3 minute read 15 Apr. 2024
A Lone tree growing in a rapeseed field

The two sides of governance in climate-related reporting

Authors
Meg Fricke

Sustainability Disclosure Hub Leader and EY Oceania Partner, Climate Change and Sustainability Services

Environmental scientist and economist passionate about transforming and integrating sustainability into business strategy, building robust and transparent disclosures and making the world work better.

Nicky Landsbergen

EY Oceania Sustainability Disclosure Hub Leader; Partner, Climate Change and Sustainability Services, Ernst & Young

Passionate sustainability professional, transforming the way business values its connection to society and the environment. Always searching for a new destination to discover.

3 minute read 15 Apr. 2024
Related topics Sustainability Climate change and sustainability Climate-related reporting Nonfinancial reporting Assurance
Upvote

Show resources

Australian companies are on the verge of being required to publicly disclose their governance processes over climate-related risks. Good governance will play a central role in the transition.

In brief:

  • Multiple factors, including consumers buying less insurance to offset the higher cost of living, are making digital transformation essential in the sector.
  • In an environment of unprecedented change and uncertainty, insurance leaders must mobilise their people to adopt new tools and ways of working.
  • New lessons from the 30% of transformations that do succeed suggest how the sector should be approaching transformation and the questions insurers must ask.

The introduction of a mandatory climate-related financial disclosure regime in Australia (for financial years starting on or after 1 January 2025) will require companies to disclose how climate-related issues are embedded within their governance approach, along with their strategy, risk management, and metrics and targets.

The two sides of governance in climate-related reporting explores the role of governance in two dimensions:

  1. Governance of climate risks and opportunities as required by the proposed Australian Sustainability Accounting Standards (ASRS standards)
  2. Governance of reporting to enable robust disclosure and manage reporting risk For many organisations, the transition represents a significant uplift in the amount of disclosures that an entity must make.

Show resources

  • Download the two sides of governance in climate-related reporting here

    pdf (2 MB)

Summary

The EY Sustainability Disclosure Hub offers practical guidance to assist companies across the region prepare for mandatory reporting of climate and sustainability-related reporting. Please reach out to our Sustainability Disclosure Hub team to discuss what the requirements in the exposure draft mean to you.

About this article

Authors
Meg Fricke

Sustainability Disclosure Hub Leader and EY Oceania Partner, Climate Change and Sustainability Services

Environmental scientist and economist passionate about transforming and integrating sustainability into business strategy, building robust and transparent disclosures and making the world work better.

Nicky Landsbergen

EY Oceania Sustainability Disclosure Hub Leader; Partner, Climate Change and Sustainability Services, Ernst & Young

Passionate sustainability professional, transforming the way business values its connection to society and the environment. Always searching for a new destination to discover.

Related topics Sustainability Climate change and sustainability Climate-related reporting Nonfinancial reporting Assurance
Upvote