In brief

This alert provides an overview of the Australian Government’s proposed regime in respect of mandatory climate-related financial disclosure (CRFD Regime). It addresses potential liability for directors of life sciences and biotechnology companies in such disclosure.

Key takeaways

• The proposed CRFD Regime is still in draft but is expected to be finalised in the near future following the Senate Economics Committee’s (Committee) recommendation that the Bill (as defined below) be passed.
• The proposed CRFD Regime will put in place further disclosure requirements to which directors of all Australian companies must adhere.
• There will be a phase-in for compliance, depending upon the size of the company.
• Once the CRFD Regime commences, directors of life sciences and biotechnology companies which would be ‘reporting entities’ under the CRFD Regime will need to specifically disclose climate-related risks and may face personal liability for misstatements or omissions.
• This will be a new area of exposure for life sciences and biotechnology companies.
• Directors should now consider the systems and procedures they will need to have in place to ensure sufficient reporting.

Click here to access the full alert.