👉 Background: Get this: Around half of Australia’s 200 largest, public companies have shared some form of climate disclosure last year. And of those, around 70% have included a net-zero commitment goal.

👉 What happened: But while many companies have put forward ambitious plans to de-carbonise... they usually aren’t really as good as they sound. So now, the Treasurer is looking to impose serious penalties for companies that mislead about their green credentials.

👉 What else: The new rules will force businesses and investors to actually show how they are tackling climate change - and reduce misleading investors over their mandatory environmental, social and governance pledges.

What's the key learning?

💡Greenwashing is when businesses make false or misleading claims about their environmental practices and sustainability efforts.

💡Businesses are looking to capitalise on the growing consumer demand for environmentally-friendly products and services. But while many companies have committed to reducing their own direct emissions to net-zero, they haven’t committed to net-zero from their value chain.

💡That means a company that sells a teddy bear in Australia may commit to reduce its own emissions, but it doesn’t measure any of the emissions it has caused by ordering the teddy bears from Taiwan.

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