In June 2023, the Australian government released the second consultation paper on climate-related financial disclosure to ensure greater transparency and accountability of large businesses and financial institutions regarding their climate-related plans, financial risks, and opportunities.

The reform principles are designed by the Australian Treasury to:

  • Support climate goals of net zero emissions by 2050,
  • Improve quantity, quality, and comparability of disclosures,
  • Assist businesses, investors, regulators, and the public in having a clear and common understanding about obligations for entities to disclose climate-related financial risks,
  • Align with international reporting practice (e.g. IFRS Accounting Standards),
  • Be scalable and flexible to accommodate future developments in the global baseline,
  • Be allied to risk.