Businesses should be prepared for a rapid increase in TCFD analysis of their climate risk exposure commissioned by third parties such as investors, business customers and climate activists, says leading advisor Dr Karl Mallon of consultancy XDI.
Activist group Market Forces has criticised the big four banks for lending to fossil fuel projects including the Ichthys LNG development, but noted none of them funded a coal mine expansion in 2016.
Instead of just relying on companies to disclose carbon information to investors, it's time to establish a service that uses sophisticated techniques to collect facility–specific environmental data, says a leading international stranded assets think–tank.
BP has acceded to shareholder demands for greater disclosure of its carbon risks, while an Australian super fund has backed efforts to secure a US investigation of reporting by Chevron and ExxonMobil.
Banks and investors no longer automatically accept proponent and government assurances on environmental risk, and are now increasingly doing their own risk analysis on finance for major projects, according to the Investor Group on Climate Change.
A global coalition of institutional investors has told oil and gas companies it expects them to 'stress test' how their operations would fare if dangerous climate change is prevented.
A new Australian Conservation Foundation report says the nation's big four banks can't finance Galilee Basin coal projects while meeting their obligations under the Equator Principles.