This government is not serious about climate change. It treats the science as a punchline. Its policies are a joke. It will fail to meet its Paris commitments. On the latest United Nations models, climate change will be worse than was predicted even a few years ago. Whole ecosystems will collapse. Natural disaster will ravage half of Australia.
Following Breakthrough’s widely-reported policy brief on Existential Climate-related Security Risk, this latest discussion paper provides supporting evidence for the contentious 3°C scenario. A 3°C scenario, developed in 2007 by US national security analysts, is reproduced in this paper highlighting a proven prescient in foreseeing some of the major socio-political events that have emerged in the last decade.
The hardwiring of climate change-related disclosure guidance in ASIC's regulatory regime marks a new direction for the corporate regulator, and follows a series of other milestones in the push to include climate change on the global regulatory agenda.
Redburn, the equity research house, has removed all “buy” ratings from the biggest integrated oil companies, arguing that the industry faces an “existential risk” as long-term forecasts for oil demand are up to 30 per cent too high.
The Australian Securities & Investments Commission (ASIC) has released revised guidance on climate change-related financial disclosures.
ASIC has released revised guidance on climate change-related financial disclosures made in both offer documents and Annual Report Operating & Financial Reviews:
Regulatory Guide 228 Prospectuses: Effective disclosure for retail investors; and
Regulatory Guide 247 Effective disclosure in an operating and financial review.
ASIC has updated its guidance to, amongst other things:
incorporate the types of climate change risk developed by the G20 Financial Stability Board’s Taskforce on Climate Related Financial Disclosures (TCFD) into the list of examples of common risks that may need to be disclosed in a prospectus appearing in Table 7 of RG 228; and
in RG 247.66, highlight climate change as a systemic risk that could impact an entity’s financial prospects for future years and that may need to be disclosed in an operating and financial review.
BHP pressured by investors to suspend membership of groups including Minerals Council.
The presidential nominee of the European Commission recently endorsed the idea of creating a European bank focused on climate change, and the European Union is trying to figure out how to eliminate greenhouse gas emissions by 2050. What's more, as part of a green finance push, the U.K. is considering rules that force companies to disclose their climate-related risks.
All of this follows on the heels of comprehensive climate risk regulatory guidance issued by both the Financial Stability Board's Task Force on Climate-related Financial Disclosures (TCFD) and the Prudential Regulation Authority. Clearly, the transition to a low-carbon economy is coming, but how are financial institutions responding to these significant developments?
In a recent interview with Mike Barber (see full video, below), a partner in Deloitte's U.K. sustainability services group, GRI co-president Jo Paisley said the survey clearly showed that firms have different levels of maturity. “Some firms were doing an awful lot and had really thought about [climate risk] and had embedded it in their day-to-day operations,” she said. “Others, frankly, had not started and were really looking for help.” This video interview was first published on Deloitte U.K.'s dedicated climate change website.
And more on that topic: “On any reasonable assessment of the data, the climate impact of Australia’s fossil fuel industry are immense,” said Richie Merzian, Climate & Energy Program Director at the Australia Institute.
“Many argue Australia’s emissions are small on a global scale, but this research shows the complete opposite: our domestic emissions are large and our exported emissions are even larger.”
‘While disclosure is critical, it is but one aspect of prudent corporate governance practices in connection with the mitigation of legal risks. Directors should be able to demonstrate that they have met their legal obligations in considering, managing and disclosing all material risks that may affect their companies. This includes any risks arising from climate change, be they physical or transitional risks.’ Mr Price said.
Download and read the update here.
"These ideas of independence, neutrality, publicity and reasoned reports may be contrasted with what some, perhaps many, would see as the characteristics of modern political practice with its emphasis on party difference, and with decision-making processes that not only are opaque but also, too often, are seen as skewed, if not captured, by the interests of those large and powerful enough to lobby governments behind closed doors. "
Passengers were shut out of some of the country’s busiest train stations during the Friday evening rush hour, while hundreds of thousands of homes were left without electricity after what the National Grid described as a problem with two generators.
The acquisition is therefore aimed at solidifying Moody's commitment to "promoting transparent and globally consistent standards for evaluating environmental, social and governance (ESG) risks and opportunities," the company announced last week.
The hot weather seen in the Netherlands and France was made up to “100 times more likely” by climate change, the study finds.
And the heat in Cambridge in the UK – which saw a new country-wide record of 38.7C in July – was made around “20 times more likely” by human-caused warming
Companies that don’t adapt, including companies in the financial system, will go bankrupt without question
Dr Paul Fisher: “It will take some time, but the disclosure of climate-related risks is going to become mainstream.”
Three studies published in Nature and Nature Geoscience use extensive historical data to show there has never been a period in the last 2,000 years when temperature changes have been as fast and extensive as in recent decades.
“The evidence is abundant: global warming is indisputable.The planet will survive. Many species may not.
Use of emissions-intensive products from the resources industry have contributed significantly to global warming. Those emissions related to BHP’s business come from three sources. Scope 1 and 2 emissions from electricity consumption and diesel use at our operations, and scope 3 emissions from our value chain.”
“Ladies and gentlemen, I am firmly of the view that the next 18 months will decide our ability to keep climate change to survivable levels and to restore nature to the equilibrium we need for our survival.”
This paper is a primer for business leaders who wish to begin the process of designing and implementing a framework that will allow for the establishment of resilient businesses while also protecting directors from potential liability with respect to their duties under Australian companies law.