The Australian Institute of Company Directors (AICD) in partnership with Deloitte and MinterEllison, has launched a major resource to help organisations prepare for the landmark introduction of Mandatory Climate Reporting.
The shift to mandatory climate-related disclosures represents the biggest change to corporate reporting in a generation and integrating climate disclosures into financial reporting needs to be carefully managed.
“This generational shift in corporate reporting will require leadership and focus from the boardroom down. Remaining profitable and competitive in a decarbonising economy is a key strategic challenge and opportunity for Australian business,” said AICD Managing Director and CEO Mark Rigotti.
This will require the prioritisation of up-skilling across boards, organisations and the economy as a whole.
“Boards have to think holistically about where climate-related risks and opportunities lie and how to measure and manage them. It’s no longer enough to simply leave climate with sustainability teams – mandatory reporting will require extensive engagement throughout the entire organisation,” said Deloitte Australia Climate Governance lead Rebekah Cheney.
Increasingly Australian directors need to understand climate and sustainability risks and opportunities, not just to oversee the preparation of corporate reports, but more fundamentally to shore up the future of their businesses.
“External scrutiny has never been higher and directors will need to get comfortable signing off on complex disclosures. Climate targets should be realistic and supported by an evidence-based transition plan,” added Partner and head of Climate & Sustainability Risk Governance at MinterEllison Sarah Barker.
More than merely a compliance exercise, reporting can be a chance to integrate climate considerations into strategic decision-making, build organisational resilience, and drive sustainable practices.
The Mandatory Climate Reporting Guide is designed to assist directors, their boards and organisations navigate this new and challenging terrain.
The Guide has been informed by extensive consultation with government, industry experts and the director community. It provides recommendations and practical steps to prepare for climate reporting now.
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