Blog — Climate Alliance

2019

Has Australia ‘over-invested’ in renewable energy? | Renew Economy

No. Minister Angus Taylor clearly hasn’t looked at the history of our electricity infrastructure. Renewable energy policy has been poorly designed, to some extent because of politicisation, and to some extent because no-one imagined it would grow this fast, driven by astounding cost reductions and technology developments.

Thinking Ahead Institute reveals top fifteen extreme risks for investors | GARP

Non-financial threats loom larger, relative to economic or banking worries, according to the Thinking Ahead Institute.

Global temperature change ranks No. 1 on a list of 15 extreme risks compiled by the Thinking Ahead Institute (TAI).

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The institute, a not-for-profit outgrowth of Willis Towers Watson Investments' Thinking Ahead Group, which dates back to 2002, raised the climate issue two places higher than it was in a 2013 ranking of “potential events that are very unlikely to occur but could have a significant impact on economic growth and asset returns should they happen.”

Currently placing second is global trade collapse, up from fifth in 2013, followed by a new entry, cyber warfare.

Tim Hodgson, head of the Thinking Ahead Group, pointed to a general trend of “financial risks falling down the rankings and non-financial extreme risks growing in significance. Global temperature change becomes the highest-ranked risk due to our assessment of higher likelihood coupled with significant impact – in the extreme this would mean mass extinction.”

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Australia has dodged global attention on fossil fuels because of assiduous diplomatic efforts | The Guardian

It’s a testament to the effectiveness of Australia’s assiduous diplomatic efforts on behalf of the fossil fuel industry. Not only does Australia encourage other countries to buy its toxic coal and gas, but it works tirelessly in international forums including the G20 and the UN climate system to ensure that its huge fossil fuel exports are not discussed, let alone criticised.

Warming to prayer | The Saturday Paper

This government is not serious about climate change. It treats the science as a punchline. Its policies are a joke. It will fail to meet its Paris commitments. On the latest United Nations models, climate change will be worse than was predicted even a few years ago. Whole ecosystems will collapse. Natural disaster will ravage half of Australia.

The Third Degree | Breakthrough

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Following Breakthrough’s widely-reported policy brief on Existential Climate-related Security Risk, this latest discussion paper provides supporting evidence for the contentious 3°C scenario. A 3°C scenario, developed in 2007 by US national security analysts, is reproduced in this paper highlighting a proven prescient in foreseeing some of the major socio-political events that have emerged in the last decade.

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Directors put on notice over climate change related disclosures | JDSupra

The hardwiring of climate change-related disclosure guidance in ASIC's regulatory regime marks a new direction for the corporate regulator, and follows a series of other milestones in the push to include climate change on the global regulatory agenda.

Climate risk and sustainability: ASIC guidance developments | MinterEllison

The Australian Securities & Investments Commission (ASIC) has released revised guidance on climate change-related financial disclosures.

ASIC has released revised guidance on climate change-related financial disclosures made in both offer documents and Annual Report Operating & Financial Reviews:

ASIC has updated its guidance to, amongst other things:

  • incorporate the types of climate change risk developed by the G20 Financial Stability Board’s Taskforce on Climate Related Financial Disclosures (TCFD) into the list of examples of common risks that may need to be disclosed in a prospectus appearing in Table 7 of RG 228; and

  • in RG 247.66, highlight climate change as a systemic risk that could impact an entity’s financial prospects for future years and that may need to be disclosed in an operating and financial review.

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Climate Change: Evolution and Impact on Financial Risk Management | GARP

The presidential nominee of the European Commission recently endorsed the idea of creating a European bank focused on climate change, and the European Union is trying to figure out how to eliminate greenhouse gas emissions by 2050. What's more, as part of a green finance push, the U.K. is considering rules that force companies to disclose their climate-related risks.

All of this follows on the heels of comprehensive climate risk regulatory guidance issued by both the Financial Stability Board's Task Force on Climate-related Financial Disclosures (TCFD) and the Prudential Regulation Authority. Clearly, the transition to a low-carbon economy is coming, but how are financial institutions responding to these significant developments?

In a recent interview with Mike Barber (see full video, below), a partner in Deloitte's U.K. sustainability services group, GRI co-president Jo Paisley said the survey clearly showed that firms have different levels of maturity. “Some firms were doing an awful lot and had really thought about [climate risk] and had embedded it in their day-to-day operations,” she said. “Others, frankly, had not started and were really looking for help.” This video interview was first published on Deloitte U.K.'s dedicated climate change website.

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