Sustainability for ASX Companies

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It all starts with governance. Sustainability governance involves the oversight of climate, nature and social issues at Board level, management of these issues by the executive and setting the necessary mechanisms to drive the company's performance as a sustainable business. 

The new global baseline standards for companies to disclose their strategic response to the risks and opportunities of climate change, nature and biodiversity, social and human capital. The ISSB Standards will generate more transparent, comparable and reliable information to investors.

Becoming a legal obligation for companies in Australia from 1 January 2025, following widespread adoption of the TCFD Recommendations across the ASX200.  Climate-related financial disclosure is a seismic shift in corporate reporting and will help build strategic responses to the physical risks of climate change and the risks and opportunities of the transition to a low carbon economy.

"Nature is no longer a corporate social responsibility issue, but a core and strategic risk management issue alongside climate change", TNFD Recommendations September 2023.  Australia faces a unique set of challenges to its ecosystems, and the implications for business are significant. Australian companies must start developing their response. 

No company can provide solutions for all the issues of climate change, biodiversity loss or inequality. ESG or sustainability strategy is formulated by identifying the priority issues, developing meaningful targets and setting action plans. Simplicity and focus are key.

Identify, end, prevent, mitigate and account for negative human rights and environmental impacts.  These are the steps required by the new EU directive, and they will drive new practices in supply chain diligence around the world. Robust processes will result in leading sustainability performance and reporting.