05 Nov COP26 REFLECTS SEA CHANGE IN ATTITUDES TOWARDS ESG REPORTING; CYBERSECURITY: LOCK YOUR DOORS AND WINDOWS
Welcome to this week’s business and media intelligence update.
COP26 REFLECTS SEA CHANGE IN ATTITUDES TOWARDS ESG REPORTING
As world leaders wrapped up the Glasgow climate change extravaganza, investors are already warning that Australian companies need to raise their ESG reporting game or risk being locked out of global capital markets.
The International Sustainability Standards Board (ISSB) reporting standards introduced at COP26 this week will bring sustainability reporting in line with financial reporting, and the UK has become the first G20 country to make climate disclosure mandatory for its largest companies.
If that’s not enough, The Financial Times warned in an op-ed this week that private equity markets are ill equipped to price in the changes to energy infrastructure needed for climate adaptation.
While ESG-conscious fund managers are walking away from investing in carbon intensive sources of energy, fossil fuels still make up 81 percent of the world’s energy mix. So, some tough decisions ahead. As for the missing link: Financial incentives that can only come from government policy.
CYBERSECURITY: LOCK YOUR DOORS AND WINDOWS
When it comes to cybersecurity, it seems many businesses are taking the approach of locking the door but leaving the window wide open.
According to new data from PwC’s 2022 Global Digital Trust Insights Survey, a large majority of Australian businesses are concerned about cyber security risks, but many are failing to do much about it.
The report reveals that over three quarters of Australian business leaders expect a surge in cyber-attacks on the software supply chain next year, but only 33 per cent have adequately evaluated their businesses’ exposure to that threat.
The report also shows that 2021 was one of the worst for cybersecurity with hackers becoming increasingly agile and sophisticated when uncovering vulnerabilities in systems and networks.
Read PwC’s report here.
Crypto currency and assets are set to enter the mainstream financial system with Commonwealth Bank becoming Australia’s first retail bank to offer customers the ability to buy, sell and hold bitcoin and other cryptocurrencies, through its CommBank App.
CBA’s dive into the crypto landscape brings legitimacy to the volatile industry that is gaining significant investor interest.
According to data from JP Morgan, the value of the digital asset market jumped from $US200 million at the end of 2019 to $US2.6 trillion this year. This staggering burst in curiosity has been largely driven by retail investors, especially Millennials and Generation Z members.
In Australia, an estimated eight percent of the population currently invests in cryptocurrency, a figure which has grown rapidly over the last year.
Read more here.
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