Developments in climate change disclosure
Many of this blog’s readership will be very familiar with AGL’s carbon constrained future report. It is interesting to note some of the global developments on company disclosure and policy on climate change since AGL’s report was published last year:
- The Financial Stability Board Taskforce on Climate-Related Financial Disclosures has made a series of recommendations relating to climate change risk disclosure.
- The AICD has looked at legal opinion relating to Directors Duties and climate change.
- Westpac today has launched a new climate change policy.
The Westpac Climate Change Position Statement and 2020 Action Plan has the following key points:
- $10 billion target for lending to climate change solutions by 2020 and $25 billion by 2030.
- Tighter criteria for financing any new coal mines. Financing for any new thermal coal projects limited to existing coal producing basins and where the calorific value of coal meets the energy content of at least 6,300kCal/kg Gross as Received – i.e. projects must rank in the top 15% globally.
- Commitment to actively reduce the emissions intensity of the power generation sector, targeting 0.30 tCO2e/MWh by 2020.
- Continued commitment to a broad market-based price on carbon as the most efficient way to encourage emissions reductions at the lowest cost to the economy.
- Setting target to reduce Westpac’s direct footprint emissions (i.e., in our workplaces, across our branch network and IT operations) by 9% by 2020, and 34% by 2030.
- Building on our commitment to helping households become more climate-resilient, improving their energy efficiency, and reducing their environmental impact.
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