Traace’s Post

Are you across the new mandatory climate disclosure rules coming to Australia from 2024? They'll require listed companies and financial institutions to report climate risks, opportunities & targets. This will significantly boost transparency. The Practical Law Corporate team is staying on top of everything ESG to keep you informed and Senior Lawyer Writer, Kimberley Arden, has outlined the key developments to catch you up. Legal teams have a crucial role to play in advising on compliance and disclosure requirements. Practical Law can help – download your free ESG and Sustainability Toolkit here https://lnkd.in/gagjhBJi

Here's a quick clip of yours truly letting you know about some of the resources we have at Thomson Reuters Legal Australia to help you prepare for the highly anticipated mandatory climate-related financial disclosure requirements that are on the horizon!

Australia has passed a mandatory climate reporting law, requiring large and medium-sized companies to disclose climate-related risks, opportunities, and Scope 1, 2, and 3 emissions, in line with the ISSB standards. Key requirements include:  🔹 Timeline: Companies with 500+ employees, $500M+ revenue, or $1B+ in assets will begin reporting in January 2025, with medium-sized companies following in July 2026, and smaller companies in July 2027.  🔹 Scope 3 emissions: Companies will have an extra year to report on value chain emissions, with three years of protection from litigation related to these disclosures.  🔹 Assurance: Phased approach leading to reasonable assurance for all climate disclosures, with standards being developed by AUASB in late 2024. 👉 Read news by ESG Today: https://lnkd.in/eyYcYiuK  👉 View the legislation: https://lnkd.in/grfRYUcV #CorporateSustainability #ClimateReporting #Scope3 

🔔 ESG news! In a major shake-up to businesses' obligations relating to human rights, environmental standards, and climate change, the Corporate Sustainability Due Diligence Directive is set to become law. Our dedicated CS3D Explainer Series is here to help.

AGG Litigation and Environmental partner Rebecca Davis and AGG Real Estate of counsel Caroline Magee were quoted in a Corporate Compliance Insights article titled “Alive & Kicking: The Future of ESG.” The article explored the U.S. regulatory effort to bring clarity for investors regarding companies' environmental claims and challenges the effort faces amid international directives. It also shares insight on how companies are responding to regulatory pressures and the impending outcome of legal challenges to the SEC’s new climate disclosure rules. https://lnkd.in/exjp8K22

Major Milestone for Climate Reporting in Australia In our June newsletter, we touched on the impending changes, and yesterday, the Government's bill to implement climate-related financial disclosures passed through Parliament, setting the stage for mandatory reporting in Australia starting January 1, 2025. The bill will go back to the House of Representatives for two final amendments, but it’s expected to pass without further changes. While these reporting requirements will initially focus on the largest entities in the economy, their impact will ripple through to small and medium-sized businesses within the supply chain. These companies will face growing pressure to track and report sustainability data to support those directly affected by the new regulations—or risk missing out on valuable opportunities. While it may seem an arduous task, understanding and managing your sustainability impact isn’t just about meeting compliance standards; it can enhance your business’s value and provide a significant competitive edge. Again, the key is to embed it into your normal business practices rather than leave it sitting off to the side and that requires getting a better understanding of the risks and opportunities. A lot of groundwork has been done in preparation for this legislation, and while there is some overlap, it does represent a change from standard sustainability reporting as companies need to not only look at their impact on the environment, but look at the impact of climate change on their business and operations across the short, medium and long term. So if you need a briefing on how these changes could affect your business and how best to prepare, please don’t hesitate to reach out. Now, we await the upcoming second-round consultation paper on potential carbon leakage policies which will have major ramifications for our imports in certain industries.

What is the ripple effect on other smaller companies related to Australia's new law requiring mandatory climate reporting for companies? A new set of #transparent #reporting requirements are needed support this new #law. #ESG #sustainability #cpaaustralia #IPA #CIMA #CGAM #aicpa #accountants #ethics https://lnkd.in/gGFvcSKY

What do you think of when you hear "ESG Regulation & Litigation"? For me, it usually brings up terms related to corporate responsibility: environmental impact, greenwashing, compliance, certifications, anti-bribery/corruption, etc. What doesn't immediately spring to mind, but is increasingly at the forefront, is actually the responsibility of regulators and standard setters, and how well they can stand up to legal challenges. This is a global theme seen across ESG regulation: - In the US, almost as soon as the SEC released its mandatory sustainability disclosure framework, they were taken to court and the regulation has been suspended for a year - The CSRD regulation was watered-down significantly in order to pass in the EU Parliament (as was the SEC regulation) - ESG rating agencies, key players in quantifying corporate ESG risks & opportunities, are facing a challenge to their reliability & transparency in the EU which will likely impact their corporate engagement globally I find this topic absolutely fascinating and am integrating this more and more in my Environmental Law studies (working at Nossa Data certainly helps with that!). One key thing I've found so far is that, more often than not, courts will only pass regulation if the standards themselves have been ratified by the government / Parliament presiding over the regulation. For instance, while having a mandate to create the standards and opened up its drafts to public consultation, the SEC doesn't appear to have gotten the drafts ratified federally before publishing them and this is likely why it's now having to defend itself in court. For more background, you can read up on how the SEC is being attacked from all sides below: - Corporate lawsuit(s): https://lnkd.in/eVu6ysgV - Environmental NGO lawsuit: https://lnkd.in/eeqyFza8 #esg #regulation #usa #eu #sec #csrd

Environmental, Social, and Governance (ESG) considerations are becoming increasingly pivotal, leading to escalating complexities for both corporations and investors. Amid tightening ESG disclosure requirements from financial institutions, evolving regulatory landscapes both domestically and internationally, and political headwinds, companies and investors face a series of intricate challenges. Attorneys are called to provide guidance in the midst of a dynamic legal framework, with the Securities and Exchange Commission and Federal Acquisition Regulation Counsel pursuing separate rules for climate change related disclosures. Internationally, the European Union has approved and been implementing its own ESG reporting requirements. This Spring Conference panel aims to explore these complexities, diving into both the legal and practical ramifications of these trends and their potential impact on corporate decisions and transactions. Register today for SEER's 53rd Spring Conference on Environmental Law in Chicago, IL, from April 3-5. Visit AMBAR.org/SEERspring for more information. #SEERspring #EnvironmentalLaw #ESG

The EU is still the most advanced relative to most of us