The Visibility of Climate‐Related Disclosures by Large Australian Companies

Peijing Yang, Tanya Fiedler and Clinton Free

Australian Accounting Review, 2024, vol. 34, issue 4, 265-282

Abstract: Mobilising the work of Brighenti (2007), we assess the visibility of climate‐related disclosures across different reporting venues and sectors for the 2022 reporting period. We do so by analysing the content of the corporate reports of 28 ASX50 companies. This is supplemented by articles published in the Australian media and on prominent activist investor websites. We find that physical climate risks are often under‐reported or superficially addressed in company reports, whereas transition opportunities related to a low‐carbon economy are more frequently disclosed. This discrepancy suggests a pattern of selective disclosure emphasising more favourable outcomes and potentially obscuring the full spectrum of climate‐related risks and opportunities. In contrast, transition risks are supra‐visible because of the attention from media and activist investors—particularly in the energy and materials sectors. Our results reflect concerns raised by regulators with regard to greenhushing (the withholding of information) of physical and transition risks and greenwashing (exaggerated claims) of transition opportunities. We also find inconsistencies in reporting practice, with implications for comparability and the faithful representation of climate‐related information.

Date: 2024
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