The Group of 100 (G100) in collaboration with A4S, CA ANZ and CPAA organised the first of a series of Roundtables on Climate Risk & TCFD, scheduled to take place during FY19/20. The event was hosted by EY in Melbourne and Sydney simultaneously and featured Claire Labouchardiere from ASIC and Kris Peach from AASB as guest speakers. The event focused on Australian regulatory guidance and international developments in corporate reporting.
In August, ASIC released an updated version of its guidance to directors on the preparation of statutory required operating and financial reviews (RG 247) and materials for consideration by directors when making non-financial asset impairment assessments (INFO 203). RG 247 now makes explicit reference to the TCFD as relevant to the discussion of material business risks where climate change may be connected to an entity’s prospects for future financial years.
In releasing these updates, ASIC commissioner John Price reiterated ASIC’s continued oversight focus on developments in corporate climate risk disclosures. Elsewhere, the TCFD recommendations are being referenced as a significant driver of transformation in broader corporate disclosure.
Initiatives such as the Corporate Reporting Dialogue, an alliance including the IIRC, GRI and CDP, is applying the TCFD disclosures as a basis for mapping between their various ESG/ non-financial disclosure frameworks with the objective towards agreement on alignment – and thus, hopefully, better more efficient and rational reporting.
Another topic discussed was the second version of the AASB Practice Statement 2 (Making Materiality Judgements), and the joint Melbourne and Sydney audiences looked at case studies on how this guidance may be applied.
ASIC documents are summarised/listed here.
AASB Practice Statement 2 can be found here.
Terence Jeyaretnam, Partner, Climate Change and Sustainability EY & Chair, G100 Sustainability Working Group told us:
“The G100 Roundtable on Climate Risk & TCFD held on the 10 September took the dialogue to a new level on climate disclosure and management commentary as well as on statutory statement reporting of climate impacts.”