Climate Change Governance – Directors’ Obligations
Great work is underway to reshape global reporting standards for environmentally sustainable corporate governance (ESG). The newly formed International Sustainability Standards Board (ISSB) released draft standards.[1] In addition, the Australian Accounting Standards Board (AASB) also consulted on climate reporting standards, releasing a proposed interim climate change reporting standards framework for industry feedback.[2] Key issues are global and domestic consistency, uplift in capability and practice and standards that are capable of reasonable and independent assurance.
A Climate Change Governance forum was hosted this August by the Australian Institute of Company Directors (AICD) as part of its Climate Governance Initiative to support Australian company directors on climate governance and obligations.
VC216
All Victorian Planning Schemes were amended by VC216 to embed Victoria’s Environmentally Sustainable Development Roadmap (ESD) [3]. This amendment aims to embed ESD more comprehensively into state and municipal planning policy and thereby into all planning scheme discretions within the State. It applies several Actions of the Plan Melbourne 2017-2050 report, in particular Actions relating to ESD, water management, cooling and greening, air and noise pollution and recycling and resource recovery.[4]
Climate Change Bill
The Victorian Sustainable Australia Party’s Clifford Hayes introduced the Planning and Environment Amendment (Wake Up to Climate Change) Bill 2022 into the Legislative Council on 2 August 2022. In his second reading speech, Mr Hayes noted that absence of:
‘broad […] objectives for how projects in planning should encompass consideration of climate change’.
He stated that this absence caused conflict between the Planning and Environment Act 1987 (Vic) and the Climate Change Act 2017 (Vic).[5] Citing the State of the environment 2021 report, Mr Hayes argued that the evidence suggested the planning system was:
‘failing our native flora and fauna, our wetlands, our forests, our open spaces, our diverse ecosystems and our diminishing wildlife corridors, all of which is resulting in a mass species extinction’.[6]
He argued that embedding climate change objectives in legislation:
‘would ensure that government policy […] actually flows through to implementation and decision-making’.[7]
Following debate, votes on the motion were against and the second reading of the Bill was lost.
KELLEHERS AUSTRALIA
Cameron Algie, LLB (Hons), Dr Leonie Kelleher OAM
cameron@kellehers.com.au
31 August 2022
Copyright © Kellehers Australia 2022.
Liability limited by a scheme approved under Professional Standards Legislation
This fact sheet is intended only to provide a summary and general overview on matters of interest. It does not constitute legal advice. You should always seek legal and other professional advice which takes account of your individual circumstances.
[1] International Financial Reporting Standards Foundation, ‘Exposure Draft and comment letters: General Sustainability-related Disclosures’ <https://tinyurl.com/2p9577d7> (accessed 31 August 2022).
[2] Australian Accounting Standards Board, ‘Open for Comment’ <https://www.aasb.gov.au/current-projects/open-for-comment/> (accessed 31 August 2022).
[3] Amendment VC216, which came into operation on 10 June 2022 is part of Stage One of the Environmentally sustainable development of buildings and subdivisions – A roadmap for Victoria’s planning system (Department of Environment, Land, Water and Planning, 2020.
[4] Action 80 and aspects of Action 89, 91, 94, 96, 97 and 101.
[5] Victoria, Parliamentary Debates, Legislative Council, 17 August 2022 (Clifford Hayes), 2436.
[6] Ibid.
[7] Ibid, 2437.
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