In a recent panel hosted by the Australian Banking Association, ASIC Chair Joe Longo delivered a powerful message on the importance of transparency and disclosure in relation to climate goals. He shed light on the emerging issue of “greenhushing”, where companies choose not to disclose their environmental initiatives, fearing public scrutiny.
Mr. Longo firmly believes that “greenhushing” is a detrimental practice. By keeping their climate goals hidden, companies fail to engage with stakeholders effectively, including consumers, investors, and the broader economy. This lack of transparency not only hampers trust but also gives rise to “greenwashing”.
ASIC’s role in this context is pivotal. It aims to define and enforce disclosure obligations, ensuring businesses are accountable for their claims. Mr. Longo stressed that this is perhaps the most significant change in a generation. With stakes so high, he underscored the need for a consistent approach to disclosure across various sectors, including superannuation, insurance, and investment activities.
As we navigate the global transition towards sustainability, the expectation of governance will only continue to rise. Hence, it is imperative for companies to proactively disclose their climate goals and actions to foster trust, attract investment, and contribute to a better future.
King Irving can assist you in elevating your governance standards and foster trust among investors by increasing your transparency and authenticity in your climate efforts.