G100 virtual forum COP 26: Implications for the finance and accounting profession

G100 Virtual Forum on COP 26: A briefing for the finance and accounting profession organised by the G100 Sustainability Committee. This will be the fourth and final forum for 2021.

 

The 26^th Conference of Parties to the United Nations Framework Convention on Climate Change is the first critical meeting since the 2015 Paris Agreement (COP 21) under which signatories are required as part of an ambitions cycle to recommit to a ratcheting-up of emissions reduction targets.

 

The first two days of COP 26 held in Glasgow, hosted by the UK and Italian governments, were devoted to presentations from world leaders. For Australia, this has been somewhat of a ‘mixed bag’ with commitments to cease deforestation by 2030, though accompanied by a decision not to embark on a program of aggressive methane emissions reduction. In the latter, joining countries such as China, Russia, India and Iran. More generally, Australia’s emissions reductions goals both to 2030 and through to 2050 continue to attract criticism both at home and abroad  - particularly within the European Union.

 

In contrast, day three of COP 26 Financing for the future delivered two key outcomes critical to the global finance and accounting communities.  The first is the announced establishment of the International Sustainability Standards Board (IASB) formed under the IFRS Foundation, and sitting alongside the International Accounting Standards Board, to develop a comprehensive global baseline of sustainability reporting standards under robust governance and public oversight. Australia was one of thirty-eight countries/ jurisdictions whose Finance Ministers endorsed at COP 26 this announcement, Treasurer Frydenberg having earlier on 24 September in a speech to the AIG welcomed in very positive terms this initiative. The second key announcement by Mark Carney, UN Climate Envoy and former Governor of both the Bank of Canada and Bank of England, of the establishment of the Glasgow Financial Alliance for Net Zero (GFANZ), an alliance of 450 banks, funds managers and wealth managers aimed at the further acceleration of decarbonisations of the global economy. And to quote Mark Carney: “we now have the essential plumbing in place to move climate change from the fringes to the forefront of finance so that every financial decision takes climate change into account.”

 

Despite what might be seen as failures of political will and foresight, the business, finance and regulatory communities are getting on with the urgent task at hand. Joint us for this briefing from leading members of Australian regulators, financial institutions and professional services, who will discuss the implications of these momentous developments for Australian business and its international competitiveness.

 

The Virtual Forum on COP 26 will explore:

 

 

Welcome: Martyn Roberts - Deputy Chair Group of 100

 

Introduction to COP 26 briefing for the finance and accounting profession – Terence Jeyaretnam EY

 

Guy Debelle – Deputy Governor, Reserve Bank of Australia (accepted)

Graham Sinden – Head of Climate Risk, Australian Prudential Regulation Authority (invited)

Emma Herd  - Partner, Climate Change and Sustainability, EY Oceania (accepted)

Mark Joiner – Chairman, QBE (invited)

 

Q&A moderated by Terence Jeyaretnam

G100 is keen to engage the Financial Function, and accordingly we are hoping that both the sustainability and finance professionals will attend. Governance, General Counsel and Corporate reporting functions are also most welcome.