Embark’s Post

The Government is progressing legislative arrangements for its Mandatory Climate-related Financial Disclosure framework, due to come into effect from 1 January 2025. Last week, ASFI provided our views on the exposure draft legislation. We confirmed broad support across the finance sector for mandatory disclosure in Australia aligned with the International Sustainability Standards Board (ISSB) baseline standards. Our submission also: - noted the need for capability building across the sector to support high quality disclosures; - identified areas where more detailed guidance for reporting entities should be developed; - underscored the importance of implementing sustainable finance reforms in a way that that provides a platform to incorporate other critical sustainability issues over time. The proposed legislation will establish high-level obligations for reporting entities through amendments to the Corporations Act and the ASIC Act. Detailed reporting requirements will be set out in standards being developed by the Australian Accounting Standards Board (AASB), and are currently out for public consultation until 1 March. Read ASFI’s submission: https://lnkd.in/giCJ6wc9 Learn more about the Exposure Draft legislation: https://lnkd.in/gzEV98t6 and the AASB exposure draft standards: https://lnkd.in/gNAQ5GQz #climatedisclosures #sustainablefinance

European Commission consults on Sustainable Finance disclosures On 14 September the European Commission launched a targeted consultation and a public consultation seeking feedback on the Sustainable Finance Disclosure Regulation (SFDR).   Designed to bring transparency, the SFDR was one of the first pillars of the EU’s sustainable finance framework to be put in place. The regulation is, however, not entirely working as intended. That is why the European Commission has launched a comprehensive assessment of the SFDR which aims to ensure legal certainty and that the SFDR plays its part in tackling greenwashing. The consultations are open until 15 December 2023. #sustainablefinance #sustainablefinancing #esg #wealthmanagement #finanaicladvice #financialadvier #financialadvisor

The Sustainable Finance Disclosure Regulation (SFDR), as it stands, is not detailed enough to provide investors with assurance as to what they invest in. Financial institutions have invested significant time and resources in complying with the original SFDR requirements. Therefore, any proposed changes to the SFDR should be carefully designed to ensure that they build on the existing framework, rather than introducing a new set of product categories 🔄 I had the pleasure of speaking with Michael Hurley from Environmental Finance about this a few weeks ago: https://lnkd.in/e7BEyxbJ #SFDR #SustainableFinance #Assurance 

🌲 Preparing for Mandatory #Climate Reporting in #Australia: Is Your Company Ready? The Australian Accounting Standards Board (AASB) has invited feedback on three exposure drafts of climate-related reporting standards ahead of mandatory reporting proposed to commence from 1 July 2024 for large companies. Read our briefing now to understand the legal obligations that will be imposed on companies once the new AASBs come into effect and the questions boards and directors should be asking themselves now. https://lnkd.in/g3AwDxSC Key points to remember ✅  ASRS 1 and ASRS 2, the new climate-related reporting accounting standards are scheduled for implementation starting 1 July 2024. ✅ The standards are legislative instruments, compliance with which will be regulated by ASIC. ✅ A new regulatory body combining the Financial Reporting Council, AASB and ASA will be responsible for oversight of financial reporting, including climate-related reporting. ✅ Large companies (listed, unlisted and NGOs) are expected to be first to be required to report. ✅  Scope 3 reporting requirements are likely to prompt greenhouse gas emissions data input from suppliers to large companies.   Get in touch with Nadia Kalic or Naomi Griffin to find out more. 

Yesterday, the Australian Accounting Standards Board (AASB) released the 'Exposure Draft ED SR1 Australian Sustainability Reporting Standards—Disclosure of Climate-related Financial Information (ED SR1)', ushering in a new era of mandatory climate-related financial disclosures starting 1 July 2024. This regulatory shift carries considerable weight for superannuation funds, as it will inevitably impact their investment portfolios. Pathzero has been at the forefront of this transition, proactively engaging with clients to surface the investment-level emissions profiles of companies and assets in their private market portfolios. For superannuation funds, this is a critical moment to scrutinize not only governance frameworks but also to understand the carbon footprint of their investments. This diligence serves dual purposes: compliance with upcoming regulatory mandates and safeguarding the financial interests of fund members by understanding climate-related risks and opportunities. Should you require specialized briefings to prepare for these upcoming mandatory reporting changes, or need assistance in forming a response to this consultation, we invite you to contact us.

The upcoming Australian Sustainability Reporting Standards—Disclosure of Climate-related Financial Information in Australia are set to play a pivotal role in enhancing #transparency and #accountability in the business sector concerning their environmental impact. These standards are crucial as they mandate organisations to disclose detailed information about their climate-related financial activities, including #financedemissions. [Financed emissions refer to the greenhouse gas emissions associated with investments, loans, and other financial activities.] By disclosing financed emissions, #assetowners and #fundmanagers not only demonstrate their commitment to addressing climate issues but also allow relevant stakeholders to make informed decisions, thereby driving sustainable investment and promoting environmentally responsible business practices. Ultimately, these standards will pay a crucial role in the #transition to a more sustainable and resilient economy in Australia.

The Financial Stability Board (FSB) and the IFRS during COP28 have announced that the TCFD has been disbanded. From 2024, the International Sustainability Standards Board will take charge of climate-related financial reporting. We take a look at the implications for public companies: https://lnkd.in/ecVaEbDb #corpgov #GRC #governance

A reminder on the current EU rules on sustainability and due diligence reporting, the CSRD and the CSDDD. In addition to the EU rules, earlier this month, the SEC finalized rules on climate-related disclosures, including with regards to greenhouse gas emissions and certain climate-related financial statement metrics. Last, in June 2023, the International Sustainability Standards Board (“ISSB”), an entity founded by the IFRS Foundation, finalized its first two IFRS Sustainability Disclosure Standards covering sustainability-related financial information and climate-related disclosures. #csrd #csddd #duediligence #humanrights #supplychains #sustainability #eu #reporting #climateaction #datadriven #ghg #accounting #disclosure #climatemitigation

I'm excited to announce that I have recently obtained my certification as a Carbon Accountant Practitioner powered by trace.     With this new accreditation, I am now equipped to provide expert guidance on carbon accounting, and with changes in mandatory reporting coming do you know where your obligations stand on carbon reporting?   The FSB Task Force on Climate-related Financial Disclosures (TCFD) has confirmed it will be consolidating under the International Sustainability Standards Board (ISSB). Until now the FSB Task Force on Climate-related Financial Disclosures (TCFD) has been the pre-eminent reporting frameworks used for climate-related risk and opportunities globally. With this framework now being subsumed by #issb we have an international standardised reporting framework making IFRS S1 and S2 as the single source of truth.   Whether you're a business striving for eco-conscious financial management or an individual looking to make sustainable choices, I am here to help you navigate the future of carbon accounting. To learn more or if you want to start your journey to #NetZero get in touch today: https://lnkd.in/g6GpNFwg   #TeamPrime #EnvironmentalSustainability #NetZero #BusinessForGood #Sustainability #ProfitWithPurpose