Industry funds welcome proposed ESG disclosure regime
Industry superannuation funds have told the Treasury that proposed new legislative arrangements around climate-related financial disclosure will help determine the sorts of companies they choose to invest in.
In a submission filed with Treasury, Industry Super Australia said the Government’s move to standardise climate disclosures by large businesses and financial institutions would help industry super funds to identify and consider climate and sustainability risks in entities in which they invest.
“It will also allow industry super funds to better track delivery of their own net zero carbon emission targets by improving the transparency of climate risk in the entities in which they invest,” the submission said.
At the same time, the ISA submission pointed out that superannuation funds faced unique challenges as disclosing entities under the proposed reforms.
“As asset owners and unlisted entities, they rely on different sources of information to listed entities to meet their disclosure obligations and have numerous investments they will need to report on, all which takes significant time and resources to both establish and manage ongoing,” it said.