The Business Council of Australia (BCA) has called for a delay of the implementation of significant changes to financial reporting and disclosure standards. The BCA has requested the delay to allow companies to gain their climate "training wheels."
The federal government’s proposed new Climate Disclosure mandate requires companies to publicly report on their exposure to climate risks and opportunities, as well as their actions to manage them.
However, the government is contemplating a potential delay in the start date, from July 1 to January 1, 2025, in response to the pushback.
A recent survey from the Climate Governance Initiative revealed that almost three-quarters of directors surveyed expected to be subject to mandatory climate reporting feel ‘somewhat’ or ‘well’ prepared. Yet, less than half of listed and a quarter of unlisted companies had a transition plan and targets.
Notably, companies more adept at accommodating investor and consumer expectations have transferred the climate function from the marketing department to the chief financial officer's responsibilities.
Kurt Winter, the corporate transition director at the Carbon Market Institute, cautioned against watering down regulations so that any delays do not result in a longer lead time before companies become accountable.
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Source: https://www.msn.com/en-au/money/news/smaller-end-of-town-not-ready-for-climate-red-tape/ar-BB1jjkq8
