Australian investors should include ‘just transition’ objectives in net zero strategies, report on progress and broaden their definition of ‘climate solutions’ beyond renewables, according to a new in-depth report by the Investor Group on Climate Change (IGCC). The report, Investing in Australia’s Vital Regions, is based on consultation with many of the country’s major superannuation funds and fund managers and sets out actions for both investors and policymakers on how to support investment in the country’s climate transition. It also called on investors to encourage investee firms that are in the process of closing emissions-intensive assets to ensure strong outcomes for workers and communities, and the design of investment mandates that co-target transition outcomes and commercial financial returns. In related news, the Australian Accounting Standards Board (AASB) has launched a consultation on Australian Sustainability Reporting Standards. It includes three proposed draft Australian Sustainability Reporting Standards, with two based on the International Sustainability Standards Board disclosure requirements.
