Climate Risk Disclosure Compliance Training Program

Designed and delivered by Strategy&Ops Consultancy Team

Background

The Australian Government has introduced the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024, which aims to establish a mandatory climate-related financial disclosure regime. The proposed legislation is designed to align with international standards and will require large businesses and financial institutions to disclose climate-related risks and opportunities in their annual reports starting from January 1, 2025 (Treasury, 2024).

The legislation will be implemented in phases over several years. Initially, entities will be required to report on Scope 1 and 2 greenhouse gas emissions, with Scope 3 emissions disclosures becoming mandatory from the second reporting year. This phased approach includes the development of technical and analytical capacities to meet the evolving standards (Herbert Smith Freehills, 2024).

Affected Entities

The new regulations will primarily impact:

  • Large Businesses: Entities that fall under the Australian Securities and Investments Commission (ASIC) reporting requirements will need to comply with these new standards. This includes publicly listed companies, large private companies, and financial institutions.
  • Entities Required to Prepare Financial Reports: Any entity required to prepare financial reports under Chapter 2M of the Corporations Act will need to include sustainability reports as part of their annual financial reporting.
  • Financial Institutions: Banks, insurance companies, and asset managers will be significantly affected due to their extensive exposure to climate-related financial risks.

Objectives

The Climate Risk Disclosure Compliance Training Program is designed to equip large businesses, financial institutions, and other affected entities with the knowledge and skills necessary to comply with the new Commonwealth Climate Disclosure regulations. The objectives of this training program are to:

  1. Provide Comprehensive Understanding:
    • To ensure participants understand the purpose, objectives, and key regulatory requirements of the Commonwealth Climate Disclosure Policy.
    • To highlight the alignment with international standards such as the ISSB’s IFRS S2 Climate-related Disclosures Standards.
  2. Identify and Manage Climate Risks and Opportunities:
    • To educate participants on the types of climate risks (physical and transition risks) and how to identify climate-related opportunities.
    • To present case studies that illustrate effective risk and opportunity management strategies used by large businesses and financial institutions.
  3. Develop Data Collection and Management Skills:
    • To teach the necessary data requirements for reporting Scope 1, 2, and 3 greenhouse gas emissions.
    • To provide best practices for data collection, management, and ensuring data accuracy and consistency.
  4. Enhance Technical and Analytical Capacities:
    • To develop participants’ technical skills using tools for climate risk assessment and analytical techniques.
    • To offer practical exercises to enhance these skills through hands-on activities.
  5. Ensure Compliance and Reporting Proficiency:
    • To explain the phased implementation of compliance requirements and the specific needs for different entities.
    • To guide participants on budgeting for compliance and managing evolving standards to mitigate non-compliance risks.
  6. Leverage Climate Disclosure for Strategic Advantage:
    • To demonstrate how to integrate climate risk disclosure into risk management frameworks.
    • To teach effective communication strategies to build stakeholder trust.
    • To encourage innovation and identify new opportunities through robust climate risk management, enhancing the ability to attract investment.
  7. Provide Tailored Support and Resources:
    • To offer customized case studies and examples relevant to specific sectors.
    • To supply industry-specific metrics and reporting practices as required by the Australian Sustainability Reporting Standards (ASRS).
    • To provide ongoing support and resources, including a comprehensive training manual, templates, tools, and access to a digital library of articles, case studies, and best practices.

For more information about this program, please download the training outline here.