The Australian Government has introduced draft legislation to enhance Australia’s economic prospects through cleaner, cheaper, and more reliable energy and mitigating climate change risks.
The changes will establish a climate risk disclosure framework, providing transparency and clarity for investors and companies to invest in new opportunities in the net zero transition.
The draft legislation amends the Australian Securities and Investment Commission Act 2001 and the Corporations Act 2001 to introduce standardised, internationally-aligned reporting requirements for businesses.
According to the Federal Government, this step enhances a robust financial system for investors and companies.
The Government noted it is adopting a balanced approach to these changes, involving consultation with industry, investors, academics, and regulators.
The draft legislation enables companies to enhance their capacity to produce high-quality climate risk disclosures by introducing early visibility of proposed reporting requirements and expanding reporting scope over time.
The consultation for the draft legislation, which was released today, is now open, with submissions expected to close on 9 February 2024.
