Australia Unveils Mandatory Climate Disclosure Rules After Lengthy Consultation
Australia has concluded a lengthy consultation process for its new mandatory climate disclosure regime, which is set to impact both non-financial institutions and asset owners. This move comes as part of a growing global trend, with more countries adopting similar regulations in yahoo finance news.
The consultation, which began in December 2022 and ended in February 2024, seeks to balance the demands of investors, companies, and advocacy groups. Australia joins a list of countries expanding their mandatory climate disclosure regimes, demonstrating a global shift towards greater transparency and accountability in climate-related financial reporting.
The proposed Australian regime has garnered wide-ranging support, although it is not universally endorsed. Key stakeholders, including investors, companies, and foresight groups, have called for clear data sharing, legal compliance, and precise supervisory frameworks. They also emphasize the need for risk-based selection of entities subject to oversight, regular reviews of supervised companies, and alignment with objective criteria focused on risk classification and cross-border activities. These measures aim to strengthen financial integrity, support innovation, and mitigate financial crime risks, with the new regulations set to take effect from 2027.
Australia's new mandatory climate disclosure regime, following a comprehensive consultation process, is poised to enhance transparency and accountability in the country's financial sector. By balancing the needs of various stakeholders and aligning with global trends, this new regime aims to strengthen financial integrity and support innovation while mitigating risks.
