As we look to open a new office in Brisbane, Australia, we’ve taken a deep dive into what the ESG (Environmental, Social and Governance) state of play looks like across the other side of the world.

While ESG continues to play a pivotal role in many businesses’ strategies across the UK, here we share what the landscape looks like for our friends down under.

Australia government

Recent sources have said that Australia’s government will reportedly investigate ESG and the need for legislation around what this means in early 2023. In an interview with Pro Bono News, The Federal Minister for Financial Services, Stephen Jones, said there is work still to be done and that Australia is about five to ten years behind the rest of the world in regard to ESG regulation.

Will Australia follow the EU with ESG regulations?

The Principles for Responsible Investment (PRI), UNEP FI and the Generation Foundation has reportedly called on Australian policymakers and regulators to give guidance and support for investors to direct capital towards net zero – in order to help tackle the climate crisis.

The net-zero goal is critical for the planet, and investors have a crucial role to play in making this happen. However, they can only do this through engagement activities and capital allocation.

The Federal Budget

The Australian government is expected to draw more of a focus on ESG legislation, following the Federal Budget, a document that sets out the estimated revenues and expenditures of the Australian Treasury in the following financial year. This is due to be delivered by the Treasurer on 25 October 2022.

It will be the first Federal Budget since the Government committed Australia to a net-zero carbon emissions target by 2050. A lot of focus for the Budget will be how Australia will deal with Scope 2 emissions (indirect greenhouse gas emissions), upscaling energy transmission to replace coal with renewables and tough decisions on making Australia’s own sustainable aviation fuel (produced from sustainable feedstocks) and marine fuel.

What is next for Australia?

It has been noted that Australia acknowledges there is still a lot of work to be done in this area, as there is for many countries across the globe. The Federal Budget will play a huge role in what the future of ESG looks like for Australia and will be a moment the world will hear its longer-term climate change and ESG plans.

There’s no doubt that the decisions made will impact citizens and businesses. Here at Liquid, we will be tuning in on the 25 October to hear what’s next for ESG down under and how they will be supporting greener initiatives in the future.

For further information or guidance on ESG communications, check out our webpage and case studies.