CA ANZ supports the Bill in principle as we agree that directors should consider factors beyond profit when driving successful outcomes for the companies they serve. In our opinion, people, planet, and profit all require consideration and alignment of these factors is critical for long-term success of business. 

The factors that directors consider when determining the best interests of a company and its shareholders are not contrary to the factors that are in the best interest of other key stakeholders and wider society. These factors are inter-connected   and all contribute to the overall success of a business.

Against this backdrop of support, we believe the drafting proposed in the Bill could be further improved. We make the following recommendations, which we expand upon in our submission: 

• Clarify existing directors’ duties 
• Define “recognised environmental, social and governance factors” 
• Draw on international approaches
• Aligning reporting to directors’ duties

For more information, view the progress of the Bill.