Australian government launches consultation on mandatory climate disclosures

The Australian government has published a consultation paper for climate-related financial disclosures as part of a policy goal of introducing “standardised, internationally‑aligned requirements for disclosure of climate‑related financial risks and opportunities”. The consultation paper covers a wide range of relevant issues including proportional liability, materiality, the expected reported metrics and the international alignment of the proposed disclosures. One of the proposed structures of governance involves the designation of the Australian Accounting Standards Board as the primary body responsible for “developing, making and monitoring climate and sustainability-related risk disclosure standards”. Alternate suggestions include creating a separate sustainability standards board and merging the country’s financial reporting bodies into one entity. The government has invited responses to the proposed governance models and expects to design a detailed proposal in 2023.