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The Climate Governance Forum 2024 (CGF2024), organised by the Australian Institute of Company Directors (AICD), took place 2 weeks ago at the International Convention Centre (ICC) in Sydney, bringing together nearly 2,000 attendees, both in-person and virtually, with notable participants such as Bilateral Solutions‘ MD Martine Joly. The event focused on discussing the impending introduction of mandatory climate reporting in Australia.

An impressive gathering of nearly 2,000 participants filled the ICC Sydney for the CGF2024

AICD CEO Mark Rigotti opened the forum, setting the stage by outlining key themes and discussion points for the event. The conference emphasized the importance of transparency, stakeholder engagement, and proactive climate action for organizations across the country.

AICD CEO Mark Rigotti delivers the opening address at the CGF2024

Coles Chair Shares Insights on Corporate Sustainability Practices

James Graham, Chair of Coles Group, shared insights on sustainability practices, highlighting Coles’ transition to renewable electricity and collaboration with industry partners. Graham emphasized the importance of stakeholder engagement and transparent communication, noting that customers are increasingly concerned about corporate progress in sustainability. He stressed the need for a clear and ambitious climate action roadmap to build trust among stakeholders.

Graham outlined Coles’ strategy to balance reasonable and ambitious sustainability goals, focusing on integrated solutions across their value chain. The company is actively engaging with suppliers and addressing emissions from forest land and agriculture within its supply network, demonstrating a comprehensive approach to sustainability.

James Graham, Chair of Coles Group, discusses corporate sustainability practices and initiatives

Navigating the New Landscape of Mandatory Climate Reporting

The Federal Government’s new legislation for mandatory climate reporting was a central topic of CGF2024 discussion, with key points for directors and best practices for assessing and disclosing climate-related impacts being explored. AICD CEO and Managing Director Mark Rigotti MAICD emphasised the need for directors and boards to adapt to the rapidly evolving landscape of climate governance.

The significance of climate competency was underscored, with the current shift described as potentially the most substantial economic transformation since the industrial revolution. While the new climate-related reporting obligations will introduce additional requirements, they also present opportunities. These new standards will provide insights into how competitors and other organizations are progressing on their decarbonization journeys.

The discussion explored how boards can effectively prepare for these new reporting requirements, focusing on best practices for assessing and disclosing climate-related impacts. Participants examined strategies for enhancing climate competency at the board level and leveraging the new reporting framework to drive meaningful change within their organisations

Expert panel explores the implications of mandatory climate reporting for Australian businesses. From left to right: Kate O’Rourke, ASIC Commissioner; Andrew Stevens, Non-executive Director at Stockland; Timothy Stutt, ESG Practice Lead at Herbert Smith Freehills; and Christian Gergis, Head of Policy and Advocacy at AICD (Moderator).

Minister for Environment and Water Addresses Forum

Minister for the Environment and Water, Tanya Plibersek, joined through video link for a discussion on environmental policies and initiatives. On the day of the forum, Minister Plibersek announced that the federal government had tasked the Productivity Commission to lead an inquiry into boosting circularity across the Australian economy.

Minister Plibersek emphasized the importance of extending the life of materials and products, advocating for a shift towards a more sustainable and efficient use of resources. She stressed that we should be deriving greater value and longevity from the materials we use, aligning environmental goals with economic efficiency.

Minister Tanya Plibersek outlines Australia’s environmental initiatives, including the new Productivity Commission inquiry into circular economy opportunities.

Additional Key Discussions: ESG, Investor Alignment, and Biodiversity

As additional key discussions of the forum, several important topics were addressed. The growing backlash against ESG issues was explored, with strategies discussed for boards to respond to changing attitudes and proactively engage stakeholders. The forum also focused on aligning board and investor interests in climate action, emphasizing collaboration between directors and investors to incentivize positive climate outcomes and improve communication strategies.

Furthermore, the emerging concerns of biodiversity loss and nature degradation were highlighted as the next frontier for board sustainability efforts, with discussions on how boards can pursue nature-positive actions and integrate these considerations into broader sustainability strategies.

Given this important nature of Mandatory Climate Reporting and its significance for businesses across Australia, we will further develop the topic in upcoming blog posts, providing additional insights on this crucial issue. Stay tuned.

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