The physical risks of climate change, along with the challenge of transition to a lower carbon world, present material risks to Australian businesses.

Investors need to be fully informed about the circumstances of a company in order to make optimal decisions about where to invest. Investment opportunities can be assessed only if all the relevant information is available.

This report considers carbon risk disclosure including:

• the rationale for corporate disclosure and the need for carbon risk disclosure. It also briefly outlines Australia's exposure to carbon risk.
• the relevant frameworks for reporting carbon risk in Australia. It summarises the relevant legislative, regulatory and voluntary reporting frameworks, and provides details of international comparators and the FSB Task Force on Climate-related Financial Disclosures.
• the state of carbon risk disclosure practices in Australia, and options for reform.