The Australian Institute of Company Directors’ Climate Governance Forum 2023 drew nearly 2000 attendees in-person and online to hear the latest in corporate initiatives to transform industry sustainably. I ws among the team covering the Forum for Company Director magazine.
Keynote speaker Mike Cannon-Brookes, co-founder of Atlassian and chair of Boundless, emphasised that directors who delay transitioning to renewable energy may face a shareholder backlash and increased risks when mandatory climate-related financial reporting is enforced. He stressed decarbonisation will impact all Australian companies, and urged directors to understand the implications for their firms.
Cannon-Brookes predicted obligations for directors on climate will become more stringent over the next decade, foreseeing increased controls on pollution and reporting. He cautioned against inaction, as delayed changes tend to be more costly.
David Thodey, chair of Xero, Tyro, and the Great Barrier Reef Foundation, emphasised the significance of impending mandatory climate reporting, describing it as the biggest change in his director career. The Australian Treasury is developing a system for reporting decarbonisation targets in line with international standards.
The tech veteran urged directors to actively engage and ensure their companies possess the necessary skills and oversight for compliance.
The forum emphasised that boards should integrate climate targets as a core part of their business strategy. Creating an environment for open dialogue and facilitating strategic climate planning was deemed essential. Climate Governance Forum panelists also noted companies should adapt to evolving understandings of physical risks and climate adaptation.
Directors were urged to consider nature in their decision-making due to the reputational, regulatory, and supply chain risks tied to biodiversity loss. The TNFD aims to redirect global funding from harmful to beneficial nature-related activities.
In summary, the Climate Governance Forum 2023 underscored the urgency for directors to understand and integrate climate considerations into their strategies, given the impending mandatory reporting requirements and evolving climate risks.
