Climate in Focus: Climate Governance Forum 2025: Full program now live

The Climate Governance Forum is back in 2025 with a sharpened focus on strategy implementation. Now in its fourth year – and hosted in Melbourne for the first time – the one-day event on Friday 8 August will bring together directors from across sectors to explore the practical challenges of climate oversight. It is the largest event focused on climate governance in Australia. Register now.

The Forum comes at a time when international discussions highlight the rising costs of delayed climate action – from worsening health impacts to economic, environmental, and energy security risks. In Australia, the extent of gas’s role in the energy transition remains a contentious issue, along with the social impacts of the net zero transition and the forthcoming 2035 target.

Also in this newsletter:

• Contribute to our landmark Nature Governance Study
• ‘Bumpy’ net zero transition also brings opportunity: Directors share their views
• Markets update: EU proposes simpler climate reporting rules and higher thresholds; Australian Sustainable Finance Taxonomy released; EnergyAustralia issues Go Neutral apology; Westpac adjusts lending approach after NZBA policy shift.

Nature Governance Study – share your experiences

The AICD invites non-executive directors to contribute to a landmark study on how boards are responding to nature-related risks. In partnership with the University of Sydney Business School, this is the first national study focused on the governance of nature-related financial risks and opportunities. Members were first notified when the survey opened on Tuesday 10 June. This is a reminder to NEDs to complete the short, 10-minute survey before it closes on Monday 23 June. Complete the survey.

Your input will help build a clearer picture of how directors are approaching oversight of nature and biodiversity-related risks and inform the development of future guidance and resources.

Debate over gas’s role continues even as energy market operator backs its use as a transition ‘backstop’

As Australia advances toward a low-emissions energy system, the role of gas in the mix remains a point of contention. While some states are accelerating efforts to phase it out, others see it continuing to play a supporting role in an increasingly renewables-led grid.

Australian Energy Market Operator (AEMO) CEO Daniel Westerman has acknowledged the debate but maintains that flexible gas-powered generation remains a vital ‘backstop' in the transition. His comments come amid rising concern over medium-term supply shortfalls on the east coast. AEMO’s Gas Statement of Opportunities highlights a need for investment in central and eastern markets to address forecast supply gaps, particularly in southern states. Residential and commercial demand is expected to decline over time, while industrial use remains stable.

At the federal level, Environment Minister Murray Watt conditionally approved the extension of Woodside’s North West Shelf project to 2070 – a decision welcomed by industry but criticised by some environmental groups and traditional owners, renewing pressure for long-awaited environmental law reform.

Policy uncertainty remains a key barrier for directors navigating the energy transition. In its submission to the Productivity Commission’s consultation on the five pillars of productivity, including Pillar 5 Investing in cheaper, cleaner energy and the net zero transformation, the AICD outlines how clear national policy and streamlined environmental approvals can reduce the cost of decarbonisation and support investment. Read the submission.

‘Bumpy’ transition also brings opportunity: Directors share their views

In the lead-up to the Climate Governance Forum, we take a closer look at how directors are engaging with decarbonisation, climate risk and the circular economy. Boards are facing growing pressure to act on climate, as regulatory, investor and community expectations continue to rise. Many are grappling with how to make the case for decarbonisation investment while ensuring climate considerations are embedded in core governance and strategy. Read more in our article featuring Zoe Whitton (Managing director, Pollination), Geoff Summerhayes (Chair, Zurich Financial Services Australia) and Barry Irvin AM (Chairman, Bega Group).

Market developments update

• Climate reporting developments: In Europe, the EU Parliament’s Omnibus negotiator has proposed streamlining and lifting reporting thresholds... In Canada, the Canadian Securities Administrators have paused progress on mandatory climate disclosure rules.
• The Australian Sustainable Finance Institute has released Australia's inaugural sustainable finance taxonomy...
• Australia’s emissions flatlined in 2024... Climate and Energy Minister Chris Bowen said Australia remained on track to meet its 2030 targets...
• A World Resources Institute study of 320 projects across 12 countries found that every US$1 spent on climate adaptation yields around US$10.50 in benefits...
• Clean energy investment hits US$2.2 trillion. IEA forecasts global clean energy spending will double fossil fuel investment in 2025...
• EnergyAustralia withdraws Go Neutral product and issues public apology... the publication of this statement.
• Westpac has confirmed it will shift its climate targets from a 1.5°C pathway... Westpac Chief Sustainability Officer Fiona Wild told the AFR.
• Meanwhile, a recent study by UCLA’s Anderson School found that 69.6% of S&P 500 companies disclosed climate-related risks...
• US-based battery supplier Powin has filed for Chapter 11 bankruptcy...
• The South Australian Government has allocated $8.3 million... prepare Adelaide to host the COP31 climate change conference...

For the calendar:

• 8 August – Climate Governance Forum 2025, Melbourne & Online
• Monthly – Climate Governance for Australian Directors Short Course
• Anytime – Introduction to Climate Governance – Free Online Module

We would welcome feedback on this newsletter. To share your thoughts, please contact Kulja Coulston via email at policy@aicd.com.au.