KWM’S ESG INSIGHTS
From risk management and mitigation, to decarbonisation and adaptation, our clients are working hard on the transition to a net zero economy. We are with them on the journey.
Our experts from around the world share their knowledge and insights to help you to navigate a constantly evolving landscape. We make the complex simple.
Navigating The Net Zero Transition: Spotlight on Southeast Asia, Japan and the Republic of Korea
The reality of the ground we need to cover to reach global decarbonisation targets is driving policies, investment and innovation. To do this effectively and within desired timeframes it’s critical that we embrace collaboration by working together, sharing knowledge and simply connecting people.
Keep up with key dates: whether it’s a reporting deadline, a chance to submit to a policy review or a milestone change.
Our analysis suggests ASX50 entities are for the most part comfortable with their climate governance structures, long term targets and reporting frameworks, with only incremental changes in these areas since our last report.
Navigating The Net Zero Transition: Spotlight on Southeast Asia, Japan and the Republic of Korea
The reality of the ground we need to cover to reach global decarbonisation targets is driving policies, investment and innovation. To do this effectively and within desired timeframes it’s critical that we embrace collaboration by working together, sharing knowledge and simply connecting people.
OUR ESG INSIGHTS
As Australia moves towards achieving net zero by 2050, the construction and real estate industries (and their regulators) are looking beyond emissions from the operation and maintenance of their assets but also looking at reducing carbon emissions embodied in building materials and generated by the construction of buildings.
27 September 2024
The long-awaited update to the JORC Code is here, with JORC releasing the 2024 Draft JORC Code for public feedback on 1 August 2024.
20 September 2024
As the world transforms to net zero emissions and undergoes the most significant changes since the industrial revolution, the Federal Government’s decarbonisation plan aims to make Australia an indispensable part of the global economy.
13 September 2024
Johor sits at the southern tip of Malaysia, minutes away from neighbouring Singapore. Lesser known than the nation’s capital, Kuala Lumpur, and less developed than its most populous state of Selangor, Johor – and its capital Johor Bahru – are rapidly rising in prominence.
29 August 2024
On 22 August 2024, the Australian Senate passed the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024 (Bill) with some minor amendments.
27 August 2024
We talk a lot about global carbon trading markets – yet relatively little about the mechanism by which countries trade emissions reductions. That mechanism - Internationally Transferred Mitigation Outcomes (ITMOs) – is a strategic tool for nations to not only comply with their climate commitments but also to leverage their carbon sink resources effectively.
26 August 2024
With mandatory climate reporting imminent, the contents of this publication are poised to become business-critical to more of corporate Australia than ever before.
06 June 2024
The EU's Corporate Sustainability Due Diligence Directive (CSDDD) will pave the way for a new era of corporate due diligence obligations.
22 May 2024
To combat climate change and facilitate Australia’s transition to a low-carbon economy, the Government has introduced various measures to the Climate Change, Energy, the Environment, and Water portfolio in the Budget.
14 May 2024
What rights attach to a carbon credit? Who owns it? The legal nature of carbon credits sounds like a niche concept that only concerns lawyers, but it goes to fundamental aspects of trading and finance that have implications for businesses. And United Nations bodies are working to develop a comprehensive and coordinated legal framework for carbon credits.
26 April 2024
Those who have been waiting to see the Federal Government’s long-awaited ‘nature positive’ reform package will have to wait a little longer, with the Minister for Environment and Water announcing on 16 April 2024 plans to stage the introduction of the reform legislation.
18 April 2024
Environmental, Social and Governance (ESG) is not a new concept for private funds. Most institutional investors and fund managers have had ESG policies in place for many years.
11 April 2024
On 27 March 2024, the Treasurer introduced and read the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024 (Bill) to the House of Representatives.
03 April 2024
OnBoard delivers our leading market insights purposefully curated for directors, general counsel and company secretaries.
27 March 2024
As Australia transitions to a low-carbon economy, we see carbon markets play an increasing role to help achieve net zero ambitions. Staying on top of deadlines and developments is essential.
26 March 2024
The global trend of increased climate litigation showed no signs of abating in 2023. Several new proceedings were instituted in Australia, including by regulators as they take an increasingly active approach particularly in relation to ‘greenwashing’.
21 February 2024
We hope you find this edition of NEXT to be thought provoking and we look very much forward to continuing the conversation with you across the year.
19 February 2024
The long-awaited renewal of the China Certified Emission Reductions (CCER) market is expected to drive trading activity, develop the market and spur innovation. This is a critical step towards China reaching its ‘30.60’ decarbonisation target: peak emissions by 2030 and carbon neutrality by 2060.
26 January 2024
In an unexpected turn of events, the Federal Government’s Nature Repair Market legislation – which had stalled in the Senate and recently been deferred until at least April 2024 – has now passed after the Government struck a last-minute deal with the Greens.
07 December 2023
In our country chapters, we look at initiatives to encourage the transition to a net zero economy – across emissions reduction targets, carbon markets, financing, transport, housing and buildings, and agriculture. Here is a brief snapshot. More detail and examples are in the country chapters.
24 November 2023
The reality of the ground we need to cover to reach global decarbonisation targets is driving policies, investment and innovation. To do this effectively and within desired timeframes it’s critical that we embrace collaboration by working together, sharing knowledge and simply connecting people.
24 November 2023
Among the largest economies in the world by GDP and a powerful member of the G20, the Republic of Korea has developed a strong industrial activity sector in recent decades.
24 November 2023
Japan is the third-largest economy in the world and among the world’s highest emitters. Home to approximately 126.5 mn people, Japan consists of several thousand islands most of which are covered by mountains and surrounded by steep shorelines. The topography limits renewable energy development and Japan’s susceptibility to natural disasters such as typhoons and earthquakes has impacted nuclear generation following the 2011 Fukushima Daiichi Power Plant accident. Triggered by the Great East Japan Earthquake, this event tipped Japan’s economy into recession. A little over a decade on, Japan’s economy is showing signs of recovery – and investors are circling.
24 November 2023
Indonesia is at a critical juncture in shaping its energy future. The archipelago nation faces the challenge of boosting energy supply by ensuring universal electricity access for its people by 2040, while cutting carbon emissions to reach its net zero target by 2060. This is happening against a backdrop of one of the fastest-growing economies globally. Indonesia has experienced rapid economic growth since the 1970s, reducing poverty levels across its population of almost 280 million. Now, climate change threatens its diverse ecosystem. Communities are vulnerable to flooding, rising sea levels and heatwaves.
24 November 2023
Vietnam is among the fastest growing markets in ASEAN. Strategically located in the centre of Southeast Asia, its GDP, foreign direct investment and middle-income population have all grown over the past decade. Vietnam’s share of annual global emissions is relatively small - approximately 0.88% in 2021 - for a population of almost 100 million, or roughly 1.2% of the world’s people. The country is severely affected by climate change. With 3,260 km long coastline, many low-lying cities and river delta regions, Vietnam ranks first in the world for exposure to flooding alongside Bangladesh. The World Bank estimates Vietnam lost around US$10 billion in 2020 due to climate impacts. Without appropriate adaption and mitigation measures, climate change could cost Vietnam around 12% to 14.5% of GDP annually by 2050 according to World Bank estimates.
24 November 2023
The Philippines is among the world’s most vulnerable countries to climate change. Increases in the frequency and intensity of typhoons, changes in rainfall patterns, rising sea levels and increasing temperatures all pose a serious threat to the archipelago nation’s ecosystems and its 100 million+ population. This makes poverty-reduction efforts even harder.
24 November 2023
The net zero transition presents significant opportunities for Singapore, with its export-oriented, innovation-hungry, open economy. Yet it also carries significant challenges. Singapore is managing water and food scarcity, and rising sea levels threaten the low-lying landmass.
23 November 2023
Treasury released its Sustainable Finance Strategy Consultation Paper (Strategy) on 2 November 2023, signalling a significant transition for the Australian sustainable finance industry from being largely market-led to a government-led approach.
16 November 2023
On 12 October 2023, the Task Force on Climate-related Financial Disclosures (TCFD) published its sixth and final status report.
03 November 2023
On Friday 20 October, the Commonwealth Government announced its proposed updates to the Australian Government’s Climate Active certification program.
02 November 2023
Nickel is set to become one of the most important critical minerals in the net zero transition, reaching a predicted global market of almost US$60bn within 5 years. Future industry growth will be driven by the dramatic increase in demand for lithium-ion EV batteries – of which nickel is a key component. Given the exponential growth in demand, there is still a high risk that supply will fall short in the coming decade.
12 October 2023
The sustainable finance market is evolving at an accelerating pace. One recent trend garnering growing interest from market participants is the development of “sustainability-linked derivatives” (SLDs).
23 August 2023
Carbon markets are an instrumental tool to assist countries in achieving GHG emissions reduction commitments. Emissions trading systems in smaller countries face the problem of insufficient market participants and investors which can result in volume and liquidity levels which are insufficient to determine market pricing effectively. To address this, some countries and regions have harmonised emissions trading systems, to create larger and more liquid carbon markets. In this insight, we consider potential opportunities for cooperation and harmonisation of carbon trading across Southeast Asia and the broader region.
18 August 2023
China’s efforts to encourage businesses to cut emissions and improve carbon data transparency are critical to achieving a sustainable future. From the national emissions trading system expanding and opening to foreign investment, to carbon cutting incentives for individuals, there is a rising tide of carbon-related initiatives across China.
01 August 2023
The 2023 Federal Budget allocated nearly $200 million over 6 years to address entrenched community disadvantage, including $11.6 million to promote social impact investment. It’s not huge, but a start.
17 July 2023
Treasury has released its second consultation paper on climate-related financial disclosures. This paper builds on Treasury’s initial consultation paper released late last year. The initial consultation paper received 194 submissions, most of which are publicly available here.
05 July 2023
The sustainable finance market is evolving at an accelerating pace. One recent trend garnering growing interest from market participants is the development of “sustainability-linked derivatives” (SLDs). The first SLD was issued in August 2019. In under four years, based on a market survey conducted by the International Swaps and Derivatives Association (ISDA), the number of banks, companies, consultants and other market participants worldwide that have engaged in SLD transactions has grown considerably. This insight explores the key features of SLDs, and outlines some of the documentation and potential regulatory issues for market participants that are considering engaging in SLD transactions. We also set out our key tips for navigating these issues.
21 June 2023
This is a result of the important role finance flows play in the global shift toward a low-carbon, climate-resilient economy[1]. The stakeholders range from pension funds to banks and import-export institutions, which not only face the continuing indirect risks arising from climate action brought against clients and investees, but are also increasingly the direct targets of climate action for their roles in financing projects associated with significant carbon emissions.
01 June 2023
The eagerly anticipated report on the statutory review of Australia’s Modern Slavery Act 2018 (Cth) (Act) has been released (Report).
31 May 2023
A new more rigorous and consequential age has begun for companies’ climate and sustainability considerations.
04 May 2023
In the latest insight from our Carbon Markets Series, we visit the regimes around the world that are driving change.
29 March 2023
The Safeguard Mechanism reforms are set to become law with some amendments, after the Federal Government struck a deal with the Greens to secure their support.
28 March 2023
When China’s national carbon market launched in 2021, it promised to act as a powerful tool in combatting climate change.
27 March 2023
Almost every year since 1995, nations (or ‘states’ as they’re officially known) that are signed up to the United Nations Framework Convention on Climate Change (UNFCCC) have met to check progress towards cutting greenhouse gas emissions (GHG) and negotiate any new developments. Carbon markets were a key feature of the most recent Conferences of the Parties (COP) – COP26 in Glasgow and COP27 in Egypt. Agreement on a carbon markets ‘rulebook’ – referred to as Article 6 by many, named for the section of the Paris Agreement containing the measures - was a critical step towards scaling carbon markets globally. That includes a central UN mechanism to govern carbon trading and on cooperation between nations. So what is Article 6, what was agreed, and what does it all mean?
21 March 2023
Green bonds have surged in use over the past two years, but the future growth and effectiveness of the market is threatened by difficulties confirming the credit quality of an issuer and ensuring proceeds are used to fund green projects.
21 March 2023
After an ambitious start to its term in office, the Federal Government is showing no signs of slowing down as it paves the way for significant environmental reform and a nature positive Australia.
09 March 2023
King & Wood Mallesons (Richard Mazzochi, Partner and Claire Potter, Registered Foreign Lawyer (England and Wales)) is delighted to have worked with the Global Financial Markets Association (GFMA) and other leading industry bodies in preparing the GFMA response to the public consultation published by the International Organization of Securities Commissions (IOSCO)[1] on recommendations for establishing sound Compliance Carbon Markets and on key considerations for enhancing the resilience and integrity of Voluntary Carbon Markets.
21 February 2023
Directors beware! A world-first derivative shareholder action has been commenced by ClientEarth in the High Court of England and Wales against 11 Shell directors for breach of their directors’ duties.
20 February 2023
We describe the development of carbon trading markets in Southeast Asia and anticipate the direction and prospects of further development of these markets in the foreseeable future.
16 February 2023
The role of carbon markets is expected to increase rapidly in the coming years as nations continue to focus on sustainable economic development and drive towards a net zero economy. Understanding how they work and the role they can play is critical.
13 February 2023
The Final Report of the Independent Review of Australian Carbon Credit Units (ACCUs) was released on 9 January 2023 (the Report). We considered the independent review in our October update on the proposed biodiversity certificates scheme.
08 February 2023
The year 2023 is shaping up as a significant year for legislative reform in Australia, with comprehensive changes to fundamental environment and climate change laws expected.
30 January 2023
As pressure grows to achieve net zero by 2050, organisations need to know how regulators are investigating and enforcing ‘greenwashing’.
14 December 2022
Proponents of environmental, social and governance (ESG) practices have at times been accused of prioritising values over value, and concerns around the financial basis for ESG investment can become an obstacle for even the best-intentioned of businesses.
08 December 2022
On 20 November 2022, the requirements relating to management and disclosure of climate-related risks by fund managers (with less than HKD8 billion AUM) under the updated SFC’s Fund Manager Code of Conduct started to apply. This KWM Brief Sheet sets out 10 points on climate-related compliance and risk disclosure for fund managers under the current SFC regime in Hong Kong.
24 November 2022
Greenwashing mentions in global financial press have more than doubled since January. Regulators are intensifying efforts as businesses transition to a net zero economy, fuelling a surge in interest.
09 November 2022
On 18 October 2022 trade ministers in Australia and Singapore signed the Green Economy Agreement (GEA).
20 October 2022
On 10 October 2022, the Department of Industry, Science and Resources (DISR) opened submissions on exposure draft legislation to reform the Safeguard Mechanism under the National Greenhouse and Energy Reporting Act 2007 (Cth) (NGER Act).
12 October 2022
On 26 August 2022, the Government announced the creation of a biodiversity certificates and trading scheme (BCS).
07 October 2022
By leveraging strong economic and trade complementarities, Australian and Chinese businesses are well positioned to unlock new opportunities and deliver a greener future.
14 September 2022
In 2020, 85% of China’s primary energy needs were met with fossil fuels and 72% in Australia. This is the base from which China and Australia must transform their energy generation and use.
14 September 2022
Surging demand for exports of iron ore, coal and minerals over the last three decades, much due to China’s growth, has brought significant wealth to Australia.
14 September 2022
Transport is among the most emissions-heavy sectors. In 2019 the sector represented 23% of global energy-related emissions according to the 2022 Intergovernmental Panel on Climate Change (IPCC) Mitigation Report.
14 September 2022
The greening of our buildings and cities is critical in the pursuit of a net zero economy.
14 September 2022
According to the United Nations’ financing roadmap to net zero, the lion’s share of the USD32 trillion of funding needed for decarbonisation efforts in the next decade must come from the private sector.
14 September 2022
Agriculture is both affected by climate change, and a contributor to troubling emissions. Governments around the world will not meet their climate goals without major changes to food production and consumption.
14 September 2022
The issue of a global climate challenge and agreed emission targets by definition crosses borders. Confronting it requires international cooperation.
14 September 2022
In this report, we explore opportunities for Australia and China to work together and share knowledge to achieve net zero. We shine a light on examples to inspire and inform others.
14 September 2022
From plastic-free flights to biofuels, the traditionally heavy-polluting aviation industry is determined to cut carbon. What does it all mean for airlines, lessors, financiers and passengers?
05 September 2022
The Australian Federal Government’s Climate Change Bill, which incorporates Australia’s new emissions reduction targets of 43% below 2005 levels by 2030 and net zero emissions by 2050, is well on the way to becoming law.
29 August 2022
In this alert we explain what investors need to know about China’s National ETS – what it covers, how it operates and the opportunities that it presents. China is the world’s largest producer of wind and solar energy and its market-leading technology industries will drive clean energy transition.
24 August 2022
The ability to monetise carbon and trade carbon credits through carbon markets is a core component of the global transition to net zero, without which global efforts to meet critical carbon reduction targets will be severely impacted. China’s national emissions trading scheme (the National ETS) is set to become the world’s largest carbon market by both trading volume and value, and will play an important part in the global net zero transition. The National ETS began trading in July 2021 and currently operates in parallel with nine pilot schemes (each a Pilot Scheme). China’s ability to peak emissions by 2030 and be carbon neutral by 2060 (the 30/60 strategy) relies in part on its ability to demonstrate to the world that it has the necessary infrastructure in place to maintain the integrity of the system that it has created to realise its 30/60 strategy.
03 August 2022
Integrity constitutes a fundamental aspect of a successful carbon market.
13 July 2022
Business is navigating a moment of great responsibility. On the issues that matter - like climate change, economic security and social equality – business is being called to lead.
15 June 2022
The UN Secretary-General António Guterres delivered a stark warning on April 27: “We cannot afford slow movers, fake movers or any form of greenwashing.”
01 June 2022
Our report on climate-related disclosure and governance trends of the ASX50 in 2021 includes:
31 March 2022
Australia’s potential for developing carbon capture and storage (CCS) projects has been touted for some time — legislation for CCS projects has been in place in Victoria and Queensland for over a decade.
30 March 2022
It is the island home of some of the world’s longest-living people and Wenchang chicken, a dish popular in mainland China and across south-east Asia.
17 December 2021
Whilst a unified National ETS is new to the Mainland, the concept and operation of a carbon market is not. The Mainland started to explore carbon emission trading a decade ago when the National Development and Regulatory Commission approved several regional pilot markets for trading carbon emissions allowances ("CEAs") in 2011. Those pilot schemes have been successful and continue to operate in parallel with the new National ETS. The long term goal is for the regional pilots to be consolidated into the National ETS which will be a cornerstone in the Mainland's policy for combatting climate change.
09 November 2021
If adopted, the CBAM will impose a levy on imports in carbon-intensive sectors from countries with lower environmental standards than the EU by 2023. This is likely to directly affect Australian and other non-EU businesses from those sectors who export into the EU market.
18 August 2021
China is poised to rollout a new national emissions trading scheme market demonstrating that China is committed to becoming a global leader in climate mitigation and renewable energy technologies. China's national strategy is to achieve peak levels by 2030 and carbon neutrality by 2060 (the "3060 Target"). This represents a myriad of opportunities for non-Chinese businesses to invest and trade in the renewable energy and green finance sectors.
03 June 2021
The global trend of increased climate litigation showed no signs of abating in 2023.
Chambers ranking
HOW WE HELP OUR CLIENTS
King and Wood Mallesons (KWM) is pleased to have advised Jet Zero Australia (Jet Zero), an Australian Sustainable Aviation Fuel (SAF) developer, on its $14m investment funding for Project Ulysses, the company’s flagship SAF project in Townsville.
02 October 2024
King and Wood Mallesons (KWM) is proud to have acted for Housing Australia, Northern Australia Infrastructure Facility and ANZ on the financing of Queensland’s biggest social and affordable housing project, developed by a consortium led by Tetris Capital and Community Housing Limited.
24 September 2024
King & Wood Mallesons (KWM) has advised the Clean Energy Finance Corporation (CEFC) in its innovative debt finance package of $490 million to EnergyCo NSW.
29 May 2024
King & Wood Mallesons has assisted mass transit company Kinetic to new strategic financing arrangements, raising in excess of A$3.5bn across multiple transactions.
15 April 2024
King & Wood Mallesons (KWM) has advised New Forests, a global investment manager of nature-based real assets and natural capital strategies, on the capital raising for its Tropical Asia Forest Fund 2 (TAFF2), which achieved its final close in December 2023.
08 April 2024
King & Wood Mallesons (KWM) has advised Lightsource bp on the auction sale of its 1GWP Australian solar farm portfolio (with ready-to-build battery storage systems) to Beijing Energy International Holding Co., Ltd. The portfolio consisted of 3 operational solar farms and 2 development stage solar farms located in New South Wales, Queensland and Victoria.
08 January 2024
King & Wood Mallesons (KWM) has advised leading alternative investment firm Stonepeak on acquiring a preferred equity interest in AGP Sustainable Real Assets (AGP). AGP invests in, develops and operates sustainable real assets across renewable energy, infrastructure and communities, and natural capital.
13 November 2023
King & Wood Mallesons (KWM) is proud to have received Climate Active Carbon Neutral certification of our legal services.
09 October 2023
King & Wood Mallesons (KWM) has advised ANZ in its role funding an innovative new private development financing for Super Housing Partnerships (SHP), which includes social, affordable and market housing and specialist disability accommodation.
15 September 2023
King & Wood Mallesons (KWM) advised Asia-Pacific & Japan (APJ) hyperscale data centre operator, AirTrunk, in obtaining multi-currency, sustainability-linked debt financing of $4.6 billion (AUD equivalent).
24 August 2023
KWM is delighted to be advising Allkem Limited on its A$15.7B all-stock merger of equals with Livent Corp, to create a leading global lithium chemicals producer.
15 May 2023
King & Wood Mallesons (KWM) has advised ACT Government on the appointment of global specialist energy storage business, Eku Energy to deliver, operate and own a large-scale battery storage facility as the next stage of the Big Canberra Battery.
05 May 2023
King & Wood Mallesons (KWM) is delighted to have advised AEMO Services on the first tender for Long-Term Energy Service Agreements (LTESAs) under the NSW Electricity Infrastructure Roadmap.
01 May 2023
