Type of Transition Risk Country Country-specific Developments Regulatory or compliance risk, prompted by certain regulations in the countries of operation Australia • In 2019, Australia introduced a national plan “The Trajectory” that aims to achieve zero energy and carbon-ready commercial (including offices and industrial premises) and residential buildings. This is also a key initiative to address Australia’s 40% energy productivity improvement target by 2030 under the National Energy Productivity Plan. Australia has committed to achieve net zero emissions by 2050. • As of late 2023, the Australia Treasury released a proposal to set out the climate-reporting rules for companies. Under this proposal, companies will need to disclose climate-related information as part of their general financial reporting, starting as early as July 2024 for some companies. As of January 2024, there is a draft legislation that amends the Australian Securities and Investment Commission Act 2001 and the Corporations Act 2001 to introduce standardised, internationallyaligned reporting requirements for businesses, to ensure they are making high quality climate-related financial disclosures. The United Kingdom • In the UK, a Net Zero Strategy sets out policies and proposals for decarbonising all sectors the UK economy to meet its Net Zero target by 2050. • As of 2023, the UK has been working on developing the UK Sustainability Disclosure Standards (SDS) which aims to set out corporate disclosures on the sustainability-related risks and opportunities that companies face. Published by the Department for Business and Trade (DBT), UK SDS will be based on the IFRS Sustainability Disclosure Standards issued by the ISSB. The Secretary of State for Business and Trade will consider the endorsement of the IFRS Sustainability Disclosure Standards, to create UK SDS by July 2024. Following endorsement, UK SDS may be referenced in any legal or regulatory requirements for UK entities. Europe • The European Union has set its plan to reduce greenhouse gas emissions by at least 55% by 2030 and achieve climate neutrality by 2050. Targets are currently being drafted to revise and expand the EU Emission Trading System, adapting the Effort Sharing Regulation and the framework for land use emissions, reinforcing energy efficiency and renewable energy policies. • Furthermore, since January 2023, the Corporate Sustainability Reporting Directive (CSRD) came into force in Europe. This new directive strengthens the rules concerning social and environmental information that should be reported by companies. Companies subject to CSRD will have to report according to the European Sustainability Reporting Standards (ESRS). SUSTAINABILITY REPORT 2023 36
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