Following a proposal from the Greens, the Australian Government has launched a Senate inquiry into carbon risk disclosure practices.
The terms of reference ask the Senate Economics References Committee to focus on carbon risk disclosure regarding:
- current and emerging international carbon risk disclosure frameworks;
- current carbon risk disclosure practices within corporate Australia;
- Australian involvement in the G20 Financial Stability Board discussions on carbon risk impacts for financial stability;
- current regulatory and policy oversight of carbon risk disclosure across government agencies; and
- any other related matters.
The inquiry follows in the wake of COP21, which saw the establishment of the Financial Stability Board’s (FSB) Task Force on Climate-related Financial Disclosures (TCFD), which will develop voluntary, consistent climate-related financial risk disclosures for use by companies in providing information to investors, lenders, insurers, and other stakeholders.
It provides an opportunity for engagement between industry and policymakers on Australia’s approach to carbon risk management.
The Committee is due to report to the Senate by 22 June 2016.
Submissions are due 31 March 2016.
Further information is available here.