Australia still failing in efforts to tackle corruption and climate transparency in resource sector

G7 moves to strengthen climate risk disclosures and the US revisiting anti-corruption laws for resource companies shows Australia still in the dark on transparency says NGO coalition, Publish What You Pay Australia.

Yesterday, world leaders at the G7 meeting called for progress from resource rich countries to introduce mandatory climate disclosures in line with the TFCD. The Biden Administration has also sought comments to determine if current climate related disclosures adequately inform investors and policy makers. This will include an examination of whether listed companies should disclosure scope 3 emissions, reduction targets and an assessment of whether existing frameworks such as the TCFD are sufficient.

The Biden administration is also reviewing the weak anti-corruption rule proposed by the Trump regime in late 2020 for payment disclosures for mining, gas and oil companies, with calls to align the rule with the laws already in place in the 27 EU nations, UK, Canada, Switzerland and Norway.

Clancy Moore, national director of Publish What You Pay issued the following statement:

“These initiatives by the G7 and Biden administration will further disadvantage Australian investors, resource companies and communities who will be left in the dark on financial transparency and climate related risk.”

“There are more than 700 ASX listed resource companies operating in 100 countries globally, with no transparency as to their tax payments at the country or project level. This hurts communities in lost revenue and is a massive corruption risk for investors and Australian companies.”

“With even the IEA advising no new coal or gas project past 2021, governments and investors need companies to disclose all relevant climate related risks including scope 3 emissions and project specific data.”

ENDS