The Federal Government has moved forward to the second stage of talks with large businesses, including insurers, over plans to ensure companies meet their climate-related obligations.   

The Treasury has released a consultation paper following initial discussions outlining proposed approaches for some of the country’s largest financial groups to help achieve net-zero outcomes by 2050.  

The proposals include plans to require Australia’s largest listed and unlisted companies to report on how they are responding to climate change from July 1 next year.   

The climate reporting system will form part of the country’s broader sustainable finance framework, along with additional initiatives to tackle greenwashing and improve market transparency.   

Regulators intend to put in place a three-year transitional period for affected businesses, while retaining potential action against companies and directors regarding forward-looking statements and scope 3 emissions.   

Financial Services Minister Stephen Jones says the changes will help provide financial markets with important information to help ensure that long-term climate investments achieve their targets.   

“The consultation paper builds on existing climate disclosure practices in Australia to improve breadth, quality and sophistication of climate disclosures across a wider range of companies,” Mr Jones said in a joint release with Treasurer Jim Chalmers and Climate Change and Energy Minister Chris Bowen.  

“At the same time, the proposals aim to ensure companies are afforded time to build internal capability and expertise to support climate disclosure.”   

The Insurance Council of Australia was one of many organisations to contribute to earlier consultations, writing in support of the Government’s initiative but noting concerns over potential cost and capability burdens.   

The Treasury says submissions for the latest round of consultations will be open until July 21, focusing on views on “whether the proposed positions relating to coverage, content, framework and liability are workable”.  

Click here to access the consultation paper and submit a response.