Isabella Kelly fires up the crystal ball and invites Tim Stutt and Mel Debenham to share their ESG predictions for 2024. Mel discusses the timing tightrope for decarbonisation projects, Commonwealth environmental legislative reform and a very different approach to regulation. Tim queries if there is an elastic start date for mandatory climate reporting, whilst the required corporate uplift crystallises. Shifting landscapes emerge for Australia’s Sustainable Finance Strategy, post-Voice referendum pathways, the EU’s Corporate Sustainability Due Diligence Directive and Australia’s Modern Slavery Act reform. They emphasise the important interrelationship between ESG spheres and close with some federal election musings around balancing energy policy and cost of living, social and biodiversity impacts.

For more, check out the AICD’s Climate Governance Study 2024, for which Herbert Smith Freehills conducted research into ASX 200 governance structures, and the jointly prepared guide Bringing together ESG: Board structures and sustainability.

Tim Stutt and Mel Debenham are joined by Silke Goldberg to debrief COP28 through the lens of four paradigm shifts – (1) climate finance, (2) fast tracking the energy transition and emissions reduction, (3) nature and people, and (4) the “just transition”. They close with reflections on the vital role of lawyers and the legal industry in bridging gaps and fostering agreement.

For more, check out our COP28 hub: https://www.herbertsmithfreehills.com/insights/key-topics/esg/COP28

Olga Klimczak, Natalie Gaspar and Shiv Jhinku take the wheel to explore HSF’s latest Future of Work report. They unpack the key ESG related findings including cost of living, pay and benefit inequalities as a potential trigger for activism, as well as a significant rise in demand for workplace health and wellbeing support. With Australia on the cusp of profound legislative change, and a raft of new sustainability reporting standards increasing business scrutiny, we discuss the new opportunities this provides to proactively and meaningfully engage with employees, particularly in light of Generation Z’s entrance into the workforce.

For more, check out our report: Future of Work 2023: https://www.herbertsmithfreehills.com/insights/reports/future-of-work-report-2023

Lucy McCullagh, Alice Molan and Anna Coroneo return to “the wheel” to discuss Australia’s Sustainable Finance Strategy, recently released by Treasury and including a range of measures to underpin sustainable finance markets as the country transitions to net zero. They unpack the strategy’s three core pillars, being improved transparency through credible and accurate information, financial system capabilities, government commitments and leadership on aligning to global frameworks.

Lewis McDonald, Carolyn Pugsley and Tim Stutt set the scene ahead of COP28 in Dubai with a stocktake of past COPs and sign-posts to the way forward, including new "regulatory technology" and continued investment to support innovation across the energy transition. They also discuss the ‘trilemma’ of energy security, affordability and sustainability.

Check out the biodiversity questionnaire: https://www.herbertsmithfreehills.com/insights/2023-09/the-biodiversity-questionnaire-%E2%80%93-are-you-ready

For more COP28 insights, visit our hub: https://www.herbertsmithfreehills.com/insights/key-topics/esg/COP28

Jacqueline Wootton, Hannah Cassidy and Antony Crockett take the wheel to explore trust in banking, as the sector faces a number of stress tests, including carving out credible positions on social and climate issues, creating new carbon offset markets which operate with integrity and transparency and other challenges explored in HSF’s latest edition of the annual Global Bank Review. They discuss how embracing calls for greater diligence, disclosure, reporting and transparency around ESG issues across the wider business sector might just help banks to balance the competing demands - meeting shareholder expectations and leading on social imperatives. 

For more, check out our Global Bank Review: https://insights.hsf.com/global-bank-review-2023/p/5?utm_source=soundcloud&utm_medium=podcast&utm_term=third-wheel-ep34

Lucy McCullagh, Alice Molan and Anna Coroneo take the wheel to debrief their key takeaways from the Australian Sustainable Finance Summit 2023, including Australia’s progress toward a financial system aligned with sustainability commitments, the creation of an Australian sustainable finance taxonomy, the development of disclosure and reporting standards and the importance of transition financing. They discuss recent innovations such as taking longer term approaches to natural capital and the environment, ongoing partnerships with First Nations communities for better outcomes and the provision of “Blended Finance” to bridge the execution gap between intent and bankable opportunities.

Melanie Debenham is joined by Gemma McKinnon and Bianca Janovic from our Pro Bono and Responsible Business teams to take us through the Regional Dialogue process that led to the Uluru Statement from the Heart and how it relates to the Voice referendum proposal. They discuss the proposed constitutional amendment and principles of the Voice to Parliament. They address some of the more “lawyerly” considerations and practicalities of implementing a Voice to Parliament – as well as its accountability to the community and recognition of 65,000 years of continued care for country by First Nations people.

We recognise that voters must make their own decision at the ballot box and hope to assist people to make their own informed decision. 

For more information, we provide some further resources:
•Law Council of Australia’s material on the Referendum: https://lawcouncil.au/policy-agenda/the-referendum-for-an-aboriginal-and-torres-strait-islander-voice  
•Joint Select Committee Parliamentary Inquiry materials (e.g. final report, hearing transcripts and submissions): https://www.aph.gov.au/News_and_Events/Watch_Read_Listen and https://www.aph.gov.au/Parliamentary_Business/Committees/Joint/Aboriginal_and_Torres_Strait_Islander_Voice_Referendum/VoiceReferendum/Public_Hearings 
•Australian Electoral Commission, ‘Referendums… it’s been a while’: https://www.aec.gov.au/referendums/ 
•National Indigenous Australians Agency Voice: https://voice.niaa.gov.au/ 
•AUSPUBLAW blog: https://www.auspublaw.org/