Abby Foote

Over the past fortnight, I have had the opportunity to attend the Australian Institute of Company Directors Climate Governance Forum, and subsequently have been working through both the ASIC Regulatory Guide 280 and a suite of industry papers on mandatory climate-related financial disclosures. The message is clear: climate governance has shifted from being a “best practice” to being a mandatory director responsibility. The Corporations Act has been amended, Australian Sustainability Reporting Standards (ASRS) are in place, and ASIC has set out how disclosures will be supervised and enforced. For many boards, reporting will begin as early as 1 January 2025. We know regulation often feels like compliance pressure. But I believe this new era can present a strategic opportunity. The businesses that lean in early will not only manage risk — they will be better positioned to access capital, protect brand trust, and future-proof growth. Some reflections I took away: 🕴‍ Governance is central. Boards must demonstrate oversight of climate targets, transition plans, and the integration of climate risk into remuneration and decision-making. 📖 Mandatory disclosures are here. From 2025, large entities must publish a sustainability report in line with ASRS, covering governance, strategy, risk, and metrics (Scope 1, 2, and 3 emissions, scenario analysis, and targets). 🌳 Directors’ duties are evolving. ASIC has clarified that directors must actively consider climate risks as part of their duty of care and diligence. ☀️ Scenario analysis is non-negotiable. Entities must assess resilience under both a 1.5°C and a higher-warming (>2.5°C) pathway. This pushes strategy beyond short-term disclosures to real long-term planning. 📈 Modified liability is temporary. Between 2025 and 2027, limited relief applies to Scope 3, transition plans, and forward-looking statements. After that, directors are fully accountable. 👉 This is more than risk. Framing disclosures solely as “compliance” risks missing the upside: new market access, financing advantages, and premium positioning for trusted, transparent brands. It’s encouraging to see Australia move in line with global expectations, and to see directors and executives working through what this means in practice. My curiosity to learn more has been tweaked - I would appreciate views on how businesses can use this reporting obligation not just to comply, but to unlock strategic opportunity... #ClimateGovernance #NED #Sustainability #FutureProofing

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My eyes lit up when I saw Treasury released modelling today to accompany the NDC and Net Zero Plan announcements. It's a fund read for the wonks among us. Some highlights from me: Pursuing and realising a "Renewable Exports Upside" (aka superpower) scenario where Australia becomes an exporter of green iron and ammonia has massive economic benefits for the country and a meaningful contribution to global decarbonisation. Even a modest ambition results in: - 1.2% global emissions reduction (more than Australia's entire emissions) - 20% lower wholesale electricity prices - 79-84% increase in investment - $68 billion in additional exports - $2,400 increase in GDP per capita Also, stay tuned for some forthcoming work from TSI on this finding from Treasury: "Realising Australia's renewable export potential is projected to improve Australia's broader competitiveness by putting significant downward pressure on wholesale electricity prices. Under the Renewable Exports Upside Scenario, greater flexibility from industrial capacity is projected to reduce wholesale electricity prices by around 20 per cent by 2050, relative to the Baseline Scenario. This reflects the broader economic benefits of energy-intensive industries such as green metals, through additional flexibility in the electricity grid." Congratulations Alex Heath Rebecca Cassells and the big Commonwealth Treasury team involved!

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Local Water Done Well Status Update Another five councils reported decisions this week, with 16 now remaining: • Whanganui confirmed its proposal to form a joint WSO with Ruapehu, meaning there will be 3 providers in the region: Whanganui/Ruapehu; Horowhenua/Palmerston North/Rangitīkei; and Manawatū district (Tararua is part of a proposed Wairarapa group). • Buller and Grey districts have both confirmed they will establish a jointly WSO, and waiting for Westland to decide if they will join. • In a change from its original proposal, Mackenzie followed the precedent set in recent weeks by neighbours Waimate and Waitaki, deciding to keep services in-house. This leaves Timaru with a tricky decision, given the withdrawal of it's intended partners from a joint WSO. • Gore confirmed its decision to join a Southern Water WSO, together with Central Otago and Clutha. In Northland, a regional WSO is back on the table after previous consideration favoured independent delivery. Earlier decisions led to the establishment of a Working Group, comprising elected members from the three Northland district councils and a crown-appointed advisor, David Hawkins. The Working Group looked at delivery options on a "what’s best for Northland" basis, rather than a district-by-district perspective. It met four times over six weeks, covering water services issues (growth, compliance and affordability), financial modeling of options, and what a shared WSO could look like in practice. According to the Whangārei district council officers report, "the information presented to the Working Group indicates that while WDC can deliver water services through an in-house business unit, there are greater challenges in Kaipara, particularly around growth, and in the Far North, particularly around compliance, delivery, and affordability. A regional CCO is workable from a high-level financial perspective and provides better outcomes for water delivery in Northland as a whole." The Working Group recommended the three councils establish a water CCO by 1 July 2027 for the delivery of drinking water and wastewater services in Northland, with stormwater to remain with each council. The Working Group identified the following key principles for the establishment of a WSO: • initially financials are ring-fenced to each council • initially water charges are not harmonised across the three founding council areas • the CCO review ring-fencing of finances and harmonising charges within 3 years from its commencement date • a shareholder council be formed that includes two representatives of each founding Council, of which at least one must be an elected member • when scheduling growth projects, the CCO is to align with each council’s growth strategy. Whangārei District Council meets this Thursday 24 July to consider the Working Group's recommendations. Far North and Kaipara are expected to follow with their decisions over the next week. #MartinJenkins #LocalWaterDoneWell

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