Business Council of Australia Advocates for 1-Year Delay in Mandatory Climate Reporting Requirements

The Business Council of Australia (BCA) has voiced its support for a one-year delay in the implementation of mandatory climate reporting requirements. The council emphasizes the importance of continuous improvement in the quality of climate-related financial disclosures, aligning closely with international standards.

BCA Chief Executive Bran Black underscores the need for a robust climate-related financial disclosure framework, asserting that providing investors with a comprehensive view of climate risks and opportunities is crucial for making informed investment decisions. The proposed delay aims to ensure a well-calibrated and successful implementation that serves the interests of both users and preparers of disclosures.

According to Mr. Black, aligning Australian Accounting Standards Board (AASB) standards with the International Sustainability Standards Board (ISSB) standards is pivotal for enabling valid comparisons across corporations in different jurisdictions while keeping compliance costs manageable.

The BCA proposes a commencement date that allows a minimum of 12 months from the proclamation of legislation or the publication of AASB standards (whichever is later) before mandatory compliance comes into effect. Mr. Black emphasizes the significance of taking the necessary time to ensure a flawless implementation rather than rushing and risking potential failures.

The BCA's stance reflects a commitment to fostering a reporting framework that not only meets domestic standards but is also harmonized with international best practices. The proposed delay is framed as a strategic move to enhance the effectiveness and alignment of Australia's climate-related financial disclosure requirements with global benchmarks.

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