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Mandatory climate rules will stop investors groping in the dark

Investors need information about climate risk exposure to make investment decisions, just as they need financial statements and business plans.

Toby Phillips and Andrew Hudson

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New laws requiring large firms to disclose the climate risks associated with their business activities have come into effect from January. 1 The mandatory disclosure regime is a widely supported piece of financial regulation and will make Australia’s investment landscape more competitive and accelerate the transition to a net zero economy.

The physical risks of a changing climate and the business risks from industrial transition will change the investment landscape. Dion Georgopoulos

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Toby Phillips is a program director at the Centre for Policy Development.
Andrew Hudson is Chief Executive Officer of the Centre for Policy Development.

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    Original URL: https://www.afr.com/policy/energy-and-climate/mandatory-climate-rules-will-stop-investors-groping-in-the-dark-20250102-p5l1q8