For investors who are increasingly taking climate risks and possibilities into account when making investment decisions, this alignment is crucial, according to BCA. The government's draft climate-related financial disclosure exposure legislation, which aims to give investors a thorough understanding of the potential and risks associated with climate change, is supported by the council.

BCA CEO Bran Black emphasized the value of ongoing disclosure quality improvement to support investment decision-making processes. He emphasized that access to comprehensive and superior financial disclosure reports relating to climate change is essential for investors to make well-informed decisions. "It is imperative that investors possess the knowledge necessary to make well-informed decisions. Climate-related risks and opportunities are becoming more significant for investors, and a strong and well-constructed framework for financial disclosure related to climate change will be essential for their future investments," stated Mr. Black.

Mr. Black promoted the idea that the International Sustainability Standards Board (ISSB) and the Australian Accounting Standards Board (AASB) should closely align their standards, highlighting the importance of accuracy and lucidity in the responsibilities and legal risks associated with the Corporations Act. This kind of alignment is thought to be necessary to save compliance costs and allow legitimate comparisons across firms in different jurisdictions. Mr. Black suggested using "training wheels" to ensure that the new regulations are successfully implemented and that they are advantageous to disclosure preparers as well as users.

Furthermore, Mr. Black stressed the significance of a well considered start date for the law, recommending that compliance be required at least a year after the law is announced or the AASB standards are released, whichever comes first. He thinks that by taking this method, the reform's efficacy will be guaranteed without hastening the procedure and running the risk of failure.

The BCA is calling for the harmonization of national reporting requirements with international norms in relation to climate-related financial disclosures. This highlights the crucial role that financial markets play in combating climate change and encourages sustainable future development in addition to assisting with well-informed investment decisions.