Australia Senate Passes New Mandatory Climate Disclosure Law

A bill introducing mandatory climate reporting for large and medium-sized companies passed the Australian Senate, marking a major step towards the establishment of a new climate risk disclosure framework in the country. The new proposed legislation would introduce climate-related reporting requirements broadly in line with the recently-released standards by the IFRS Foundation’s International Sustainability Standards Board (ISSB), including disclosures on climate-related risks and opportunities, and on greenhouse gas emissions across the value chain. The establishment of mandatory climate disclosure requirements for companies forms the first step in the Albanese government’s sustainable finance strategy, outlined in June with the release of the government’s Sustainable Finance Roadmap, aimed at developing and reforming financial markets to support the mobilization of private capital needed to finance the transition to a net zero economy. Additional priorities under the Roadmap included establishing a sustainable finance taxonomy, and instituting a labeling regime for sustainable investments.

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