The exposure draft legislation for climate-related financial disclosures seeks to amend parts of the Australian Securities and Investment Commission Act 2001 and the Corporations Act 2001 (Cth) to introduce mandatory requirements for large businesses and financial institutions to disclose their climate-related risks and opportunities.

AGL supports the policy position taken by Treasury in mandating climate-related financial disclosures that align with the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards. However, we have some reservations around the proposed structure of entities’ disclosures envisaged by the draft Treasury legislation appears to deviate from the intended principles of the IFRS standards, which may result in less accessible and less comparable disclosures than intended.

AGL recommends renaming the Sustainability report to reflect its scope and content more accurately, and seeks more clarity around the assurance requirements.

Read the full submission here.