"Australian lawyers concerned by proposed three-year freeze on corporate greenwashing litigation", 2 Nov 2023

Legal groups and environmental law firms have opposed a federal government proposal that would protect corporations from private litigation over misleading climate claims for three years.

The New South Wales Bar Association is concerned such a temporary ban would restrict access to justice and undermine Australia's goal to reduce emissions to 43 per cent of 2005 levels by 2030...

The moratorium, put forward by Treasury, is all part of a monumental shift in corporate reporting planned to take place from the middle of next year.

From July 2024 it will become mandatory for large Australian companies to outline climate-related risks in their financial disclosures, with smaller businesses to follow in later years...

Some of these businesses are concerned, however, about being opened up to legal action when making disclosures on things like scope 3 emissions, which may make up the majority of many companies' emissions totals.

Scope 3 emissions are generated outside the control of a business. These can include things like gas produced by an energy company which is then burned by a customer...

Treasury is concerned that companies could be overly cautious in making climate disclosures if they are worried about being litigated while the new standards are implemented.

So it has proposed a three-year period from July next year where only regulators, like ASIC, could take action over misleading conduct related to scope 3 disclosures and forward-looking statements...

A three-year moratorium on third-party litigation is not seen as enough time to adapt in several industries...

Major oil and gas company Woodside made a submission to the Treasury also calling for more than three years for a moratorium...

Consultation on Australia's new climate financial disclosure standards is open until March 1...