A lack of clear and cohesive action at the federal level prompted the Governance Institute of Australia to develop a guide for boards and management on climate change and how to achieve net zero.
Recent major international climate policy developments, significant shifts in expectations on organisations to take action — including disclosing climate risk — and ongoing concerns about a lack of firm action at a national level have left many organisations grappling with increasing pressure on climate change, the institute said.
Governance Institute CEO Megan Motto said the guide was designed to be used as a roadmap to net zero by large and small businesses across all sectors and was based on findings from a specially convened working group.
“Many organisations still do not see climate change as an immediate threat, but recent extreme weather events have confirmed that climate and climate risk management need to be front of mind for every organisation. And this mindset shift needs to happen immediately,” Motto said.
Targeted to senior managers and directors as they build climate into their organisation’s strategy, the guide provides a clear and practical framework to take the next steps on the path to net zero. Motto said board buy-in was essential, with the roadmap including tips on how to engage your organisation — top down — on the key issues.
“You need a business case, and this must follow a review of how the organisation’s priorities and risks may be impacted by climate change,” Motto said.
Key steps to net zero, outlined in the new guide:
Governance: Orchestrating the climate change conversation. How do you embed climate into the core of an organisation?
Strategy: How do you plan and deal with the challenges related to transitioning to net zero?
Expectations: How do you manage expectations on climate disclosure and action amongst evolving legal expectations?
Reporting: Selecting a framework. How do you select a reporting framework which addresses stakeholder needs?
“The key message is: Do not put this off. Organisations need to recognise that the time to act is now. There can be no delay,” Motto said.
