Program and speaker announcements for Climate Governance Forum 2024

In this newsletter, we announce the program and first speakers for the AICD’s Climate Governance Forum 2024, to be held in Sydney on Friday, 23 August 2024. The program covers the most pressing climate issues affecting Australian non-executive directors in all sectors and features an exciting mix of leading directors, international and local experts, and major investors.

We also offer directors the opportunity to participate in a discussion on mandatory climate reporting, including guidance on what directors can do to prepare for these significant new requirements and understand investor expectations. Is your board ready? Join the AICD’s free webinar on 19 June 2024 to find out, featuring Penny Bingham-Hall FAICD, Chair, Vocus and non-executive director, Fortescue; and Ed John, Executive Manager, Stewardship, ACSI.

Also, this month:

• Secure your place in AICD’s climate short course – now monthly;
• The Federal Budget commits $22.7 billion to the Future Made in Australia package;
• Corporate climate transitions are under the spotlight after the Woodside AGM vote;
• Australia’s Future Gas Strategy; and
• G7 nations agree on a coal exit deadline.

Corporate climate transitions under the spotlight in AGM season

Increasingly, advice to companies is that Climate Transition Action Plans are no longer a ‘nice to have’ but rather, an important marker of an organisation’s commitment to decarbonisation and evidence of its resilience in a decarbonising economy.

In the most recent AGM reporting season, corporate climate transitions were thrust into the media spotlight when 58.4 per cent of Woodside Energy’s voting shareholders rejected the company’s Climate Transition Action Plan. The vote’s defeat raised the important – and timely – question: What makes for a 'credible' company transition? Read our article.

The Federal budget has also earmarked funding this financial year for Treasury to develop transition planning guidance for boards, signalling increasing policy focus on this complex area.

Australia’s Future Gas Strategy

Ahead of the budget, the Australian Government released its Future Gas Strategy which identifies that additional gas investment and supply will be needed to avoid supply gaps in the domestic market and ensure sufficient supply for households, power generators and industry. In her foreword, Resources Minister Madeleine King said, ‘natural gas is needed through to 2050 and beyond, though its production and use will change over this period.’

The Strategy was well received by business groups, with Ai Group saying it sensibly acknowledged two truths: ‘Maintaining reliable and affordable natural gas supply is vital along the way to net zero; and so is cutting demand for natural gas through efficiency, electrification and fuel switching.’ It was criticised by some energy analysts, including the Institute for Energy Economics and Financial Analysis which questioned the validity of the Analytical Report underpinning the strategy.

At a Climate Action Week Sydney event, Professor Rod Sims AO from The Superpower Institute, said extending the role of gas beyond 2050 risked contradicting the Future Made in Australia Act.

Market developments update

• Earlier this month, G7 nations released a communique committing to ‘phase out existing unabated coal power generation in our energy systems during the first half of 2030s, or in a timeline consistent with keeping a limit of 1.5°C temperature rise within reach.’
• The International Energy Agency finds surging investment in manufacturing of clean energy technologies is supporting economic growth. In 2023, clean technology manufacturing comprised around four per cent of global GDP growth and 10 per cent of global investment growth.
• On budget day, Federal Treasury published the Future Made in Australia National Interest Framework. The 32-page document sets out the role for government in providing economic incentives to catalyse private sector investment and is structured around two streams: Net zero transformation and economic resilience and security.
• The Australian Financial Review reports Rio Tinto executives will be incentivised to reduce carbon emissions, deliver decarbonisation projects, and integrate decarbonisation activity into value creation.
• A case study involving Telstra reveals ‘climate clauses’ are being rolled out to major suppliers which make up 80 per cent of the company’s supply chain spend.
• Chapter Zero New Zealand releases a directors’ guide to Effective climate governance – remuneration and incentivisation.
• Public submissions are invited on the National Greenhouse and Energy Reporting (NGER) scheme, until 24 May 2024.
• Australia is host of the first Global Nature Positive Summit. Expressions of Interest have opened for site visits which will be a key component of the summit program.

AICD climate short course goes monthly!

The AICD’s Climate Governance for Australian Directors short course is a four-week facilitated course delivering comprehensive insights into the developing climate-related obligations and opportunities for directors in Australia. The first courses have been well received from participants and have sold out quickly. The course is now running monthly. Secure your place.

Get up to speed with our free climate E-learning module

The Introduction to Climate Governance e-learning module is free for members and is a valuable starting point on a director’s climate governance journey.