Submission to the Climate-related Disclosures Second Consultation Paper

In July 2023, the Australian Treasury invited feedback on its second consultation paper on Climate-related Disclosures. ASFI supports the introduction of mandatory climate disclosures for the Australian market. A robust and workable climate disclosures framework will help financial institutions make better decisions, firms understand and manage climate risk and opportunity, and regulators combat greenwashing. A key plank of the sustainable finance policy architecture, climate disclosures will ultimately support capital allocation consistent with Australia’s national emissions reduction and adaptation goals.

ASFI is broadly supportive of the positions set out in the Consultation Paper, including the proposal to align with ISSB standards where possible. In our submission we outline some considerations for how the framework would and should apply to financial institutions, and how comparability and quality of reporting can be enhanced. We also make brief comments on some aspects of how the disclosures regime relates to broader policy settings including transition plan guidance, provision and management of data, digitisation, and the Australian sustainable finance taxonomy.

Read our submission here.