Australian-first credibility guide to support businesses in new era of climate reporting

A new Australian-first credibility guide for corporate climate transition plans, with input from the nation’s leading industry groups and climate transition experts, has been released by Monash University’s Climateworks Centre. 

Climateworks Centre CEO Anna Skarbek AM said: ‘Net zero targets are now business-as-usual – but how companies plan to get there is not. This guide will help fill that crucial gap.’ 

The Climateworks Centre guide draws on global best practices, offering seven credibility criteria and 31 associated sub-criteria. Companies and investors can use these criteria when developing or assessing climate transition plans, while governments and financial regulators can use them to inform policy and disclosure guidance.

‘Investors, regulators and consumers are holding the bar high for corporate climate action,’ said Skarbek, a former investment banker.

‘Climate transition plans align corporate climate ambition with actionable steps, outlining how a company intends to achieve its targets.’

‘There is global climate transition plan guidance from many sources and Climateworks Centre’s guide synthesises this and localises it for Australia, providing a crucial credibility lens for companies, investors, regulators and government.’ 

Charlotte Turner, co-author of the guide and former lawyer specialising in climate risk, flagged the guide’s role in supporting companies to remain competitive and future-proof themselves. 

‘A credible climate transition plan is one of the best ways for companies to adjust to the new era, where planning for net zero is becoming standard practice for Australian companies.’

‘Investors now expect companies to disclose a credible transition plan. Plus, they will make everyone’s lives much easier in the face of mandatory climate-related financial disclosures, which were introduced in Australia in January of this year.’ 

‘Those who view disclosures as more than a compliance exercise and make credibility a central pillar stand to gain,’ Turner added. 

‘Companies can improve business resilience and all stakeholders can accelerate climate action by applying Climateworks Centre’s credibility guide to climate transition plans and other relevant climate-related disclosures.’

‘As the world’s money moves to align with the Paris Agreement goals, companies with credible plans – aligned to all seven criteria – are better positioned to attract and retain capital.’

Companies influence approximately 70 per cent of Australia’s greenhouse gas emissions. 

‘Urgent and credible corporate action is crucial to prevent the worst impacts of climate change and allow companies to thrive in a world looking to reduce emissions rapidly,’ said Turner. 

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