Climate reporting webinar | Debate around national emissions targets

Federal Environment and Water joins speakers’ line-up for Climate Governance Forum 2024

The Hon Tanya Plibersek MP, Minister for Environment and Water, will deliver a keynote at the AICD’s Climate Governance Forum 2024, to be held in Sydney and online on Friday, 23 August. Our research shows more boards are focusing on nature and biodiversity, with over 50 per cent of directors surveyed by AICD believing these pose a material risk for their organisations. However, there is still much to explore about the global 'nature positive' concept, especially with rising expectations around corporate reporting.

The Minister joins a strong lineup of speakers including: Dr Ken Henry AC, Chair of Australian Climate and Biodiversity Foundation; Kate O’Rourke, ASIC Commissioner; Deanne Stewart, CEO of Aware Super; Andrew Stevens, Sustainability Committee Chair, Stockland; Holly Kramer, NED, Woolworths; Dr Ben Caldecott, Co-Head, UK Transition Planning Taskforce; Naomi Edwards, incoming Chair AICD; Jun Bei Liu, Tribeca Investment Partners; Nat Walker, Director, Paul Ramsey Foundation; Philip Foo, Vice President, CGI Glass Lewis; Judy Slatyer, Chair, WWF Australia; and Dr Fiona Wild, Group Climate and Sustainability Officer, BHP – with more to be announced. 

Climate reporting trend strong in ASX 50

New King & Wood Mallesons data show that most ASX 50 companies (96 per cent) have set long-term emissions reduction targets, with two-thirds aiming to achieve these targets by 2050. Additionally, the study revealed that two-thirds of the ASX50 (76 per cent) have established interim targets, typically set for the period between 2025 and 2035.

There is an increasing trend of references to ESG responsibilities in board or board committee charters (82 per cent of the ASX50). On nature, 58 per cent of the ASX50 are aligning with the TNFD recommendations, showing momentum building in this emerging area of stakeholder focus.

Market developments update

• Telstra moves away from carbon credits in favour of stronger emissions target: Telstra announced last week that it will increase its scope 1 and 2 emission reduction target from 50 per cent to 70 per cent by 2030, while retaining its 50 per cent by 2030 scope 3 target. The company will no longer seek certification from Climate Active for offsetting its operations, products, and other brands.
• Investors largely positive about Australia’s climate policy outlook: However, Investor Group on Climate Change (IGCC) members would still like to see the government detail clear timelines for the phase out of coal, oil and gas, and formulate policies to build resilience and adapt to the physical damages of climate.
• Greenwashing Inquiry: The Australian senate standing committee on greenwashing has completed its public hearings. Its report, expected on 28 June 2024, will consider the environmental and sustainability claims made by companies. The report will also examine the impact of misleading claims on consumers, provide domestic and international examples of regulating such claims, review advertising standards, and explore legislative options to protect consumers, among other matters.
• AEMO is not forecasting blackouts: In a speech at Australian Energy Week, Australian Energy Market Operator CEO Daniel Westerman clarified that recent events, such as the complete loss of Victoria’s largest power station due to a transmission tower failure, were not predictions or forecasts of blackouts. Instead, he emphasised that these challenges highlight the need for sustained and ongoing investment in generation, storage, and transmission.
• Green bonds: Australia has issued $7 billion of its inaugural green bond, marking a ‘milestone’ in the development of a local sustainable finance market. The bond serves as a mechanism for attracting global and domestic capital to projects aligned with the Future Made in Australia plan and the country’s transition to net zero emissions.
• Government renewables tender: The Australian government has also announced its largest renewable energy tender to date, inviting investors to bid on 6GW of new projects for the National Electricity Market under the Reliable Renewables Plan. Coupled with the Capacity Investment Scheme, the plan aims to deliver 32GW of renewables and storage by 2030.
• EVs and beyond: Australia’s New Vehicle Efficiency Standard, will apply from 1 January 2025, and is expected to reduce emissions by 321 million tonnes by mid-century and reduce the price of electric vehicles. In Europe, the price of electric vehicles manufactured in China is set to rise, following the announcement of a tariff of up to 38 per cent for Chinese EVs.
• EU poll: Staying in Europe, the EU election results saw increased support for parties on the populist right but are not expected to undo the historic Green Deal package of reforms, according to Carbon Brief. The upcoming French and German elections are being seen as more consequential for climate ambition in the EU.
• Measuring biodiversity: CSIRO has launched NatureIQ, a Software as a Service product designed to assist businesses in assessing and disclosing their impacts on biodiversity. This tool integrates ecological footprint data, provides historical analysis capabilities, and supports scenario planning for effective nature restoration strategies. It is open for early adopter expressions of interest.
• Directors' duties: The responsibilities of directors are increasing globally regarding nature and climate reporting, according to a recent article by Sarah Barker and Simon Learmount, Co-Chairs of the World Economic Forum's Community of Climate Governance Experts.
• Climate finance negotiations continue: Ahead of the UN’s COP29 climate talks in Baku, Azerbaijan, pre-talks are underway in a bid to secure a successful deal in November for climate finance. This finance, provided by large economies to smaller ones, aims to help them adapt to the worsening extreme weather unleashed by climate change.