Climate Change Data

Environmental Metrics

ESG Focus Areas

• Diversity
• Remuneration
• Corporate Social Responsibility
• Sustainability
• Responsible Investing

Social Achievements

• Insurer QBE committed a minimum $100m towards socially progressive projects in Australia and globally as part of its Premiums4Good program.

Climate Goals & Targets

Environmental Challenges

• Patchy modern slavery reporting in the UK textile and clothing sector.
• Insufficient attention to conflicts of interest in the finance industry.
• Trust deficit between the financial industry and the broader community.
• Sloppy reporting of executive pay figures by some S&P 500 companies.
• Lack of competition and poor governance in the Australian superannuation system.
• Poor quality data and disclosure in the superannuation system.
• High concentration of Bankwest's exposure in commercial property.
• Insufficiently challenging risk function at CBA.
• Lack of an executive forum for considering non-financial risks at CBA.
• US banks loosening terms of business loans due to strong competition.

Mitigation Strategies

• ASIC's new 'more intrusive, enduring and, with onsite visits, more physical' approach to supervision.
• ASIC's Wealth Management Project expansion and acceleration.
• ASIC's encouragement of regtech solutions.
• Productivity Commission's 22 draft recommendations to modernise the Australian superannuation system.
• APRA's recommendations to improve the governance of superannuation boards and outsourcing arrangements.
• CBA's remedial program to educate Bankwest staff and raise standards in business banking.
• CBA's establishment of an executive committee for considering non-financial risks.
• ASIC's proposal to implement a modified AFS licensing regime for foreign financial service providers.
• US Financial Services Regulatory Reform Act to roll back Dodd-Frank regulations.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Governance
• Diversity
• Remuneration
• Climate Change
• Social Licence to Operate

Governance Achievements

• Revised ASX Corporate Governance Principles and Recommendations released.
• AICD announced plans to issue additional guidance on remuneration and governance issues, a consultation on directors' duties and on measures to enhance accountability, and plans to issue stronger member code of conduct

Climate Goals & Targets

Environmental Challenges

• Women remain underrepresented in leadership roles, and the systemic pay gap persists.
• Ethnic minority underrepresentation in board positions.
• Climate activists targeting QBE.
• Concerns about the sale of add-on insurance.
• Misconduct across the financial sector driven by greed and pursuit of short-term profit.

Mitigation Strategies

• AICD plans to lead a conversation on directors' duties and stakeholder interests.
• AICD plans to strengthen its Member Code of Conduct.
• AICD plans to enhance accountability through consultations.
• AICD plans to issue more guidance on governance and remuneration.
• Revised ASX Corporate Governance Principles and Recommendations address culture, values, and trust.
• Government intervention to accelerate progress in appointing directors from ethnic minority backgrounds.
• Voluntary ethnicity pay gap reporting in the UK.
• NAB made changes to incentives for non-executive staff.
• QBE committed to enhancing climate risk disclosure.
• APRA will focus on strengthening the prudential framework to lift the bar for industry in terms of governance, remuneration practices, and the management of non-financial risks.
• ASIC encourages listed companies with material exposure to climate risk to strongly consider reporting under TCFD on a voluntary basis.
• Government actions to implement the Financial Services Royal Commission's Recommendations.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ASX Corporate Governance Principles and Recommendations, TCFD

Environmental Metrics

ESG Focus Areas

• Shareholder Activism
• Disclosure and Reporting
• ESG
• Circular Economy
• Nature-related risk
• Modern Slavery

Environmental Achievements

• Home Depot's enhanced disclosures around its wood sourcing policy and strengthened standards to protect high-risk regions (e.g., Cerrado in Brazil) to eliminate deforestation and forest degradation from its supply chains by fiscal year 2026.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Greenwashing in the superannuation sector
• Insufficient climate disclosure requirements for banks
• Lack of appropriate compliance systems and controls in BNPL providers to comply with the DDO
• Weaknesses in insurers' internal processes, procedures and policies in responding to extreme weather events
• Growing protection gap in home insurance
• Insufficient regulation around AI

Mitigation Strategies

• ASIC's focus on enforcing existing laws to tackle greenwashing
• Investor coalition pushing for tougher climate disclosure requirements for banks
• ASIC accepting enforceable undertaking from BNPL provider to address DDO compliance issues
• ASIC putting insurers on notice to address weaknesses in their processes, practices and resourcing
• Industry taking steps to improve claims handling and catastrophe preparedness
• Government consultation on proposed cyber security laws
• ASIC's review into the use of AI in financial services

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Home Depot's strengthened wood sourcing standards

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed