(18 January 2024 – Australia) Company executives could face legal action if they do not publish credible emissions forecasts according to new laws proposed by the Australian federal government.
The laws would require corporates to publish an annual sustainability report including emissions and other climate-related details. The new reporting regime would be phased in until 2027 with directors liable for the accuracy of the figures in the same way they are already responsible for the accuracy of standard financial reporting.
“It would be disproportionate to heavily penalise businesses for disclosures on potential future outcomes and uncertainties that end up inaccurate as a result of factors beyond their control” the Australian Chamber of Commerce and Industry said in its submission.
“The changes will give investors the transparency, clarity and certainty they need to invest in new opportunities as part of the net zero transformation” commented Federal Treasurer Jim Chalmers.