Events & News

Culture is widely acknowledged as a critical element that can either catalyse or undermine business success. But it is complicated to manage for a company, let alone measure as outsiders.

Last week saw the most significant greenwashing action taken to date by regulators in Australasia. A court action was launched by Australian Securities and Investments Commission (ASIC) against Mercer Superannuation (Australia) Ltd alleging greenwashing conduct in a number of their superannuation investment options.

Leading Australian financial institutions and finance industry peak bodies have made a joint statement on the Australian Government’s proposed Safeguard Mechanism reforms. As well as finance industry peak bodies ACSI, ASFI, IGCC and RIAA, the joint statement has been signed directly by institutional investors including Aware, Cbus, HESTA, First Sentier, IFM, Metrics, and Ethical Partners. These organisations represent more than 500 investors, banks, insurance firms and financial service providers who collectively hold over USD$29 trillion assets under management. The statement welcomes the Government’s proposal to reform the Safeguard Mechanism, while noting that the emissions reductions required under the Safeguard Mechanism are not yet aligned with the reductions needed to limit global warming to 1.5°. Leading Australian financial institutions and finance industry peak bodies have made a joint statement on the Australian Government’s proposed Safeguard Mechanism reforms. As well as finance industry peak bodies ACSI, ASFI, IGCC and RIAA, the joint statement has been signed directly by institutional investors including Aware, Cbus, HESTA, First Sentier, IFM, Metrics, and Ethical Partners. These organisations represent more than 500 investors, banks, insurance firms and financial service providers who collectively hold over USD$29 trillion assets under management. The statement welcomes the Government’s proposal to reform the Safeguard Mechanism, while noting that the emissions reductions required under the Safeguard Mechanism are not yet aligned with the reductions needed to limit global warming to 1.5°. Therefore, the Safeguard Mechanism should be a floor, not a ceiling, to facilities’ decarbonisation activities.

Proposal from the Australian Government for a legislated objective of superannuation being ‘to preserve savings to deliver income for a dignified retirement, alongside government support, in an equitable and sustainable way.’

The Australian Prudential Regulation Authority (APRA) renewed expectations of superannuation funds in prudential guidance SPG 530 Investment Governance.

Momentum around responsible investment and sustainable finance hit new highs in 2022, and all indicators suggest that for our own markets of Australia and Aotearoa New Zealand, this focus on embedding sustainability into finance won’t slow in 2023. 2023 is shaping up to keep us all busy, as our sector firms up its position within the core financial market settings across the globe. Currently being hardwired into the sector are codes of practice, mandatory disclosure requirements, formal labelling standards, additional scrutiny by regulators, convergence on standard definitions and elevated expectations of investment managers, asset owners and financial advisers.

2023 is going to be an exciting year for emerging technologies. In the latest edition of Sustainalytics’ 10 for report series, we developed an approach to support investors interested in sustainability issues associated with nascent technologies, including autonomous shipping, air taxis, electric vehicles (EVs), gene therapies, AI in IT Operations (AIOps) and small modular reactors.

Incoming international reporting standards will provide a helpful blueprint for directors as they discharge their duties, with a new legal opinion confirming that Australian company directors should already be focussing on financially material issues such as climate risk and other sustainability matters. The opinion comes from one of Australia’s leading legal experts on financial climate risks, Sebastian Hartford-Davis, and Kellie Dyon of counsel. It builds on the landmark ‘Hutley Opinions’ by Mr Hartford-Davis and Noel Hutley SC, which confirmed that directors have a duty to consider and manage climate risk. MinterEllison acted as instructing solicitors on both the Hutley Opinions and the current brief. The International Sustainability Standards Board (ISSB) draft standards, set to be finalised later this year, would require disclosure of material information about sustainability risks. The legal advice, sought by a group on institutional investors – the Australian Council of Superannuation Investors (ACSI), Investor Group of Climate Change (IGCC) and the Responsible Investment Association Australasia (RIAA) – highlights that directors should not face increased liability risks under ISSB standards and should not need any kind of ‘safe harbour’.

Proposal to mandate climate-related disclosures in Australia by the Australian Treasury.

The Aotearoa New Zealand Government’s proposal to professionalise and expand the assurance of climate statements through the Ministry of Business, Innovation and Employment Hīkina Whakatutuki (MBIE) and Ministry for the Environment Manaaki I Te Taiao (MfE).