Aussie finance sector: Stick to ISSB baseline, government

TLDR: The Australian finance sector has cautioned the government against deviating from the International Sustainability Standards Board’s (ISSB) baseline for corporate reporting on climate change. The industry’s peak body, the Australian Financial Centre Forum (AFCF), has argued that adopting a different standard could lead to confusion, inconsistency, and inefficiency. The AFCF has called on the government to take a leading role in the development of the ISSB’s framework and to support businesses in adopting the standard. The warning comes as the government is considering options for reporting on climate risk, likely in line with the recommendations made by the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC). Industry experts have warned that the government’s proposals could be seen as a “backward step” and leave Australia out of step with international markets when it comes to climate-related disclosures.