The Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024, which mandates climate-related financial reporting starting from 1 January 2025 for certain entities in Australia, has passed the Senate of the Australian Federal Parliament and is expected to become law imminently. 

CA ANZ and Energetics have collaborated on a general information guide on climate scenario analysis. The guide, which forms a part of a series of general information guides, aims to provide introductory information to assist finance professionals and finance teams to gain an understanding of climate scenarios as a part of their preparation for mandatory climate-related financial disclosures in Australia. The information guide outlines what scenario analysis is, as well as the value of a scenario analysis and how to get started. 

For further information on scenario analysis: 

Climate Change Authority, Sector Pathways Review

Climateworks Centre, 2023 Impact report: Net zero foundations

Network of Central Banks and Supervisors for Greening the Financial System, Seven different scenarios to assess transition and physical risks

In New Zealand, where mandatory climate-related disclosures commenced on 1 January 2023, the External Reporting Board (XRB) has a fact sheet on scenario analysis and climate-related disclosures which clarify the definition and purpose of scenario analysis for Aotearoa New Zealand Climate Standard 1: Climate-related Disclosures (NZ CS 1).

To continue the conversation with other Chartered Accountants and read CA ANZ’s weekly update – Sustainabites - join the Climate and Sustainability group on My CA (member login required).

If you have suggestions for more questions, responses or just a different perspective please let us know at [email protected].