(9 January 2024 – Australia) While Australia’s new mandatory climate reporting legislation has commenced this month, the federal opposition has vowed to repeal the new laws as US President Elect Trump’s influence widens.
The legislation came into force on 1 January requiring large companies to disclose emissions generated by suppliers, customers and how a warming planet may impact their balance sheet alongside annual financial reporting.
The law requires large corporates to publish an annual “climate statement” that outlines material climate risks they may face and their Scope One, Two and Three greenhouse gas emissions. Traditionally the responsibility of sustainability divisions, companies are restructuring to adapt to the new regime.
“When it’s happening in a voluntary space, it’s been a case of best endeavours. Now, good practice has it changing from just sustainability staff being involved to much more multidisciplinary teams forming. Even to the point where there are multidisciplinary management executive committees that are being set up that then report through to sustainability committees. So that shift, both at management and board level, is certainly occurring” stated KPMG Partner for Climate Change and Sustainability, Julia Bilyanska.
Federal Shadow Treasurer Angus Taylor declared that the Coalition was committed to unwinding the laws if it won the next election which must be held by May 17.
“These laws will make it harder for Australia’s farmers, manufacturers and miners to attract capital, insurance and financial services while reducing the competitiveness for international companies to invest in Australia. These were bad laws when they passed the parliament, and they are even worse with a new administration in the US signalling a further wind back of comparable reporting schemes” Mr Taylor said.