Ai Group welcomed the chance to make a submission on the Exposure Draft ED SR1 Australian Sustainability Reports Standards – Disclosure of Climate related Financial Information (ED SR1).

Overall we consider that ED SR1 represents a good basis for Australia to mirror international reporting approaches. We have a strong preference for consistency with international standards, with variations where necessary to account for Australian circumstances. ED SR1 broadly gets this right. Achieving as much interoperability as possible with standards applied in the United States and European Union will be useful for investors and for businesses that operate in multiple jurisdictions. The preference for cross-industry metrics is useful given the challenges in comparing industry-specific standards and addressing businesses that operate in multiple sectors.

However, there are a few points where the Standard could be improved.