The AICD (Australian Institute of Company Directors) hosted a webinar on Thursday 23 February 2023 on the topic of “Preparing for new climate reporting and disclosure standards”. The facilitator and panellists included:

  • Christian Gergis, AICD (Facilitator)
  • Karen McWilliams, Chartered Accountants A/NZ
  • David Armstrong, Non-Executive Director NAB, IAG

In summary:

  • Taskforce for Climate-related Financial Disclosures (TCFD) established.
  • International Sustainability Standards Board (SSB) – International Financial Reporting Standards (IFRS) Foundation leading consolidation post-COP26 Glasgow (see Picture 2). Set out four objectives:
    1. Developing standards.
    2. Providing information to investors.
    3. Company reporting to capital markets,
    4. Interoperability of disclosures across jurisdictions.
  • TCFD recommends 11 voluntary disclosures (see Picture 1).
  • Draft S1 Sustainability standards.
  • Draft S2 Climate disclosures.
  • June 2023 date expected for standards publication.
  • Implications for Directors:
    • Early preparation is critical.
    • Legal risks managing increased reporting volume and liability.
    • Data gaps and Scope 3 (supply-chain mapping) challenges.
    • Consider capability needs.

Picture 1 – 11 TCFD Recommended Disclosures

 

Picture 2 – © AuditBoard Inc – ISSB consolidation