With Australian AGM season and COP 26 at the forefront of everyone’s minds, the Australian Government has now committed to net-zero emissions. Demand from investors on company action and disclosure around climate change, environmental, social and governance (ESG) considerations are also taking centre-stage. Achieving this shift without falling prey to greenwashing now seems to demand stronger regulatory and governance measures.

As investors and companies focus on the Australian AGM season, this Minerva briefing looks at ESG developments in the market. ESG activism plays an important role in driving the Australian market into the future. Indeed, ESG challenges have played a major role in shaping the Australian market, including the catastrophic 2019 bushfires, climate warming concerns, considerations of indigenous rights, and particularly Australia’s reliance on exports during the global COVID-19 health and economic crisis. Good ESG practice is critical in avoiding reputational damage and building business resilience to crises such as the pandemic.

Specifically, it investigates several regulatory initiatives and reviews launched in Australia over the last few years. The initiatives cover a wide range of topics, ranging from greenwashing to calls for greater consideration of financial risks of climate change, as well as the operation of the stock exchange and market more broadly, with proxy advisors and large asset managers under the spotlight.