Latest reports suggest that the Albanese administration in Australia is considering plans that would require banks and other large corporations to tell the public what they are doing to reduce emissions.
The government is also searching for measures to combat “greenwashing,” which occurs when companies exaggerate their environmental policies in an effort to win over customers.
In a speech, the treasurer, Jim Chalmers, said that Australian businesses “need to make credible disclosures to stay competitive in global capital markets.”
“There’s now broad acceptance that proper disclosure of these financial risks and impacts isn’t a nice-to-have extra,” he said. “This information is need-to-know – essential to mobilising the weight of our financial system behind the net zero transition.”
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On Monday, the treasury is expected to publish a consultation document on the creation of an Australian mechanism for disclosing climate risk, as reported by the Guardian.
According to reports, the government contended that in order for businesses and investors to manage climate risks and invest in new possibilities, they will need clarity and confidence.
The government further stated that the reporting requirements are expected to be mandatory for large entities and phased in over time. It also plans to apply “appropriately tailored requirements to comparable commonwealth public sector corporate entities and investment funds”.
Story was adapted from wionnews.
