Australia’s peak professional, industry, and investor bodies have committed to addressing climate risk through a new reporting regime that aims to set a global baseline, according to the Australian Banking Association (ABA).

The 20 peak bodies represent over 400 companies, around 300 investors with US$33 trillion assets under management, and 500,000 business and financial professionals.

In a joint submission, the peak bodies welcomed the International Sustainability Standards Board (ISSB) draft sustainability standards. However, they suggested clear, transparent, comprehensive, and comparable disclosure of sustainability-related information be part of a well-functioning global financial system’s foundation. They have also backed a global approach to developing sustainability disclosure standards and suggested the ISSB be the global body to issue these standards.

“The overarching goal should be a globally consistent, comparable, reliable, and verifiable corporate reporting system to provide all stakeholders with a clear and accurate picture of an organisation’s ability to create sustainable value over time,” the peak bodies said in a statement.

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The peak bodies also emphasised the benefits of collaborating and coordinating sustainable disclosure initiatives and financial accounting standard-setting.

“The ISSB is best placed to achieve this given its connection to the International Accounting Standards Board (IASB),” they said. “It is critical that the ISSB and other jurisdictions developing sustainability standards take a coordinated approach to avoid regulatory and standard setting fragmentation by aligning key definitions, concepts, terminologies, and metrics on which disclosure requirements are built.

The peak bodies further recommended a clear and comparable disclosure of sustainability-related, and particularly climate-related, information to avoid large-scale financial risks from a disorderly transition to net-zero emissions.

“The peak bodies look forward to working with the Australian government and key national and international stakeholders as the climate change reporting regime is finalised and phased in,” they said.