Sarah Barker (Special Counsel, Melbourne) and Maged Girgis (Partner, Sydney) examine international developments that are raising the bar on corporate governance, and disclosure of, risks and opportunities associated with climate change.
Background – economic and regulatory evolution
You may have noticed a subtle change in the emphasis of your morning coffee read. The financial press has begun to devote serious column space to the issue of 'climate change'. So why this mainstream interest on what was, historically, an issue consigned to the 'environmental fringe'? In short, leading market stakeholders have begun to recognise that issues associated with climate change present significant economic and financial risks (and opportunities) over both long- and shorterterm investment horizons, which cannot be ignored.