Climate-driven changes in the global financial sector that are relevant to seafood producers in Australia
QUESTION
What climate-driven changes are happening in the global financial sector that are relevant to seafood producers in Australia?
ANSWER 1
Written response:
In 2024 as part of federal Treasury’s Australian Sustainable Finance Roadmap June 2024, which is supported by the Australian Council of Financial Regulators (APRA, ASIC, RBA, Treasury), Australia adopted the International Financial Reporting Standards Foundations IFRS ISSB sustainability standards. Australia previously adopted the IFRS IASB international accounting standards in 2004-2005.
To date in the space of 2 years since they were launched over 36 countries covering 55% of global GDP have adopted the ISSB standards. The purpose is to reduce duplication and provide one high quality sustainability reporting baseline to capital markets on issues such as climate change, energy use, water, waste, biodiversity, people, circularity.
The Australian version of the IFRS ISSB standards are the Australian Sustainability Reporting Standards ASRS.
Sustainability reporting is being introduced into the Australian economy via Chapter 2M of the Corporations Act 2001, in a partial and phased 3 year implementation process from 1 Jan 2025.
This is managed by the Australian Securities and Investment Commission ASIC with Treasury and the Australian Accounting Standards Boards AASB. In the first phase, both listed and private entities, starting with the largest entities in the economy, are required to lodge forward-facing climate-related sustainability reports, to accompany directors, financial and auditors’ reports. The relevant standard is AASB S2 Climate-related Disclosures.
Further information can be found at ASIC RG Sustainability Reporting Guide March 2025 and Australian Accounting Standards Boards AASB- Sustainability Standards. Climate science scenario information is available from the National Climate Risk Assessment Sept 2025, CSIRO State of the Climate 2024, BOM Climate and Water End of Financial Year Report 2024-2025, international IPCC AR6 2023 Climate Change Science Synthesis Report.
https://www.asic.gov.au/regulatory-resources/find-a-document/regulatory-guides/rg-280-sustainability-reporting/
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