Task Force on Climate-Related Financial Disclosures Effect on Australian Companies

As cited on Gilbert + Tobin, On 21 March 2022, the United States Securities and Exchange Commission (SEC) issued a proposed rule (Proposed Rule) to enhance and standardise the climate-related disclosures provided by public companies including both domestic and foreign private issuers.

It draws on the recommendations of the Taskforce for Climate-related Financial Disclosures (TCFD). Whilst not mandatory in Australia, APRA and ASIC have both cited the TCFD recommendations as being best practices for climate-related financial disclosures. The Investor Group on Climate Change (IGCC) has also called for Australia to make climate-related financial disclosures mandatory. 

What this Means for Australian Businesses

As outlined in the article above, Australian businesses who have securities under the Exchange Act will need to be across these disclosure requirements.

It may not be mandatory now but with the continuous, inevitable Natural Hazards/Climate Risks that are happening not only outside of Australia but in our homeland as well, it is becoming more likely that businesses are being affected and thus, this will push the Government to adopt this rule that will take effect in the financial year 2023.

Make no mistake, where there is physical damage to a company, there is also financial damage. 

A business should not wait for a rule to be made mandatory in order for the company to take action. Instead, the business should be responsible for taking action when it comes to the safety of its assets. Protecting your business today means preparing it for the next 5, 10 or 15 years.

EWN Climate Risk Disclosure Services

When it comes to mitigating the impact of climate risk, the next 10 to 15 years will be critical. The Early Warning Network has a team with expertise in meteorology, climate intelligence and spatial risk, offering round-the-clock monitoring of weather risks for our clients, and our staff are ready to provide the insightful data necessary for organisations to make informed decisions about operations in this 10 to 15 year time period. 

Australia's climate and the associated risk is changing for businesses. EWN's climate risk support platform provides a way for businesses to:

• Identify potential hazards,
• Quantify the future risk and
• Compare to what that risk was in the past.

To discuss how we can help your business call 0493 412 013, email martin@ewn.com.au, or contact us via our enquiry page.