The Business Council supports the implementation of climate financial reporting to better enhance investment decisions in projects linked to Australia’s net zero transition.
Business Council Chief Executive Bran Black said the BCA advocated for a number of changes to the legislation, which was released on Wednesday, and he was pleased the Government listened and amended their approach.
“Climate related financial disclosures will be imperative to allowing more informed decisions on future investments, including attracting and retaining capital in Australia,” Mr Black said.
“Investors and shareholders need certainty and visibility, that companies are managing their climate risks in line with international standards and that projects support the move to cheaper and cleaner alternatives.
“The commencement of the start of 2025 will also give time to some of the nation’s largest companies to adjust to the climate reporting standards.”
The BCA has long called for the Australian Accounting Standards Board (AASB) to be closely aligned with the International Sustainability Standards Board (ISSB) requirements, to keep compliance costs low and similar to other comparable jurisdictions.
