Senate Economics Legislation Committee [Part 2], , 2:57:57 to 3:15:00
Discussion on the compliance burden of mandatory climate reporting, specifically Scope 3 emissions, and the Productivity Commission's ongoing review into non-financial corporate reporting.
Topics: Climate change, Emissions reduction
Speakers: Senator Jane Hume, Danielle Wood, Senator Lisa Darmanin, Unknown Speaker
activity uses labor, it uses capital,
would agree with that. Uh it might be worth noting for the record, we're currently doing a review into um uh non-financial corporate reporting which will um pick up uh the scope 3 emissions reporting.
>> Yes, I I saw that that was I think I read about that in the financial review in August. That's part of the tell us once approached for all non-financial disclosures to government. Um I'm interested though for group three entities uh the reporting regime that starts in the on the 1st of July 2027. Um have you looked at how many group three entities will be required to report and the average cost that it's going to be imposed upon them the setup and recurring costs for those that scope
3 reporting. So as part of that inquiry that I mentioned into non-financial corporate reporting um we are considering uh the burden on the group three companies. So um you know that that's a review that's underway. So there's there's only so much I'm able to say but it's certainly part of the the scope of that review.
>> Okay. So that is something that you are looking at but it's part of that review. When's that review due to report?
Uh so we have a interim report uh coming out in the next month in in November uh and uh we'll provide a final report to government uh by the 24th of February.
>> The interim report is that going to the treasur and is it going to be made publicly available?
>> Yeah, for interim reports we put them straight out in
>> straight out. So it goes public immediately.
>> We give it to the treasur a few days in advance but it the timing um we control.
>> Right. Okay. Um are I'm assuming you're aware that um Mr. Long, the former um head of ASICH said that this scope 3 reporting was going to be the biggest change to financial reporting and disclosure standards in a generation.
>> Yes, I have heard that quote. Is there
an understanding or um a recognition in government from government that has been expressed to you that at a time when productivity is going backwards or in your words is stagnant that adding further compliance and red tape um adding further um burden of disclosures to government uh is probably going to make the situation worse rather than better and something needs to be done
about that. I mean, I think there was recognition um in the budget there were some changes that were announced um including changes to the threshold to try and reduce some of those compliance costs. And then I um think sending us this inquiry um is you know it specifically asks in the terms of reference for ways in which some of the compliance burden um not just of scope 3 but of other um non-financial reporting can be reduced. So I think that that is a recognition that this is an issue that governments think worthy of looking at further.
>> Has the government indicated to you that it would be willing to delay implementation of scope 3 reporting or indeed drop it alto together?
>> Uh no they've sent us a terms of reference which is asking us to look at uh look at different options for red
>> looking at ways to make a bad idea more
I mean we when we um look at that we will look at the kind of full suite of uh different options that might be available for for for scope 3.
>> Okay. I I'm just going to follow up with just two questions about some inquiries that you've got on the go at the moment and when they might be reporting. One is that business reporting requirements that's the same is that the same inquiry that that we're you're referring to now.
>> That's right.
>> So the interim report you said is due next month and the final report when did you say? Sorry. Okay. And you said that the interim report will be made public very quickly, but the final report goes to government and then it's their decision.
>> They they need to table it within um 25 25 sitting days.
>> 25 sitting days. Okay. Uh all right. And the other report is the reducing barriers to business dynamism.
Uh so the interim report um also to be released in November. So coming up soon, uh the final report to be provided to government in May next year.
>> Great. Do you have do you have a a specific date in mid- November or is there that's scheduled for both of those
>> I don't have that here right now, but I think we are working towards a specific date. I think we're probably close enough now that we could provide a a date that we're intending.
>> Terrific. All right. Thank you. Thank
>> I think that concludes our questions.
Sorry, I really rushed through those. I
>> Thank Thank you.
>> I like the productivity
>> everyone for their brevity. Uh we u that concludes our questions with you um all the representatives from the um uh productivity commission. So we will suspend now for a short break and we will return at 9:35 p.m. with the Australian Office of Financial Okay, we're broadcasting, so let's get