The Business Council of Australia welcomes the opportunity to provide views on the climate related financial disclosure exposure draft legislation and accompanying explanatory materials.

Our members support continuous improvement in the quality of climate related financial disclosures to facilitate investment decision making that has due regard for climate related risks and opportunities.

It is the BCA’s strong contention that the primary purpose of these new requirements should be to help investors form the most rigorous view possible of climate risks and opportunities as they pertain to investments in corporations.

We also believe that an appropriately calibrated ‘training wheels’ approach is critical to ensuring a successful implementation of the new requirements that serves both users and preparers of disclosures. There is nothing to be gained for users or preparers of disclosures if the new requirements are poorly implemented in Australia.

Imposing obligations and creating legal exposures under the Corporations Act requires certainty about the detailed standards that will apply, sufficient time for investment in systems and auditing capabilities to develop and appropriate liability safe harbours and transitions periods.

You can read our full submission here.