Taskforce on Climate-Related Financial Disclosures (TCFDs) was handed down. It outlines how companies, regulators and policymakers can build on recent progress and catch up to the sustainable finance agenda abroad.

Key recommendations:

–  New guidance on climate risks by ASIC, the RBA and other regulators to support momentum for better disclosure of climate-related risks by Australian companies and investors.

–  Close monitoring of climate-related financial disclosures over the next 12 months to assess the case for more demanding mandatory reporting requirements.

–  A systematic review of sustainable finance in Australia drawing on an emerging global policy agenda that connects green finance with a wider range of sustainability-related challenges and opportunities.

 

https://cpd.org.au/wp-content/uploads/2018/06/TCFD-BoE-Conference-on-Climate-Scenarios-What-are-scenarios_.mp4

 

Climate Horizons will be discussed tonight in Sydney at a CPD forum on financing a sustainable economy, which will feature a keynote address by ASIC Commissioner John Price.

 

Key documents








Full report
 Executive summary
 Media release 




Media coverage

Companies still lagging on modelling and disclosing impacts of climate change, Alice Uribe, Australian Financial Review, 18 June 2018.

Companies still lagging on modelling and disclosing impacts of climate change – more government and regulatory action is required, Lisa Cox, The Guardian, 18 June 2018.

Australia outpaced by sustainable finance agenda, Travers McLeod, The Guardian, 18 June 2018.

Australian shareholders should be told of climate risks to profits, says think tank, Gareth Hutchens, The Guardian, 29 November 2017

Key links and related reading

Final report of the Senate Inquiry into the implications of climate change for Australia’s national security, 17 May 2018.

Report of the Financial Stability Board’s Taskforce on Climate-Related Financial Disclosures (TCFDs), June 2017.

Task Force on Climate-related Financial Disclosures Public Consultation Summary, April 2017.

Australia’s new horizon: Climate change challenges and prudential risk, Geoff Summerhayes, February 2017

Australia’s new horizon: Climate change challenges and prudential risk, John Price, June 2018

CPD roundtable on directors duties, climate risks and sustainability, October 2016

Legal opinion on directors duties and climate change, Noel Hutley SC and Sebastian Hartford-Davis, October 2016

CPD submission to the Inquiry into the Implications of climate change for Australia’s national security, August 2017.

Australia’s top companies ignore climate change, and we let them, Julien Vincent, The Sydney Morning Herald, 10 December 2017

Australian shareholders should be told of climate risks to profits, says think tank, Gareth Hutchens, The Guardian, 29 November 2017

Carbon risk: a burning issue, Senate Economics References Committee report, April 2017

Final Recommendations Report, Task Force on Climate-related Financial Disclosures, June 2017

CPD Submission to the Senate Foreign Affairs, Defence and Trade References Committee Inquiry into the United Nations Sustainable Development Goals, Sam Hurley, April 2018.

 

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