The legislation will help enhance investments in the country, says CEO
The Financial Services Council (FSC) has expressed its support for the government’s introduction of the Treasury Laws Amendment (Financial Market Infrastructure and other measures) Bill.
In a statement, Blake Briggs, the CEO of the FSC, said the legislation will play a part in helping Australia reach its net-zero targets. He added that it will also provide investors with information regarding climate-related risks that may threaten the savings of Australians as well as climate-related opportunities that can provide them with financial returns.
“It will allow investors to price in climate risks and opportunities in their investments, allocating capital more efficiently and enhancing Australia’s attractiveness as a destination for capital,” said Briggs.
The Treasury Laws Amendment (Financial Market Infrastructure and other measures) Bill implements reforms on climate reporting requirements for big companies as well as a regime that will protect the infrastructure of the financial market in case a crisis occurs.
It will establish a climate risk disclosure framework that will provide investors and companies transparency, clarity, and certainty when it comes to investment opportunities in line with the net zero targets.
It will also allow the Reserve Bank of Australia (RBA) to take action regarding crises that will affect the critical financial market as well as strengthen its regulatory powers alongside the Australian Securities and Investments Commission.
“These new laws will modernise our financial system, provide greater information and clarity to investors, and incentivise investment in the net zero transformation,” said Treasurer Jim Chalmers upon the legislation’s introduction.
“Our economic reform agenda is all about modernising our economy and providing more certainty for more investment in Australia, and that’s what this legislation will deliver.”
Briggs said that the FSC welcomed the government’s collaborative approach when it came to the process of framing the legislation. He said that the approach ensured that the legislation will be applicable to funds management and superannuation businesses.
“We look forward to continuing to work with government, and with the Australian Sustainability Standards Board, to ensure the final requirements, particularly around forward-looking statements and scope 3 emissions, lead to useful and better-quality information overtime in the financial interests of Australia,” said Briggs.
