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Climate change risks to Australian businesses | Ben Scheltus for the RMIA The Risk Magazine

When doing your Risk Assessments, please be mindful of the physical and transition risks presented by climate change.

For three years in a row, the World Economic Forum’s Global Risk Report (GRR) has called out the risks we collectively face from climate change. In the 2019 report published in February, climate change and environmental risks dominate the “high likelihood” and “high impact” quadrant of the global risk matrix. Read the article here.

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Australia isn't doing its part for the global climate. Sooner or later we’ll have to pay our share | The Guardian

As things stand, however, Australia will be faced with the necessity of making the same transition over a period of perhaps five to 10 years. That will entail massive investment in solar PV, storage and wind, totalling perhaps $100bn. Given the uncertain environment created by decades of policy reversals, governments will need either to undertake this investment directly or provide long-term guarantees.

Big super fails to back activist resolutions | AFR

Activists are disappointed after the majority of large superannuation funds failed to support shareholder resolutions on environmental, social and governance issues last year.

The exceptions were construction industry fund Cbus, Local Government Super and Vision Super, which voted in favour of shareholder resolutions on more than 75 per cent of occasions, Australasian Centre for Corporate Responsibility's climate and environment director, Daniel Gocher, said.

“Despite claims from many funds that they are ‘ESG aware’, there is still widespread reluctance to support sensible shareholder proposals on these issues,” he said.

Heightened expectations of climate-related disclosure and assurance | MinterEllison

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Corporations are facing increased pressure to apply climate-related governance, strategy, risk metrics and disclosure. Report preparers, assurers and auditors must approach climate change-related issues with the same degree of rigour as any other financial variable.

As reporting season approaches, financial report preparers are grappling with new expectations concerning the disclosure of financial impacts associated with climate change.

Read more

Weathering the new storms: risks and culture in agribusiness | Turlough Guerin for Farm Institutes Insights

Climate, culture and risk are now mainstream governance issues in agriculture and natural resource management.

In a recent risk and governance forum held in Australia, experts highlighted that organisations should undertake rigorous review of their non-financial risks, in particular those related to culture and climate.

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While some sectors – including banking and agriculture – were directly called out in terms of their impact, there were implications for all sectors of industry.

With the increasing focus on the need for good governance, and expectation that the advice provided by professionals meets the highest ethical standards, it is incumbent upon professionals in all sectors to demonstrate how they are acting in the interests of their clients and organisations as a whole, and not just focus on financial performance.

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This article was originally published in the Australian Farm Institute Insights newsletter in May 2019

ALAN PEARS: The cost of Labor’s Paris Climate Change Policies | John Menadue, Pearls and Irritations

Economic modelling is one of many tools for policy development. It is often taken out of context and misused. The present debate over the cost of Labor’s climate policy provides an example. Lack of context, modelling assumptions and selective use of modelling results risks distorting future climate and energy policy, with serious consequences.

Before entering into discussion of recent Coalition claims regarding the impact of Labor’s climate policies, we should consider some context.

'Outrage is justified': David Attenborough backs school climate strikers | The Guardian

“[Young people] understand the simple discoveries of science about our dependence upon the natural world,” he said. “My generation is no great example for understanding – we have done terrible things.”

The protests by young people were enormously encouraging, Attenborough said. “That is the one big reason I have for feeling we are making progress. If we were not making progress with young people, we are done.”

OCBC is Southeast Asia's first bank to rule out funding new coal power plants | Eco Business

Singapore’s OCBC Bank is the first banking giant in Southeast Asia to rule out financing new coal-fired power plants.

In an interview with Bloomberg on Wednesday, the bank’s chief executive Samuel Tsien said the company would no longer fund new coal-fired power plants in any country.