Companies would be able to defend themselves if they can demonstrate they took reasonable steps to prevent modern slavery.

"This will ensure companies which have adequate processes and steps in place are afforded appropriate protections," Attorney-General Michelle Rowland said.

"Upcoming consultations will help inform the details of the proposed offence and enforcement options to further ensure the reforms are practical, effective and fit for purpose, including consideration of a deferred prosecution agreement scheme and remedies for victims."

Australian Human Rights Institute director Justine Nolan has said the current Australian Modern Slavery Act raises awareness in educating people on the problem but has fallen short in following through and being effective.

Nolan noted it has become more about ticking a box and getting the processes in place rather than being impact or outcome focused.

The government also intends to introduce civil penalties and associated enforcement powers to address non-compliance with existing obligations under the law.

The government will complement the reforms with practical guidance and education initiatives to assist companies to better identify, manage, and remediate modern slavery risks in their supply chains.

"Australians rightly expect that the products they buy are not made on the back of modern slavery, which is why the Albanese Government is delivering a legislative framework with teeth," Rowland said.

"The proposed changes will introduce greater accountability, leveling the playing field for the majority of Australian businesses already doing the right thing."

The reforms will also encourage effective risk management while maintaining a practical and proportionate framework for business, Rowland added.

Last month, over 100 signatories including institutional investors, businesses and unions sent a letter to the Attorney-General advocating for reform to address underlying risks in modern slavery.

Investors such as Australian Ethical, Colonial First State, Future Group, IFM Investors, and more came together to call on the government to ensure the reform is both "meaningful and pragmatic".

The Responsible Investment Association Australasia (RIAA) welcomed the reforms and said it looks forward to participating in upcoming consultations to ensure the reforms are practical, efficient and effective.

"Modern slavery is not only an ethical concern but also a material business and investment risk. Investors increasingly understand that modern slavery poses significant regulatory, legal and financial risks to investments," RIAA said.

"Companies connected to forced labour or exploitation face risks to long-term business sustainability, reputational harm and legal and regulatory scrutiny. In this context, unmanaged modern slavery risks can undermine business resilience, credibility, and access to capital."

RIAA added institutional investors play a vital role in identifying, assessing and addressing modern slavery risks across portfolios and supply chains.

"Responsible investors will be key to the success of the proposed reforms and to ensure Australia's modern slavery regime delivers better outcomes for people affected by exploitation," RIAA said.

The Business Council of Australia (BCA), however, said the addition penalties prioritise paperwork over fixing the problem and will significantly add to the already substantial red tape burden faced by business.

"Modern slavery has no place in Australian business, and we take the responsibility seriously to stamp it out," BCA chief executive Bran Black said.

"The BCA supports the current Act; however, the priority should be practical guidance and effective implementation of existing reporting requirements, not the imposition of vastly more red tape to Australia's already staggering compliance burden."

Black added: "Undermining a robust system with a hastily conceived new offence doesn't help end modern slavery. The priority should be implementing the existing framework properly, not creating a new offence that raises more questions than it answers."

The consulting firm unveiled Sustainability Fusion, a framework, digital tool and advisory offering developed in collaboration with the Aspen Institute to help chief sustainability officers and chief financial officers evaluate sustainability projects using the same financial metrics applied to other capital investments.

The framework aims to bridge the gap between sustainability and finance by translating environmental initiatives into measurable impacts on revenue, costs and risk, allowing executives to better assess investment decisions.

Deloitte Consulting sustainability fusion co-lead Bill Marquard said organisations were under growing pressure to demonstrates the commercial value of sustainability programs.

"Organisations need this framework now more than ever as sustainability and finance leaders are increasingly expected to quantify sustainability investments," Marquard said.

"When sustainability and finance are equipped to speak the same language, they're able to unlock cost savings, reduce risk and generate new commercial pipelines seamlessly."

To support the framework, Deloitte has also launched an AI-enabled web-based evaluator that allows businesses to assess individual sustainability investments and identify where enterprise value can be created across the organisation.

The framework was developed through workshops hosted by Aspen Institute's Business and Society Program and informed by a working group of more than 25 representatives from corporates, non-government organisations and independent advisors.

Aspen Institute sustainability programming lead Felicia Davis said the initiative was designed to help organisations connect sustainability ambitions with financial decisions making.

"This collaboration with Deloitte builds on insights from our network to help organizations move from intention to action, aligning sustainability investments with the financial realities that drive business decisions," Davis said.

Deloitte Consulting sustainability fusion co-lead Laura Bryce said sustainability leaders required better tools to communicate value rather than additional reporting metrics.

"When organisations can clearly articulate the financial value of sustainability investments, they can make decisions with greater confidence, move more quickly on priorities, and build competitive advantage in an increasingly dynamic business environment," she said.

The performance was a result of strong rollover activity and growing super guarantee (SG) contributions in its super business, as well as sound investment returns and organic flows generated over the period.

Net flows for super over the three months was $196 million, which follows the final transition of members to the GROW platform, reactivation of employment platform acquisition channel and improving digital marketing performance, while new member momentum has also lifted in the second half, Australian Ethical said.

Meanwhile, the launch of Australian Ethical Growth Opportunities Fund in March, alongside the Clean Energy Finance Corporation's (CEFC) $125 million investment have provided "a degree of resilience" against the anticipated higher-than-usual redemptions in advised and direct channels during a period of market volatility, it said.

"During the period, we have continued to see strong demand for our approach to investing, with new super member joins increasing in the second half of the year. We have also seen demand growing for our newly launched Growth Opportunities Fund," Australian Ethical managing director John McMurdo said.

"The diversification and resilience of our business model continues to allow us to grow, even in periods of market stress."

Australian Ethical saw negative flows in retail and wholesale investment of $26 million in the quarter, as client capital activities also resulted in negative FUM movement of $8 million.

However, McMurdo noted the final quarter's $650 million investment performance allowed the ethical manager to finish the financial year strongly.

"The new FUM milestone is a pleasing result given the substantial economic and market challenges of FY26," McMurdo continued.

"The decision to build out our investment team and diversify asset classes over recent years, was rewarded in what has been a challenging year for many fund managers, with Australian Ethical achieving positive returns across most of our portfolios, and net-inflows into core product categories."

For the full year, Australian Ethical recorded positive retail and wholesale net flows of $491 million and institutional net flows of $173 million, partially offset by the previously disclosed inorganic institutional outflow associated with the Australian Unity Bank mandate.

The CEO Pay in ASX200 Companies report highlights the growing influence of US-domiciled companies listed on the Australian share market.

American Chris Hulls, the chief executive of GPS tracking app Life360, topped the rankings with realised pay of $47.7 million in the 2025 financial year. Hulls stepped down as chief executive in August 2025.

He was followed by American-born ResMed chief executive Mick Farrell on $35.2 million and News Corporation's Australian chief executive Robert Thomson on $33.6 million.

As US-based executives dominated the upper end of the pay table, the study found remuneration levels among Australia's largest companies remain comparatively restrained.

The median realised pay for ASX100 chief executives rose 4% in FY25 to $1.83 million - but remains below the record median of $1.95 million recorded in 2012.

"The focus of Australian investors and boards has meant that ASX CEO pay levels have generally avoided the runaway increases we've seen elsewhere," ACSI chief executive Louise Davidson said.

"It also means that where CEOs appear in the highest paid list, their companies will generally have delivered strong performance over the long term, although there can be notable exceptions."

The highest-paid Australian-based chief executive in the ASX200 was Sigma Healthcare chief executive Vikesh Ramsunder, who entered the top 20 for the first time following Sigma's merger with Chemist Warehouse.

Macquarie Group chief executive Shemara Wikramanayake came in fifth with $30.4 million.

Seven Australian company chiefs featured among the top 20 highest paid for a third consecutive year.

ACSI's research also found bonus outcomes remain resilient. The median ASX100 chief executive received 70.7% of their maximum bonus opportunity in FY25.

Aside from the pandemic-affected FY20 period, median bonus outcomes have remained between 60% and 77% of maximum levels for the past 11 years.

ACSI executive manager of stewardship Ed John said investors should remain alert to remuneration trends.

"Investors cannot become complacent, with clear evidence that CEO bonuses continue to be a 'given' in Australia's largest companies," he said.

"This year investors will need to remain vigilant to ensure that we do not see the inflation in CEO salaries or a pay breakout that we see in markets like the US."

As for golden parachutes, termination payments for ASX100 chiefs cost shareholders $18.6 million in the last financial year, driven by more and higher payments.

The increase in average payments from roughly $1.4 million to $2.2 million was largely due to FY25's single large payment of $5.88 million to former Rio Tinto chief executive Jakob Stausholm.

The report said falling battery costs are helping insulate the market from global energy shocks.

The 2025-26 GenCost Final Report found battery storage continues to deliver significant cost reductions, while demand for gas turbines driven by the rapid expansion of artificial intelligence data centres in the United States is pushing up the cost of gas-fired generation.

Australia's national electricity market generation prices have already eased to around $104 per megawatt-hour in 2025 from a peak of $189/MWh in 2022, with electricity futures indicating prices could decline further to between $80/MWh and $90/MWh by 2030.

CSIRO chief energy economist and GenCost project leader Paul Graham said battery storage was increasingly becoming the preferred source of flexible generation.

"As battery costs continue to fall and gas technology costs rise, batteries are increasingly becoming the preferred flexible generation technology in the near term," Graham said.

"However, GenCost modelling finds gas technologies will still play a limited but important role in helping firm the electricity system, contributing around 3-7% of generation by 2050."

The report projects solar photovoltaic and onshore wind will account for 93% of Australia's electricity generation by 2050 under a least cost net-zero pathway, supported by hydro, storage, transmission and flexile generation including gas and hydrogen.

It also found while some fossil fuel technologies, including new black coal generation could appear cost competitive in isolation, they would require more expensive emissions reductions elsewhere in the economy to meet Australia's climate targets.

Gramham said geopolitical tensions as well as the increased need for energy to support AI infrastructure were creating uncertainty for energy markets.

"Each year GenCost, with the help of stakeholders, seeks to understand how electricity technology markets are changing. The impacts of the Iran war and data centre demand for gas turbines are currently the strongest drivers of uncertainty," he said.

AEMO executive general manager of system design Nicola Falcon said the report continued to provide "trusted, independent insights that support planning for Australia's future electricity system."

This follows the release of the draft report in December last year, when CSIRO and AMEO similarly concluded renewables backed by storage remained Australia's cheapest source of new electricity generation. The final report retains that conclusion while incorporating stakeholder feedback, updated market data and new modelling tools to improve transparency.

EIC provides private debt to assist companies transitioning to a low carbon economy, while also ensuring energy security.

Nuveen said the partnership is a landmark commitment to finance the buildout of critical infrastructure that supports the clean energy economy and promotes energy security for the United States and abroad.

The investment focus will include renewable power generation, energy storage, industrial decarbonisation, energy efficiency solutions and circular economy investments.

The partnership will also invest in the onshoring of infrastructure supply chains to support domestic US manufacturing jobs and the build-out of artificial intelligence and the digital economy.

"The demand for new energy, power, and digital infrastructure has never been greater. The rapid expansion of artificial intelligence, the onshoring of manufacturing and industrial supply chains, and the broad electrification of the economy are collectively creating a generational need for new infrastructure investment," Nuveen Energy Infrastructure Credit global head Don Dimitrievich said.

"We believe private credit is uniquely positioned to play a leading role in financing that buildout while also achieving positive sustainable outcomes. We are thrilled to work with CalSTRS as a long-term partner to scale strategies that seek to deliver strong risk-adjusted financial performance while also investing in communities and businesses to make energy more readily accessible and clean for all stakeholders."

CalSTRS said the partnership aligns the long-term nature of sustainable infrastructure credit with its plan's core mandate of generating attractive risk-adjusted returns for California's more than one million public-school educators while also delivering positive sustainability results and reducing or avoiding emissions.

"This investment with Nuveen EIC aligns with our long-term outlook and mission to provide a secure retirement for our members," CalSTRS investment director Nick Abel said.

"We believe sustainable infrastructure credit requires specialists' expertise to originate, underwrite and structure bespoke capital solutions. Sustainable infrastructure credit also represents an important allocation for CalSTRS as we seek to generate strong risk-adjusted returns and contribute to a cleaner, more resilient, and affordable clean-energy economy."

The SME Industrial Decarbonisation Fund has been designed to help small-to-medium sized Australian manufacturers reduce their direct greenhouse gas emissions by switching from fossil fuel-powered processes to electric alternatives.

The merit-based fund operates on a first come, first serve basis, and are available to project sizes between $400,000 and $1 million, while projects with a co-investment amount less than $200,000 will be considered on a case-by-case basis, AMGC said.

The initiative will help to upgrade or replace equipment and processes, train workforce, attain updated certification or compliance and share successful deployment across the manufacturing industry through knowledge sharing activities.

Under the co-investment environment, applicants are responsible for the remaining 50%, or more, of eligible project expenditure, and they cannot use funding from other local and state government initiatives to cover the remaining percentage not covered by the fund.

Projects must also clearly demonstrate a pathway to achieving commercial viability and the ability to deliver a measurable reduction in emissions, AMGC said.

The fund will be open for applications until 31 December 2027, and it is expected to close on 31 March 2028.

The software giant said the rise was primarily driven by the expansion of its data centre infrastructure and pausing the use of renewable energy certificates.

Non-additional, unbundled renewable energy certificates (RECs) are tradeable credits purchased separately from physical electricity.

Microsoft said it ceased purchasing the certificates in a bid to refocus funds on more long-term, higher-impact investments across carbon reduction, carbon removal, and clean electricity procurement.

"While this decision increases our reported emissions in the near term, it enables us to increase the development of new carbon-free energy (CFE) rather than relying on certificates alone," Microsoft said.

"We believe this change will create more long-term sustainability benefits. Growth-related emissions pressure was expected. The more important signal is where that pressure is concentrated."

While Scope three emissions remains the largest share of Microsoft's footprint overall, Scope two emissions rose sharply from just 2% to 13% in the year. Scope two covers indirect emissions from purchased electricity, steam, or cooling whereas Scope three includes all other indirect value chain emissions, such as supply chain production.

"This development underscores the growing role energy systems play in shaping environmental outcomes and why advancing CFE remains critical to long-term progress," it said.

"While Scope three remains the largest share of our footprint overall, we continue working with suppliers to advance decarbonisation across our value chain."

Microsoft highlighted it has achieved its milestone of matching 100% of its annual electricity consumption with renewable energy in 2025.

"Matching our datacentres' electricity usage with CFE is an important tool for reducing the emissions associated with our operations," Microsoft said.

"As demand for AI and cloud services grows, expanding access to CFE while improving how that energy is used is critical to reducing overall impact."

The new role expands his responsibilities as the timberland investment manager looks to grow its global portfolio of forestry and nature-based assets.

Barbara, who joined the firm in September 2024, will immediately assume responsibility for leading Cambell Global's worldwide timberland investment activities, including investment origination, due diligence, transaction execution and divestments. He will continue to serve as head of Australia while joining the firm's executive team, investment committee and price forecast team.

Based in Sydney, Barbara brings more than two decades of experience in forestry and nature-based investing. Before joining Campbell Global, he was a founding employee of New Forests, where he held senior leadership positions including chief commercial officer and director of business development.

Through his career, he has led investment origination and execution across Australia, New Zealand, Asia, North America and Africa, focusing on timberland, land, carbon and other nature-based assets.

Cambell Global chief executive Angela Davis said Barbara's appointment reflected both his leadership and industry experience.

"We are delighted to recognize Michael's leadership and expertise with this well-deserved appointment," Davis said.

"His deep industry experience and commitment to sustainable investment will continue to advance our platform and capabilities globally."

The appointment comes as institutional investors continue to increase allocations to natural capital strategies, with timberland and carbon assets gaining prominence as long-term portfolio diversifiers and sources of sustainable returns.

Cambell Global said Barbara would oversee the firm's global acquisition strategy as it continues investing across international forestry markets.

🌿 Can carbon recycling turn industrial emissions into profitable products?

❓ Question:

Can captured carbon dioxide be transformed into valuable commercial products, and could this help heavy industries such as cement, steel and mining accelerate their path to net zero while creating new business opportunities?

✅ Answer:

According to Sophia Hamblin Wang, co-founder and chief operating officer of MCi Carbon, carbon dioxide should no longer be viewed as a waste product. Instead, it can become a feedstock for new industrial materials, creating a commercial incentive for companies to capture emissions rather than release them into the atmosphere.

MCi Carbon was founded in 2013 to commercialise a process known as mineral carbonation, which permanently locks CO₂ into mineral products that can be used across industries including cement, plasterboard, refractories, paper and construction materials. The company's vision emerged from research highlighting mineral carbonation as a viable long-term carbon storage solution, but at the time there were few examples of the technology being deployed at scale.

🌟 A major milestone was recently achieved with the opening of what MCi Carbon describes as the world's first fully integrated carbon refinery in Newcastle. The demonstration facility can permanently store approximately 2,500 tonnes of CO₂ each year while producing around 10,000 tonnes of low-carbon materials for industrial use.

🚩 One challenge highlighted in the discussion is the ongoing uncertainty around climate policy frameworks. While governments and corporations have broadly committed to net zero by 2050, many of the regulatory mechanisms needed to support large-scale decarbonisation are still evolving. Carbon markets, emissions trading schemes and standards continue to develop across different jurisdictions, creating uncertainty for climate technology companies seeking to scale globally.

🚩 Another challenge is convincing industrial companies to adopt new technologies at scale. Heavy industries have traditionally faced limited commercially viable options for reducing emissions, particularly in sectors such as steel, cement and chemicals where emissions are difficult to eliminate. Success depends not only on environmental performance, but also on economics, operational integration and customer demand for lower-carbon materials.

🌟 One of MCi Carbon's differentiators is that its business model does not rely solely on carbon credits or emissions trading schemes. The company has designed its technology to generate revenue through the sale of valuable products created from captured CO₂. In some cases, customers are interested purely in removing emissions from their operations, leading to what Sophia describes as "carbon removal as a service".

🌟 The technology is also designed as a "bolt-on" solution that can be installed alongside existing industrial facilities. By locating operations close to major emitters, MCi Carbon can take captured CO₂ and convert it directly into useful materials, lowering barriers to adoption for industrial customers.

⚠️ Looking ahead, Sophia believes the next 18 months could be a pivotal period for industrial decarbonisation technologies. As pressure grows for heavy industries to reduce emissions and more governments establish climate transition frameworks, demand for commercially viable carbon utilisation technologies is expected to increase significantly. The company is also exploring opportunities linked to sustainable finance, including green bonds and infrastructure-style investment models.

💡 Why it matters:

Heavy industries account for a significant share of global greenhouse gas emissions, yet they remain among the hardest sectors to decarbonise. Technologies that can transform captured carbon into commercially valuable products offer a potentially powerful alternative to treating emissions solely as a compliance or waste-management problem. If successful, carbon recycling could help industries reduce emissions, unlock new revenue streams and accelerate progress towards net zero while creating entirely new markets for low-carbon materials.

🎙️ Sources:

• Sophia Hamblin Wang, co-founder and chief operating officer, MCi Carbon

• Michelle Baltazar, host, The Greener Way podcast

⏱️ Timestamps:

00:00 - Introduction to carbon recycling and industrial decarbonisation

01:30 - Why MCi Carbon was founded

04:15 - Building a carbon refinery in Australia

07:10 - Global investors and strategic partners

10:15 - Europe and Japan expansion plans

11:45 - Regulatory uncertainty and net-zero frameworks

13:00 - Carbon removal as a service explained

14:10 - Opportunities in steel, cement and heavy industry

15:15 - Future growth, green bonds and scaling commercial plants

16:00 - Why the next 18 months will be critical

🌿 We record on Gadigal Land and pay our respects to the traditional custodians of country and elders past and present.

Cyan Ventures, a specialist sustainability firm, has launched the Green Fuels Accelerator (GFA), which will provide tailored regulatory, technical, commercial and finance advisory support to de-risk projects and unlock domestic low carbon fuel supply.

Under the GFA, Cyan Ventures has selected its first seven Australian LCLF projects to fast-track toward financial close and commercial production.

The seven selected projects span conversion technologies and integrated feedstock-to-fuel facilities across Queensland, New South Wales and Western Australia.

"The benefit of a thriving domestic sustainable aviation fuel (SAF) industry is clear. What's missing is the targeted support to get early-stage projects across the line - the financing structures, the offtake agreements and the regulatory guidance that turns potential into production," Cyan Ventures managing partner Fraser Thompson said.

This week, Brisbane Airport has made SAF accessible via Viva Energy Australia's refurbished storage tank. The completion of the refurbishment was also achieved through the ARENA funding.

ARENA chief executive Darren Miller said: "Australia has the potential to manufacture our own low carbon liquid fuels. We have abundant feedstocks, strong research capability and growing demand from sectors like aviation. What's needed now is the support to help promising projects navigate the final steps to commercial scale."

"The Green Fuels Accelerator is about closing that gap and providing the targeted support needed to move projects from concept to construction and build Australia's resilience to fuel shocks," Miller added.

While some of the projects selected are converting non-food biomass and waste streams into bio-oil others are building blending terminal and large-scale refinery to carry out the production.

Published in the Journal of Business Ethics, the paper by UTS associate professor Gordon Menzies and professor Isa Hafalir revisits the long-established principal-agent model, suggesting fixed salaries can outperform incentive contracts when employees have a genuine commitment to honesty.

The researchers argue excessive reliance on incentives may inadvertently weaken trust by signalling employers expect dishonest behaviour.

"For decades economic theory has often treated people as if they will only do the right thing in organisations when incentives force them to," Menzies said.

"This research is especially timely for debates about performance pay, executive incentives, professional standards, compliance culture and trust in institutions."

The study builds on Menzies' public lecture at the University of Oxford examining lessons from the global financial crisis and questioning whether traditional economic assumptions accurately reflect how people behave in organisations.

According to the researchers, the principal-agent model, widely used to justify executive bonus structures since the 1980s, assumes employees will not tell the truth unless incentivised to do so. Their revised model instead recognises many people value honesty alongside financial reward.

"In many business situations, people are neither perfectly self-interested nor perfectly trustworthy. Our model captures that more realistic middle ground," Menzies said,

"A key implication is that offering an incentive contract can itself send a signal of distrust. That can discourage honesty, reduce trustworthiness and create a downward spiral where even more incentives are needed."

The findings also help explain why fixed salaries remain prevalent across professions such as medicine, law and financial advice, where ethical judgement client trust is central to service delivery.

"Doctors, lawyers and other professionals are note just service providers responding to price signals. Their work depends on duties of loyalty, care and truthfulness," Menzies said.

"The persistence of salaried professional roles is not an accident. It reflects the very economic value and economic value and economic efficiency of trust, judgement and moral responsibility."

The transaction aligns with EQT's focus on investing behind the infrastructure underpinning global demand for artificial intelligence (AI) and supporting energy security, it said.

The firm plans to support Copia's management team in scaling the platform, advancing priority development projects, and expanding its integrated campuses strategy throughout the US.

Copia develops integrated energy campuses, with over 2.6 gigawatts (GW) of energy generation and storage assets in operation or under construction and is actively developing over 9GW of grid-connected data centres supported by Copia, as well as over 25GW of solar and storage and 7GW of natural gas generation assets.

EQT said the platform's integrated model provides firm, grid-connected power in markets where interconnection queues have become a key hurdle, while supporting ratepayer affordability.

The acquisition also expands EQT's portfolio of AI infrastructure in the US, including EdgeConneX, Zayo, Cypress Creek Energy and Scale.

EQT head of infrastructure Americas Alex Darden said the rapid adoption of AI is driving investment in infrastructure assets like data centres and energy, which is expected to reach into the trillions of dollars over the coming years.

"The rapid adoption of AI is transforming infrastructure demand, making energy an increasingly critical enabler of digital infrastructure. Copia has built a differentiated platform at the intersection of these two themes, and we believe it is exceptionally well positioned for long-term growth," Darden said.

"We look forward to partnering with the management team to accelerate development, scale the platform, and help build the infrastructure that will support the next generation of AI."

Copia Power chief executive Ray Henger added: "We are excited to partner with EQT as we enter Copia's next phase of growth."

"Since our founding, we have focused on solving one of the most important challenges facing the US power market: bringing generation, transmission and large-scale load together in a way that accelerates delivery for customers and utilities.

"EQT's deep infrastructure experience and long-term perspective bring the ideal partner as we continue to scale our platform and develop the energy infrastructure needed to support AI and electrification."

The transaction is subject to customary conditions and approvals and is expected to close by the end of 2026.

The appointments, announced by Climate Change and Energy Minister Chris Bowen, take effect from July 18. O'Gorman succeeds outgoing chair Justin Punch, who has led the agency since July 2020.

The board refresh also includes the appointment of Lara Olsen and Kobad Bhavnagri as directors, while existing board members Ruby Heard and Dean Travers have been reappointed for further terms. Long-serving director Stephen McIntosh will step down.

Acting chief executive Zoe von Batenburg said the appointments come at a pivotal time for Australia's cleaner energy transition.

"ARENA plays a critical role in accelerating the development and adoption of renewable energy technologies, and strong leadership at the board level is essential to us delivering on this mission," Batenburg said.

She said O'Gorman's experience across clean emergency investment and public policy, together with O'Leary's financial and sector expertise, would strengthen the agency's governance.

"We're delighted to have a female chair and deputy chair leading the board for the first time in ARENA's history," she said.

Von Batenburg also welcomed the addition of Olsen and Bhavnagri, saying they would bring "additional expertise and fresh perspectives to support the agency's work in accelerating Australia's transition to net zero emissions."

O'Gorman joins with experience spanning sustainable investment, climate policy and clean technology, having held positions with the World Bank, the Clean Energy Finance Corporation and the Australian Government. She also co-founded the McKell Institute Queensland.

O'Leary is a senior manager director at Macquire Asset Management and previously led its global agriculture and natural assets business, overseeing decarbonisation initiatives and nature-based investment strategies.

Meanwhile, Bhavnagri joins from BloombergNEF, where he spent 16 years analysing the global energy transition, while Olsen brings executive experience from Tesla, South East Water and Boston Consulting Group.

Vin Batenburg also acknowledge the contribution of Punch and McIntosh.

"I would like to acknowledge the significant contribution of outgoing chair Justin Punch and director Stephen McIntosh, who have helped guide the agency through a period of growth and impact and have been instrumental in shaping AREAN's strategic direction," she said.

QRIF II secured a total of £587 million ($843m) in investor commitments, beating its £500 million ($718m) fundraising target.

QRIF II invests in infrastructure that supports the UK's Clean Power 2030 targets, a roadmap set by the government to have 95% of the energy system powered by clean sources, as well as Ireland's goal of shifting 80% of its electricity from renewable energy by that year.

QRIF II is Quinbrook's fifth managed fund and builds on the strategy of its inaugural Renewables Impact Fund ("QRIF"), which closed in 2023.

Quinbrook managing director and UK regional lead Keith Gains said as the UK and Ireland continue to make meaningful progress towards their energy transition goals, investor demand for infrastructure assets that deliver both resilience and decarbonisation continues to grow.

"With QRIF II, we have expanded our strategy into areas where we see strong long-term demand and supportive policy frameworks, including grid stability infrastructure in Ireland and the decarbonisation of commercial transport in the UK. These investments are underpinned by long-term contracts and essential-service characteristics, which we believe are critical to delivering stable investor returns while supporting economy-wide decarbonisation," he said.

Some of the fund's key investments are the Mallard Pass Solar Project, a 373 megawatts direct current (MWdc) solar development in England's East Midlands and Project Norton, a 65MW solar and 41MW battery storage facility in Stockton-on-Tees. Construction on both projects is expected to commence later this year.

To date, Quinbrook has invested $2.3 billion (£1.2bn) of equity capital in projects and businesses operating in the UK and Ireland.

In June, the firm appointed Tim Horneman as Australia region leader, formalising responsibility for local investment activities and operations as it expands across key energy transition markets.

This marks the first time climate transition uncertainty will influence how much banks can borrow against corporate bonds pledged in monetary policy operations.

The new 'climate factors', which took effect on June 15, are designed to protect the ECB's balance sheet from potential losses arising from the transition to a low carbon economy by reducing the vale assigned to corporate bonds issued by companies deemed more exposed to climate related risks.

The changes complement the ECB's existing collateral risk controls, including the valuation haircuts, by incorporating forward-looking climate risks that may not be captured in historical market data.

"Climate factors complement existing risk control measures by protecting the ECB's balance sheet against unexpected climate transition shocks," ECB economists Dirk Broeders and Daniel Gybass said.

The central bank said climate change presents unprecedented financial risks, with shifts in climate policy, technology and consumer behaviour capable of rapidly affecting companies' profitability and asset values.

Under the revised framework, bonds issued by companies with higher greenhouse gas emissions, weaker decarbonisation strategies or less comprehensive climate disclosures will receive larger valuation reductions. Longer-dated securities will also attract higher adjustments because they are considered more vulnerable to future transition risks.

The ECB said the framework uses a two-step methodology, assessing each issuer's exposure through a combination of sector-level transition risks, company-specific emissions and disclosure data, and the remaining maturity of the bond before converting those assessments into a climate adjustment factor.

For example, a corporate bond valued at €100 with a standard 10% haircut and a climate factor of 0.987 would allow a bank to borrow €88, instead of the €90 under the previous framework.

The central bank said the immediate impact on banks is expected to be limited because borrowing levels remain low and corporate bonds account for a relatively small share of collateral pledged in refinancing operations.

The ECB said sectors including utilities, materials and transportation are expected to receive the largest climate-related adjustments due to their greater exposure to transition risks, while software and consumer services are generally expected to attract smaller reductions.

The Governing Council will review the climate factors regularly to reflect improvements in climate data, regulatory developments and advances in risk assessment methodologies.

The new Tasmania Natural Asset Trust (TNAT) is an afforestation and natural capital platform to be managed by Gresham House Asset Management (GHAM), with investments from the CEFC, Aviva Investors and Gresham House.

The cornerstone asset for the platform is a 21,745 hectare property in northern Tasmania Rushy Lagoon, a site designated under the Convention on Wetlands of International Importance (the Ramsar Convention).

CEFC said this will create local jobs and inject significant capital into the regional economy while generating high integrity Australian Carbon Credits Units (ACCUs) and protecting an important Ramsar wetland.

CEFC head of natural capital Heechung Sung said: "This critical investment converts degraded farmland into a production model that will boost the Australia's forestry industry, create local jobs, support sustainable timber production, introduce sustainable grazing and protect the unique environment."

The project is expected to create more than 190 new jobs over the life of the project and produce approximately five million tonnes of timber and 3.2 million ACCUs.

"It is a demonstration of the power of institutional capital to drive economic development for regional communities while also supporting decarbonisation and positive environmental outcomes," Sung said.

The project will combine commercial softwood plantations on low productive land with large-scale conservation and ecological restoration and sustainable grazing. The Radiata Pine trees produced by the project are expected to be processed locally by Tasmanian-based sawmills and supplied into the Australian market.

This is expected to provide a major boost to Tasmania's forestry industry and alleviate some of Tasmania's wood supply pressures and help divert harvesting away from native forests, CEFC said.

"We think it will be a great example of how our investment activity can deliver long-term investment outcomes, whilst having a positive and real-world benefit on the surrounding habitat and within local communities," Aviva Investors director of natural capital at and co-portfolio manager of the Carbon Removal Fund Greta Talbot-Jones said.

"Working with the CEFC and Gresham House, alongside local land and development partners in Tasmania, gives us clear, direct reporting lines which are vitally important in helping to deliver on our financial and sustainability ambitions to create positive change and long-term value."

According to Clean Energy Investor Group's (CEIG) Clean Energy Investor Outlook report for 2026, support among surveyed investors has slipped from 69% to 58% in the last year.

More than three quarters (77%) of Australia's largest clean energy investors believe the investment landscape has deteriorated over the past 12 months and highlighted a "significant gap" between Australia's renewable energy ambitions and investor confidence, with only 8% believing Australia is on track to reach 82% renewables by 2030 under current settings.

Meanwhile, transmission buildout delays are now the biggest challenge facing renewable energy investment and the highest policy priority for investors over the next three years - overtaking planning approvals.

Investors are yet to see meaningful improvements at project level, CEIG said, as grid-side constraints, including connection delays, curtailment and congestion continue to dominate the delivery bottleneck.

In state rankings, which is part of the report, NSW remains the clear leader for renewable energy investment, followed by Queensland, Western Australia and Victoria.

Commenting, CEIG chief executive Richie Merzian said investors are looking for clear signals from Australian governments on faster transmission, coal closures, streamlined approvals, and competitive tax settings, reiterating the significance of recent CGT changes.

"Australia has been a top clean energy investment destination, but that confidence in our country is waning and trending down. Over three quarters of our clean energy investors say the Australian landscape has worsened in the last year. This needs to be addressed with action," Merzian said.

"Investors are losing patience with a system that isn't delivering at pace, and creating additional barriers, like the proposed Capital Gains Tax on existing international clean energy investments.

"It's no wonder less than one in ten investors see Australia meeting its 2030 clean energy target."

He also noted data centres can drive the next wave of investment, as an overwhelming 92% of investors believe growing demand will have a positive impact on unlocking clean energy investment.

"However, data centres must not be used as an excuse to delay coal power closures, which investors want to see retired on time," he added.

"Investors are ready - the handbrake is the system. Without coordinated action to address project delivery bottlenecks and restore certainty, Australia risks losing available clean energy capital to competing markets. And that's bad news for household electricity bills."

Under the Capacity Investment Scheme (CIS), a new pilot will support First Nations communities to co-own renewable energy projects and to share in the income they generate.

The CIS aims to accelerate investment in renewable energy generation, such as wind and solar facilities, as well as clean, dispatchable capacity, including battery storage.

"This initiative aims to deliver stronger, long-term economic and social outcomes for Traditional Owners and First Nations communities," DCCEEW said.

Since the first CIS tender, the government has encouraged developers to work with First Nations communities through equity ownership, revenue-sharing arrangements and energy offtake agreements.

"Many successful projects have done this, however, feedback showed that more targeted action was needed so more communities can participate in these clean energy projects," DCCEEW said.

"In response, a new First Nations Set Aside pilot has been introduced in CIS Tenders nine and 10. The pilot will be reviewed, and improvements may be considered for future tender rounds."

To qualify, DCCEEW said proponents must commit with First Nations partners to one of the following: at least 5% equity; revenue sharing equal to 5% equity; and a mix of equity and revenue sharing equal to 5% equity.

Stakeholders including government agencies, industry, finance, peak bodies and First Nations organisations have welcomed the pilot as a positive step, DCCEEW said.

The commission said the revised standards will reduce administrative burdens for European Union (EU) businesses while maintaining high-quality disclosures.

The changes are part of EU's Omnibus I simplification package, which streamlines sustainability reporting and reduces the number of companies in scope of the Corporate Sustainability Reporting Directive (CSRD).

The package aims to simplify EU rules and boost competitiveness and unlock additional investment capacity.

"The revised ESRS are shorter and clearer, add new flexibilities, and streamline key processes," the European Commission said.

"They reduce the number of mandatory datapoints by over 60% and the total number of datapoints by over 70%. These changes are expected to reduce reporting costs by more than 30% per company, in line with the commission's target of reducing burdens associated with reporting requirements by 25%."

The commission had taken feedback from stakeholders in May and said the targeted adjustments will help further ease the reporting burden without undermining the CSRD's policy objectives.

For smaller companies outside the scope of the CSRD, the commission said the voluntary reporting standard provides a single, proportionate reference framework for sustainability reporting companies.

"It will make it easier for companies not covered by the CSRD to respond to specific requests for sustainability information from large financial institutions and companies," it said.

"It also establishes a value chain cap, meaning that companies subject to the CSRD cannot require companies in their value chains to provide more information than what is covered by the voluntary standard."

The act revising the standard will now be transmitted to the European Parliament and the Council of the EU for scrutiny.

The commission said the measures will apply once the scrutiny period of two months, which can be prolonged by a further two months, is over.

ESRS cover environmental, social, and governance issues, including climate change, biodiversity and human rights. They provide information for investors and other stakeholders to understand the sustainability-related risks to which companies are exposed and their impacts on people and the environment.

Scientific Beta was established in 2012 by the EDHEC-Risk Institute, an academic institution in the field of fundamental and applied research for the investment industry. Scientific Beta is known for its research capabilities and its suite of smart beta, climate, and enhanced cap-weight indices.

The firm was acquired by SGX in 2020 and has approximately 40 full-time employees based primarily in Nice as well as London, Singapore and Sydney.

"This acquisition will accelerate our strategy to deliver scalable, research-driven, and cost-effective index solutions to institutional investors globally," ISS STOXX president and chief executive Gary Retelny said.

"It strengthens our ability to meet the growing demand for systematic, rules-based strategies that are undergirded by world-class research, for institutional investors across the globe."

STOXX general manager Axel Lomholt noted asset owners are increasingly seeking strategies that combine academic rigor with real-world implementation at scale.

"Bringing Scientific Beta into STOXX strengthens our ability to meet this demand, offering clients seamless access to advanced factor research, robust portfolio construction, and scalable index implementation within a single, integrated platform," Lomholt said.

"The addition of Scientific Beta and its highly talented team underscore our commitment to delivering differentiated indexing solutions, grounded in industry leading research, that enhance our clients' investment processes."

SGX Group said the divestment positions Scientific Beta for its next phase of growth and under new ownership it will be well-equipped to advance its research-driven capabilities and expand global reach.

SGX Group head of global financial markets Ng Yao Loong said: "We are pleased to transition Scientific Beta to a new owner well-positioned to scale its capabilities and distribution."

Financial Standard is owned by ISS Market Intelligence, which is part of ISS STOXX. 

Lemvig Biogas is Denmark's largest thermophilic biogas facility, and the facility processes manure, organic waste and residual industrial products to generate renewable energy for the local community in Lemvig.

The acquisition follows an expanded capital commitment from APG Asset Management, acting on behalf of Dutch pension fund ABP, which will support BioticNRG's growth ambitions across both the UK and Europe.

The initial commitment supported the successful portfolio acquisitions of 10 anaerobic digestion sites, six green waste composting facilities, and adjacent infrastructure since 2024.

Palisade Real Assets and APG have also expanded the BioticNRG mandate to include European bioenergy assets, creating a dedicated investment strategy focused on opportunities across key European markets.

"We are excited to expand the APG mandate in the UK and into Europe with our first European acquisition. This transaction combines our operational expertise and long-term institutional capital with the outstanding track record of Lemvig Biogas management. and represents a significant step in the continued growth of the BioticNRG fund," Palisade Real Assets chief executive Stephen Burns said.

Lemvig Biogas chair Niels Bjerre added: "We are pleased to have found a buyer with solid experience in operating biogas plants and with a long-term perspective. It has been important for us to ensure a solution where the plant continues to operate with consideration for the local community and is further developed with the aim of accepting even more livestock manure from the municipality."

APG senior portfolio manager infrastructure Iulia Grosu said investing in biogas and biomethane continues to offer promising solutions to mitigate climate change, reduce waste, and provide renewable energy solutions.

"The BioticNRG collaboration with the Palisade Real Assets team continues to fit ABP's commitment to the energy transition, while securing attractive returns for its participants," Grosu said.

"The UK build out of BioticNRG combined with the subsequent first steps into Europe with the acquisition of Lemvig Biogas are fully aligned with our long-term vision for sustainability. We look forward to the further growth of the BioticNRG platform."

The company lifted its interim dividend to 3.8 cents per share, fully franked, taking the annualised payout to 7.6 cents per share, a 5.6% increase on the prior year. Based on its closing share price on July 7, the annualised dividend yield stands at 5.7%, or 8.1% including franking credits.

The increase marks the eleventh consecutive annual dividend rise since Future Generation Australia listed in 2014. The company said its profits reserve of 41.8 cents per share provides around 5.5 years of dividend coverage.

Future Generation Australia chair Phillip Lowe said the result reflected the strength of the company's investment strategy and unique business model.

"Future Generation Australia's long term investment portfolio performance has enabled the board to increase the fully franked interim dividend to 3.8 cents per share," Lowe said.

"The increased dividend demonstrates the strength and sustainability of the company's model, delivering value for shareholders while supporting social impact partners working to improve outcomes for Australia's most vulnerable children."

Since inception, the portfolio has delivered annualised returns of 9.1%, outperforming the S&P/ASX All Ordinaries Accumulation Index by 0.9%, per annum, while doing so with less volatility than the broader market.

Future Generation chief investment officer Lee Hopperton said the fund's manager selection process and portfolio construction helped deliver strong long-term returns while managing risk.

"We are pleased to have outperformed the market since inception. Our diversified portfolio of leading active fund managers, selected by the experienced Investment Committee, is designed to reduce concentration risk and volatility while generating attractive risk-adjusted returns," Hopperton said.

The portfolio is managed by 16 active fund managers and has significantly lower exposure to Australia's largest listed companies than the benchmark, with the top 10 stocks accounting for just 16.6% of the portfolio compared with 45.3% of the index.

Future Generation also maintained its philanthropic focus, with fund managers continuing to waive management and performance fees, enabling the company to donate 1% of net assets annually to Australian charities without reducing shareholder returns.

The company said it has now donated $100 million to charitable organisations since inception, supporting programs focused on vulnerable children, youth mental health and improving economic outcomes for women.

🤖 Can good AI governance help companies become long-term winners?

❓ Question:

How are Australian company boards approaching artificial intelligence, and can strong AI governance help companies create long-term value while managing emerging risks?

✅ Answer:

Artificial intelligence is rapidly becoming an investment issue rather than simply a technology issue. According to Sue Lyn Stubbs, associate director in sustainable investing at Fidelity International, investors are increasingly assessing not only whether companies are adopting AI, but how effectively boards are governing its implementation.

To better understand the state of AI governance in Australia, Fidelity engaged with 31 ASX-listed companies across sectors including financials, healthcare, technology and real estate. The research focused on five areas: strategy and value creation, board oversight and skills, risk and controls, governance and ethical AI, and workforce impacts.

One of the key findings was that many companies remain in the early stages of AI adoption. Fidelity's assessment framework, based on Microsoft's AI maturity model, required an additional category "Stage Zero" to classify companies that were not yet actively implementing AI. Most organisations currently sit between experimentation, pilot programs and early operational use.

🚩 One of the key governance red flags was a disconnect between executives and boards. In some cases, CEOs described ambitious AI strategies and extensive use cases, while boards appeared significantly more conservative in their understanding of AI opportunities. This mismatch raised questions about strategic alignment and whether AI investments were being directed effectively across the organisation.

🚩 Another concern was the absence of clearly defined "no-go" areas for AI. While many boards acknowledged potential risks, few could clearly articulate where AI should not be used, particularly in sensitive areas such as workforce surveillance or customer decision-making that could create biased outcomes. As AI becomes more embedded across organisations, investors are likely to expect stronger guardrails and clearer accountability.

🌟 Despite these challenges, the research highlighted several examples of emerging best practice. Leading companies are investing in AI talent, building internal capability, expanding workforce training and, in some cases, incorporating AI-related measures into employee incentive programs. Some companies are also engaging directly with regulators and policymakers on the future development of AI governance frameworks.

From an investment perspective, Stubbs believes strong AI governance could become an important indicator of long-term success. Drawing comparisons with previous technology disruptions, she argues that companies that can adapt their business models, embrace change and govern emerging technologies effectively may be better positioned to create sustainable shareholder value.

⚠️ The report also challenges the common assumption that "human in the loop" oversight is enough to manage AI risks. While human review remains important, there is a growing risk that employees become overly reliant on AI-generated outputs. Boards may eventually need additional layers of monitoring and control to manage potential errors, compliance issues and unintended consequences. Meanwhile, the growing use of unauthorised AI tools by employees, sometimes referred to as "shadow AI", presents another governance challenge for organisations seeking to protect intellectual property and manage operational risk.

Ultimately, the research suggests that investors should view AI governance as more than a compliance exercise. A board's ability to oversee AI effectively may provide valuable insights into whether a company can adapt, compete and thrive in a rapidly changing business environment.

💡 Why it matters:

Artificial intelligence is reshaping industries, workforces and business models at an unprecedented pace. While much of the public discussion focuses on productivity gains and innovation, investors are increasingly concerned with governance, accountability and risk management. Companies that can successfully balance AI opportunity with strong oversight may be better positioned to create long-term value, while those that fail to establish appropriate guardrails risk operational, reputational and strategic setbacks.

🎙️ Sources:

• Sue Lyn Stubbs, associate director, sustainable investing, Fidelity International

• Michelle Baltazar, executive director of media, FS Sustainability

⏱️ Timestamps:

00:00 - Why AI governance matters for investors

02:05 - Researching AI adoption across 31 ASX companies

04:59 - Understanding AI maturity and Stage Zero

07:33 - Red flags and governance gaps

11:39 - Examples of emerging best practice

15:25 - Linking AI governance to long-term value creation

17:51 - Why "human in the loop" may not be enough

19:50 - The risks of shadow AI

21:25 - What boards should focus on next

Link: Insights from Fidelity International's 2025 Australian AGM season AI governance survey

🌿 We record on Gadigal Land and we pay our respects to the traditional custodians of country and elders past and present.

Under the framework, companies will be classified in three tiers: tier one would be approved for investment, tier two would be approved with enhanced monitoring and tier three would not be approved for investment.

"The tier classification reflects an assessment of ESG-related financial risk and is not a judgement on the overall sustainability or ethical standing of a company," Warakirri said.

"Only tier one and tier two companies are eligible for inclusion in the approved list. Companies assessed as having severe, persistent and inadequately managed ESG risks, which may pose unacceptable long-term investment risk, are excluded."

For the funds, Northcape ESG data model utilises raw data sourced from reputable providers and incorporates approximately 100 indicators across governance, climate, human rights, human capital and customer considerations.

In assessing companies for investment, Northcape considers analyst and third-party research, judgement and insights.

"ESG ratings ultimately reflect analyst judgement of the materiality of ESG risks in the context of the Northcape investment process," Warakirri said.

For the Warakirri Ethical Australian Equities Fund, Northcape applies a negative screen which excludes investment in companies with revenue greater than 5% in the following: manufacture of alcoholic beverages; provision of gambling products and/or services; production of sugary drinks, confectionery and fast-food chains; and extraction of thermal coal and/or coal seam gas.

A revenue threshold of 0% is applied to companies involved in: production of tobacco, manufacture of nicotine alternatives and tobacco-based products; and manufacture of controversial weapons, firearms, and nuclear weapons, as well as associated delivery systems.

The Global SWF GSR scoreboard measures best practices among state-owned investors around the world.

Future Fund Management Agency chief executive Raphael Arndt said: "This recognition reflects our ongoing disciplined and joined-up approach to long-term investing, and our increased focus on responsible investment."

"As we mark our 20-year anniversary in 2026, it highlights our sustained focus on building a resilient, diversified portfolio that delivers returns for the benefit of future generations of Australians," he added.

La Caisse, Ontario Teachers' and BCI in North America; Norges Bank Investment Management; Nigeria Sovereign Investment Authority; Temasek in Singapore; and NZ Super were among other investors who also achieved a perfect score.

"We are very satisfied with the increasing response and accountability of sovereign investors, which recognize the importance of adopting best practices and embracing change and evolution," Global SWF founder and managing director Diego López said.

"This year, the nine perfect scorers from around the world demonstrated robustness and hardiness, in the context of geopolitical uncertainty and market volatility."

Global SWF noted the best results are found in institutions from Oceania, followed by Europe and North America. Asian funds just pass the test, while Middle Eastern, African and Latin American investors have averages below 50%.

It also found two-thirds of the assessed funds are already adopting and investing in artificial intelligence; and half of those, reported their first interaction with AI during the past 12 months.

While the average GSR score of all 200 funds slightly increased to 60% and sustainability and resilience scores improved, governance including transparency stayed flat.

Out of the 25 different elements on which funds are measured, three were modified to account for the increasing importance of relative financial performance, carbon emission statements, and adoption as well as investment in AI.

Providing a letter to the United Nations Environment Programme's (UNEP) International Methane Emissions Observatory, which combine signatories of local super funds including Aware Super, Colonial First State, HESTA, Rest, and other asset managers, investors are urging metallurgical coal and steel companies to improve methane measurement and verifications, while advancing practical abatement opportunities.

They believe participating in UNEP's Steel Methane Programme can help formulate a framework for stronger methane data, greater comparability, and collaboration on emissions abatement.

The initiative aims to improve methane transparency and provides a platform for constructive collaboration, data sharing where appropriate, and the development of practical mitigation pathways, the letter said.

In addition to the participation of the program, investors are advising metallurgical coal producers to continue enhancing their understanding of methane emissions.

"We expect companies to develop and disclose practical methane reduction plans. These plans should reflect the company's approach to immediately tackling the financial liabilities associated with rising methane-related risks, as well as considerations of technical feasibility and workforce safety impacts," the letter said.

Meanwhile, steel makers and purchasers should dictate procurement frameworks that promote transparency and collaboration for abatement opportunities.

"Disclosures should clarify the difference between measured data and estimates and explain how upstream methane is incorporated into transition planning," it said.

Additionally, investors highlighted the addressing of methane emissions can provide "strong" benefits to both the environment and economy, hence, advocating the related entities to elevate the scrutiny on such area as a priority.

"As investors, we remain committed to ongoing dialogue and collaboration, and we will continue to follow progress through disclosures, governance practices, and demonstrated improvements in data quality and mitigation activity," it said.

The ISSB has been developing the proposed practice statement to support companies provide nature-related disclosures to meet investor information needs building on the requirements in IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information. The statement will be subject to the same due process as a standard.

ISSB finalised its decision-making on the content of the proposals in the last week of June.

ISSB vice-chair Sue Lloyd said the ISSB drew on the Taskforce on Nature-related Financial Disclosures (TNFD) framework to develop the proposals.

The practice statement will be used together with IFRS S1 and IFRS S2 climate-related disclosures and will be a tool companies can choose to use when providing nature-related information to investors.

"The ISSB sees a real opportunity to address fragmentation in the disclosure landscape through the proposed Practice Statement by drawing on the TNFD framework and building on IFRS S1 and IFRS S2," Lloyd said.

"Proposing a Practice Statement enables us to do this without disrupting implementation and adoption of ISSB Standards around the world."

Lloyd added by developing these proposals in the form of a Practice Statement, the ISSB is leaving the door open for a Standard in the future.

"We look forward to hearing your feedback when we consult on these proposals later this year," she said.

The ISSB during its April board meeting in Beijing agreed to propose requirements for nature-related disclosures in the form of an IFRS practice statement.

ISSB chair Emmanuel Faber in April said: "Providing material nature-related disclosures is not optional; IFRS S1 already requires that. A Practice Statement will guide companies on how to provide such disclosures."

Late last year, it had said it will move into a standard-setting process on nature-related risks and opportunities, drawing on the disclosure recommendations, metrics and guidance of the TNFD.

The completion of the refurbishment was achieved through the Australian Renewable Energy Agency's (ARENA) funding, which is stationed at Viva Energy's Pinkenba Terminal, within a 10-minute travel distance to the airport.

The project will supply SAF to aircraft at Brisbane Airport and trial a 'book and claim' system, allowing airlines and corporate customers to purchase, track and account for the emissions reductions associated with the SAF supplied to the airport, ARENA said.

ARENA chief executive Darren Miller said the move marks a key milestone in building Australia's low emission aviation industry, while highlighting progress in building the supply chains needed to decarbonise aviation.

"Aviation is one of the hardest sectors to decarbonise and sustainable aviation fuel will play a critical role in reducing emissions using today's aircraft and infrastructure," Miller said.

"This project shows how we can start supplying SAF through existing fuel systems, while building the foundations for a domestic industry in Australia."

Alongside the broadened access by the Brisbane Airport, ARENA is also supporting a pipeline of projects to accelerate the development of domestic SAF.

This includes $3.15 million under the Sustainable Aviation Fuel Funding Initiative for Wildfire Energy to pilot the integration of its MIHG technology with methanol synthesis to produce methanol and undertake a feasibility study to assess a Queensland facility that would convert waste into SAF.

To date, ARENA provided $36.7 million in funding towards six projects as part of its Sustainable Aviation Fuel Funding Initiative. The organisation is also administering the Future Made in Australia Innovation Fund, including its low-carbon liquid fuels funding stream with $250 million in funding available.

With the funding, Zenobē will acquire a fleet of up to 148 BETs to deliver low emissions groceries. Zenobē plans to lease out the BETs to Woolworths with the full fleet rollout completed over the course of 2027.

CEFC said the transaction backs what will be the largest fleet rollout of electric trucks in Australia, the Foton T5 BETs will be leased to Woolworths for last mile delivery across New South Wales and Victoria, with additional vehicles in Queensland, Western Australia and South Australia.

CEFC head of infrastructure Julia Hinwood said this investment reflects the commercial viability of BETs and enables Zenobē to set competitive rentals to incentivise customers to lease battery trucks.

She added by increasing the uptake of BETs, CEFC is helping develop the market to bring them closer to price parity with their non-electric counterparts.

"Backing deployments in hard-to-abate sectors like freight helps normalise new technologies and bring in wider private investment," she said.

"With fuel price volatility and supply risks increasingly material for freight operators, early large-scale deployments are critical to generating the real-world performance data and operating benchmarks needed to underpin a secondary market for electric heavy vehicles."

Of the 12,003 trucks and heavy vans sold in Australia in 2026 to date, only 0.9% were electric.

Under the model, Zenobē will retains ownership of the trucks, allowing Woolworths to deploy BETs during the lease term without taking on end-of-life risk. CEFC said the model represents a 'one-stop-shop' for customers who take up the lease rental, inclusive of vehicle maintenance, warranties and upgrades.

Zenobē country director for Australia and New Zealand Gareth Ridge noted the project is evidence that electrification is a commercial opportunity.

"Woolworths is already rolling out hundreds of electric trucks at scale, that's almost unheard of in Australia's freight sector and proof that with the right business model and competitive pricing from Zenobē, electrification stacks up right now," Ridge said.

"Together with Woolworths and the CEFC, we're proving that large-scale zero-emissions logistics is no longer a pilot, it's commercially viable and operationally proven."

The investment forms part of a broader CEFC focus on the decarbonisation of Australian transport, alongside commitments across passenger vehicles, fleet electrification, and charging infrastructure.

The number of Australian millionaires increased by 1.6% over the year, minting 25,089 people to high-net-worth status. This lifted the total millionaire population to more than 1.6 million.

Australia also ranked among the world's wealthiest nations on a per-capita basis, with average wealth per adult reaching US$616,306.

Only Hong Kong (US$648,267), the US (US$696,277), Luxembourg (US$ 654,732) and Switzerland (US$910,382) lead Australia, recording the top wealth levels on a per-adult basis.

The report found Australia is home to some 121,000 adults with wealth between US$5 million and US$100 million, placing it alongside mainland China and the US as one of the fastest-growing markets in this segment.

Australia also ranked highly on median wealth measures, placing third globally behind Luxembourg and Belgium. Nearly 70% of Australian adults hold assets exceeding US$100,000, second only to Luxembourg.

While residential property remains a major store of wealth, Australians also hold a relatively high proportion of liquid assets via equities, managed funds and superannuation investments, supporting broader participation in wealth creation across the population.

The report also measured the distribution of wealth. Australia comparatively boasts an even distribution of wealth with a Gini coefficient of at 0.53. This is significantly lower than the United Arab Emirates and Russia, which recorded the highest levels of wealth inequality at 0.82.

UBS Global Wealth Management Australia head of investments Andrew McAuley said once again, Australia punches above its weight in terms of wealth and equality and "should pride itself on the equality of its wealth distribution".

"Australia has seen average wealth per adult grow by 19% so far this decade in real terms when measured in AUD. Almost 8% of adults have assets of US$1 million or more, helped by property prices and superannuation balances," he said.

"Our Gini coefficient, a statistical measure of wealth inequality and indirectly quality of life, is extremely low, ranking fifth best out of the 56 nations analysed."

Overall, total personal wealth around the world grew by 10.8% during 2025.

The transaction also incorporates Infinite Care's recent acquisition of Autumn Age Care, bringing the combined organisation to 46 residential aged care homes with about 5300 beds and 7500 staff across New South Wales, Queensland, Victoria and South Australia.

The enlarged group significantly expands Anglicare Sydney's national footprint as demand for aged care services continue to grow following the sectors regulatory reforms.

Anglicare chief executive officer Simon Miller said the acquisition strengthens the organisations' ability to meet increasing demand while preserving each provider's commitment to residential care.

"Together with Infinite Care and Autumn Aged Care, we are bringing together three organisations with a shared commitment to dignity, belonging and whole-of-person care," Miller said.

"Infinite Care and Autumn Aged Care are both high-quality, resident-focused providers with very capable teams. Bringing our organisations together creates the opportunity for a powerful platform to build on their strengths and deliver even greater care and choice to older Australians."

Anglicare said residents would continue to receive care from their existing teams, with no disruptions to day-to-day services. Infinite Care and Autumn Aged Care will also continue operating under their current brands for the immediate future.

Anglicare Syndey chief executive of residential care Laurie Boxwell said the focus would now shift to integrating the business and sharing best practice across the expanded organisation.

"Our focus now is on building something together, where we can combine best practice across our organisations to deliver life-enriching care for residents and greater opportunities for our teams," Boxwell said.

The growing group also has plans to expand capacity through development opportunities across its portfolio, bringing additional aged care beds to market.

Infinite Care chief executive Luke Greive said joining Anglicare Syndey would strengthen the providers ability to deliver holistic care.

"At Infinite Care, we believe aged care is about dignity, belonging and creating places our residents are proud to call home," Grieve said.

"Joining with Anglicare Sydney strengthens our ability to deliver whole-of-person care, supporting residents clinically, emotionally and spiritually."

The bank had put out an ambitious target for its itself to dedicate 35% of its financing towards climate on an average in FY21-25 to support green, resilient and inclusive development.

In 2023 it announced a further target of 45% to climate-related projects from July 2024 to June 2025.

"The World Bank Group is pushing to do more to battle climate change and do it faster," it had said.

However, as it further extended the CCAP at the end of June, it retired the targeting.

US secretary of the treasury Scott Bessent noted earlier in the year that climate finance targets impede market efficiency, distorts incentives, and detracts the World Bank from its core mission of reducing poverty and increasing economic growth.

"We welcome the coming expiration of the CCAP, and upon its long-overdue expiration, expect the Bank to immediately shift its myopic focus on climate and financing volumes," he said.

He added the World Bank should not shape and select projects to chase arbitrary financing targets that do little to lift people out of poverty.

"The Bank should turn its attention to whether its investments and the countries they support are resilient to a multitude of shocks, rather than to meeting nonsensical arbitrary targets," he said.

The United States is the largest single shareholder in the World Bank Group, holding roughly 15% to 16% of the voting power.

The World Bank said: "We have done significant work in answering client demand and needs. Further progress on outcomes will continue to be driven by client ambition and enabled by the work of the knowledge bank, consistent with countries' international commitments."

It added it will continue to track and report on its two scorecard indicators on net greenhouse gas (GHG) emissions and beneficiaries with enhanced resilience to climate risks. It will also continue its work to strengthen its outcome measurement methodology and keep engaging with other Multilateral Development Banks (MDBs).

"We will continue to report to the board on progress, including on climate co-benefits, and to contribute to our related joint MDB efforts," it added.

"We will explore and discuss ways to better structure our engagement on adaptation, nature and pollution."

In the absence of specific legislation in Australia, however, organisations that exaggerate or misrepresent such capabilities (a practice known as 'AI-washing' or 'cyber-washing'), risk breaching obligations under the Australian Consumer Law (ACL) and other regulatory regimes, and could face significant financial penalties.

There is currently no legislation in Australia that specifically regulates AI, meaning that businesses will continue to be subject to a combination of existing legislative regimes in respect of their use, and marketing, of AI. While the Federal Government (Government) has taken steps toward a new regulatory environment for AI, Australia is currently operating on a voluntary framework. In effect, this creates statutory ambiguity as to the requirements of AI and sets Australia apart from international enforceable regimes, such as Canada's Artificial Intelligence and Data Act and the European Union's Artificial Intelligence Act.

To bridge the gap between the proliferation of AI and a lack of legislation, in November 2019 the Government released Australia's AI Ethics Principles, a voluntary framework intended to prompt organisations to use AI-enabled systems in a safe, secure and reliable way by incorporating values such as "fairness", "privacy protection and security", and "transparency and explainability". In September 2024, the Government published both the Voluntary AI Safety Standard (Voluntary Standard) and the Safe and responsible AI in Australia: Proposals paper for introducing mandatory guardrails for AI in high-risk settings (Proposals Paper).

The Voluntary Standard contains 10 voluntary guardrails, including in respect of testing, transparency and accountability, for organisations throughout the AI supply chain. The Proposals Paper (which noted that voluntary guardrails are insufficient to prevent harms occurring from the use of AI) proposed 10 mandatory guardrails applicable to "high-risk AI", which largely replicate the Voluntary Standard but require organisations to give a certification of compliance.

In an interim report released in August 2025, however, the Productivity Commission has called for a pause on work on the mandatory guardrails, warning that new regulations could stifle the development of AI and hinder its benefits.

AI-washing and other laws and regulations

Despite Australia's lack of AI-specific laws, regulators have cautioned that in addition to raising risks of misinformation, unintended discrimination, and data security and privacy breaches, the use of AI is already regulated by technology-neutral consumer protection laws, directors' duties laws, and financial services and credit licensee obligations, such as the obligation to provide licensed services "efficiently, honestly and fairly".

Businesses should be mindful that these laws and obligations will typically apply to AI deployers (that is, individuals or organisations that use AI systems within products or services), rather than AI developers, who are able to contractually exclude liability incurred using their AI products and services.

Consumer protection laws

The ACL contains technology-neutral prohibitions on engaging in misleading or deceptive conduct or conduct that is likely to mislead or deceive in trade or commerce and making false or misleading representations about goods or services.

Under the ACL, making false or misleading representations about a business's technological capabilities carries significant penalties including fines of up to A$50 million, three times the value obtained from a breach, or 30% of a company's adjusted turnover during the breach period.

To take the use of AI-powered chatbots as an example, a business could breach the ACL if an AI-powered chatbot produced 'hallucinations' (that is, outputs which contain fabricated information presented as fact) which contained false or misleading information about consumers' rights or the products or services of a business. This could occur if, for instance, a business uses a chatbot to handle warranty claims, and the chatbot mistakenly claims that a customer's warranty has expired or does not acknowledge the existence of statutory guarantees.

Further, an AI-powered chatbot could collect client or employee data by saving users' inputs or 'scraping' information from the systems in which they are deployed. Without proper restrictions, this information could be reproduced in outputs to other users.

Financial services and credit licensee obligations

In October 2024, the Australian Securities and Investments Commission (ASIC) announced the publication of Report 798: Beware the gap: Governance arrangements in the face of AI innovation (REP 798), which reviewed how 23 Australian financial services (AFS) licensee and credit licensees use and plan to use AI. In general, REP 798 found that there were gaps in licensees' governance arrangements for managing some AI risks.

As a result, REP 798 encourages AFS and credit licensees to take measures including:

•   developing specific policies to address the risk of privacy, security and data quality when using AI, particularly considering the rapid adoption of AI and overall shift towards more complex and opaque AI techniques which can pose new challenges for risk management

•   proactively assessing novel AI-specific risks like algorithm bias, an issue which has previously resulted in an insurance company receiving significant penalties when its pricing algorithm failed to account for promised discounts.

Trade marks

Businesses that promote AI-related goods or services should also be mindful not to engage in AI-washing in their branding. If a business attempts to register a trade mark which involves AI-related words or graphics that are exaggerated beyond the business's AI capabilities, that trade mark could be rejected on the basis that it is:

•   contrary to law under section 42 of the Trade Marks Act 1995 (Trade Marks Act), because it breaches the prohibitions on misleading or deceptive conduct under the ACL, or

•   likely to deceive or cause confusion under section 43 of the Trade Marks Act, because it overstates the involvement of AI in the applicant's goods or services offering.

Advertising and marketing

While Australian regulators have signalled their concerns about AI-washing, they have not yet released guidance on advertising or marketing claims about AI. However, in December 2023, the Australian Competition and Consumer Commission (ACCC) published guidance on making environmental claims intended to mitigate 'greenwashing' (that is, misleading claims about a business's environmental sustainability), another practice regulated through the lens of misleading or deceptive conduct laws.

Based on this guidance, when making claims about AI, businesses should, among other things:

•   make accurate and truthful claims, which genuinely reflect the level of AI use in a business's products, services or operations

•   not hide or omit important information (e.g. that manual or pre-programmed processes run in the background of 'AI' services)

•   use clear and easy-to-understand language in advertising and marketing materials, including by avoiding overly technical language which could result in consumers being confused about the role of AI in a business's products, services or operations.

The use of AI in legal practice in Australia

To date, the focus on AI in Australian courts has predominantly been in relation to the use of generative AI in legal practice and as a litigation tool. While there are now practice notes and guidelines concerning AI in place in several jurisdictions, there is by no means a uniform approach to its use across the jurisdictions (bar the fact that all are taking a cautious approach). In the Supreme Court of New South Wales for example, a practice note is in place which is prescriptive as to when generative AI may be used.

In respect of solicitor practice, the Law Society of New South Wales, the Legal Practice Board of Western Australia and the Victorian Legal Services Board and Commissioner recently released a joint statement setting out common principles to assist lawyers, who are subject to the Legal Profession Uniform Law, in their use of AI. The guidance is based on the Australian Solicitors' Conduct Rules and encourages lawyers to, among other things, learn the capabilities and limitations of the AI and to properly disclose to clients about their use of AI, including how the use of AI is reflected in costs.

Consistent with the experience overseas, there is a growing spate of decisions in Australia where solicitors have been reprimanded for the inappropriate use of AI, usually resulting in fabricated or false cases or authorities being cited. A further trend that has been noticed by the courts is the use of AI by litigants in person, particularly unrepresented litigants. In Queensland, guidelines on the responsible use of generative AI have been published specifically for non-lawyers.

In relation to case law examples, while there have been some cases involving the operation of pricing algorithms here, we are yet to see a substantive Australian proceeding with AI at the heart of the subject matter of the litigation. That said, the experience overseas in this space is likely to be indicative of the types of claims we can expect to be presented in Australia in due course. Some recent examples of AI-washing-related litigation in the United States include:

•   the US Securities and Exchange Commission (SEC) charging certain investment advisers for allegedly exaggerating in their marketing the extent to which AI is used

•   the SEC charging a restaurant technology company which failed to disclose that its AI product (that purportedly removed the need for humans to take orders) in fact required human intervention

•   an ongoing securities class action against an engineering company, catalysed by the publication of a short-sell report exposing allegedly misleading statements in relation to its AI capabilities.

Conclusion

Regulators and courts in Australia and overseas are increasingly concerned with the risks to consumers presented by the rapid development of generative AI. Businesses should take particular care to ensure that they clearly understand the operation of any AI programs that are being integrated into their services, to ensure that any statements made to consumers are accurate and truthful. fs

HESTA's Sustainable Growth option returned members 2.75% over the last year. In comparison, its High Growth and Conservative options returned 11.5% and 6.4% respectively.

In a statement to Financial Standard HESTA noted member aligned exclusions as partly responsible for 'disappointing' financial-year-to-date returns in the Sustainable Growth option.

In addition to HESTA's fund-wide approach to responsible investment, the Sustainable Growth investment option applies a broad range of exclusions including in companies invested in fossil fuels, tobacco, uranium, controversial weapons, nuclear weapons, weapons, for-profit detention, red flags identified by its data provider related to human and labour rights breaches, red flags identified by our data provider related to environmental breaches, poor ESG policies and systems, uncertified palm oil, gambling, live animal exports and poor sovereign ESG ratings.

HESTA also listed concentration in active strategies, including lower exposure to major US technology stocks and individual asset performance as some of the reasons for the low performance.

The over $100 billion super fund noted it has been continuing to refine the strategy of the option and through the year has increased diversification to help manage risk and improve resilience across market conditions.

"Our investment decisions are focused on the long-term financial interests of members," HESTA spokesperson said.

"We regularly monitor the performance of all our investment options and consider a range of factors, including performance against investment objectives, peers and the Your Future Your Super performance test."

IGCC's latest survey State of Net Zero Investment 2026 speaking to Australian institutional investors noted the  Your Future Your Super performance test was one reason hindering institutional capital allocation at scale to climate-aligned opportunities.

Treasury is currently consulting reforms to address benchmarking-hugging incentives encouraged by the superannuation performance test.

Treasury acknowledged the industry's concerns super funds are constraining their investment universe and staving off allocating to assets outside the mainstream to ultimately pass the test or reduce underperformance.

While HESTA did not confirm the fund would be closing, Financial Standard understands that if it did consider closing the fund, it typically wouldn't require the sale of underlying assets, which would continue to be held as part of the fund's broader portfolio.

SSG is responsible for MIM's sustainability aspirations, including oversight on sustainability governance, sustainability analytics, product development and client engagement.

Kate Temby left her roles of head of SSG, as well as chair of MIM's internal sustainable investment council, wrapping up her three-and-a-half years tenure at the company.

Temby joined the company following the acquisition of Affirmative Investment Management by MIM, where she was the head of global client engagement and partner for over five years. She was also stationed at Goldman Sachs, JBWere, and PwC earlier in her career.

Announcing her departure on LinkedIn, Temby said: "After an exciting chapter, I am finishing up at MetLife Investment Management. I am appreciative of the many client relationships, especially those in Australia and New Zealand," she said.

"I am also grateful for the opportunity to help build Affirmative Investment Management and sustainability capabilities at MIM.

"To my team and colleagues - thank you for your collaboration, trust, and the fun we have had building the business and our careers. It has been a privilege."

MIM has confirmed PineBridge global head of corporate responsibility Kate Faraday, who has oversight of SSG, will continue to lead the team.

Faraday is based in New York and has been with PineBridge for nearly 20 years.

The program can grant funding of up to $15,000 for eligible not-for-profit and community organisations.

Since its inception in 2002, the program has provided more than $7 million in funding to close to 1000 community-led projects. This year, funding will focus on initiatives that improve financial wellbeing, as well as programs that support better housing access for those facing homelessness.

Further, associations related to the restoration and conservation of the natural environment are considered, with those helping to deliver medium- to long-term benefits and sustainability to local communities also checking the box for this year's criteria.

ANZ head of agribusiness Mark Bennett said rural communities will need funding to procure sustainable growth.

"Community groups understand what their region needs most. Through this longstanding partnership with FRRR, we're able to support these organisations directly - ensuring they can deliver meaningful, place-based outcomes, and help their communities to adapt, grow and thrive," Bennett said.

FRRR head of granting Jill Karena added: "We're proud to partner with ANZ to support grassroots groups to address the priority issues that will enhance the sustainability and liveability of their communities.

"By backing them, we're helping to build strong, vibrant futures. We look forward to seeing what projects come forward this year."

Meanwhile, Bogan Gate Recreation Reserve board member Jame Buchanan explained its Bushfire Landscaping Project, which received funding last year, demonstrates why funding is vital.

"Seeds of Renewal funding has been a significant boost to natural hazard resilience in our small, remote, rural community," Buchanan said

"Without a large population base to fund projects locally, this support has enabled the Recreation Reserve to demonstrate practical, household-level bushfire risk reduction strategies, while also enhancing the beauty of local properties."

Applications are now open and close on 30 July 2026.

Can responsible investors justify defence exposure?

Question:

Can investors responsibly invest in defence companies while managing ESG risks, and where should they draw the line?

Answer:

Defence investing has become increasingly relevant as global conflict and government spending rise, but it remains complex for ESG-focused investors. According to Jess Cairns, head of responsible investment at Alphinity, the key is not blanket avoidance but having a clear, practical framework that balances responsible investing with investment opportunity.

Most investors already apply strict exclusions to controversial weapons (such as nuclear or banned weapons), often at a zero-revenue threshold. However, beyond that, there is significant variation across the industry, especially when it comes to conventional weapons and indirect exposure.

A major challenge is "dual-use" companies. Many industrial and technology firms produce components that can be used in both civilian and military applications, making it difficult to clearly classify exposure. Cairns notes that even small, generic components can end up in weapons systems, making traditional dual-use vs single-use distinctions unreliable in practice.

Instead, Alphinity's approach is to:

• Apply a hard exclusion to companies directly manufacturing weapons.

• Allow some indirect exposure (e.g. components or services), but with strict limits.

• Use enhanced due diligence to assess how products are used, who they are sold to, and whether there are risks linked to conflict zones or human rights issues.

This due diligence includes analysing end markets, government contracts, sanctions compliance, and any controversies linked to misuse. For example, a company with a small portion of revenue tied indirectly to defence (around 5% in one case discussed) may still be investable if risks are well understood and managed.

However, the hardest decisions arise when companies are linked to active conflicts. Even minimal revenue exposure can create significant ethical and reputational concerns. In some cases, companies have limited control over how their products are ultimately used, forcing investors to weigh financial materiality against potential human rights implications.

Ultimately, responsible defence investing is about clarity and consistency, not perfection. Investors can participate in the sector, but only if they set clear boundaries, apply rigorous analysis, and remain accountable to stakeholders.

Why it matters:

Defence is no longer a niche or easily excluded sector, it's becoming a meaningful driver of returns in global markets. At the same time, it carries significant ESG risks, particularly around human rights and conflict exposure. Investors who fail to define their approach may either miss opportunities or take unintended risks. A clear framework helps balance performance with responsibility and builds trust with clients and stakeholders.

Sources:

• Jess Cairns, head of responsible investment, Alphinity

• Michelle Baltazar, executive director of media, FS Sustainability

Timestamps:

00:00 - Why defence investing is back on the agenda

01:19 - How investors began reassessing the sector

02:45 - Mapping exposure and company disclosures

04:50 - Why dual-use classifications break down

07:14 - Building a practical investment framework

11:44 - Balancing risk and return

14:34 - Real-world ethical dilemmas and case studies

18:30 - Key insights from the responsible investment report

We record on Gadigal Land and we pay our respects to the traditional custodians of country and elders past and present.

https://www.fssustainability.com.au/

While the current risk mapping for the vigilance plan included the treatment of its Scope 1 and 2 emissions, the court noted it excludes Scope 3 emissions which are referred to in the sustainability reporting.

The court said the law empowered the judge to order TotalEnergies to comply with its obligations.

The judge said the law establishes judicial oversight of the inclusion in the plan of "reasonable, concrete and consistent vigilance measures" tailored to the risk assessment and of their effective implementation.

However, it does not allow the judge to act in the company's stead by requiring it to put in place specific and detailed measures, the court said.

"Consequently, it is not for the court to set a target for TotalEnergies SE to prevent or mitigate the adverse climate impacts resulting from its activities, given that the temperature limit of 1. 5°C not to be exceeded," it said.

TotalEnergies was satisfied that the Paris Judicial Court did not withhold it which from developing or undertaking new oil and gas projects or to require it to reduce its oil and gas production.

TotalEnergies took note of the Court's request to include customers' emissions (Scope 3) in its vigilance plan and to update it accordingly.

"The company will therefore supplement its vigilance plan, notably by drawing on its sustainability report (CSRD), in which it describes the actions implemented to support its customers in reducing their emissions, notably through the development of electricity and biofuels production and sales activities," it said.

TotalEnergies aims to lower its carbon intensity progressively and targets a 25% reduction in the carbon intensity of the energy products sold by 2030 compared to 2015.

A report from climate communications charity Comms Declare identified more than 260 publicly documented programs and sponsorships funded by coal, oil and gas companies or industry bodies targeting children from early learning through to career pathways.

The report, From Cradle to Career: Fossil Fuel Industry Presence in Australian Childhood Settings, is the first national study to examine the scale of fossil fuel industry engagement with children and young people in Australia.

Researchers found one industry-backed education provider, Teacher Earth Science Education Programme Ltd (TESEP), estimated its activities could reach more than two million Australian students over five years. They also identified more than $54 million in disclosed funding across six programs, noting the true figure was likely substantially higher.

Comms Declare founder Belinda Noble said the finding highlighted concerns over corporate influence in children's education.

"Big oil and gas companies are helping drive climate change yet simultaneously funding educational programs that shape how young Australians understand energy, resources and climate issues," Noble said.

"Oil and gas companies sponsoring climate education is like a tobacco company giving cancer advice" she added.

The report also points to governance and transparency gaps around sponsorship arrangements, educational materials and industry partnerships, arguing there is limited public visibility over how such programs operate.

Comms Declare is calling for a Senate inquiring into fossil fuel industry engagement with children, alongside a national ban on fossil fuel advertising and sponsorships.

Nobel said previous regulatory action has demonstrated the need for broader reform.

"Six years ago an ASIC investigation forced banking programs, like Dollarmites, out of schools. Now big polluters are using the same loopholes to reach children, proving we need to find difference ways to fund children's programs once and for all," she said.

Polling commissioned by Comms Declare found 87% of parents and grandparents believe government, rather than fossil fuel companies should fund educational programs, while 58% support a ban on fossil fuel advertising. The report also notes the Australian Capital Territory prohibited fossil fuel sponsorships in public schools earlier this year.

The batteries aim to increase charging speeds up to 40% and battery density by 20% faster than conventional batteries, while remaining compatible with existing production lines.

ARENA will provide up to $45 million to support Sicona Battery Technologies (Sicona) for manufacturing of its advanced silicon-carbon battery anode material SiCx®.

Delivered under the Battery Breakthrough Initiative (BBI) funding program, the project involves the construction and operation of a commercial-scale demonstration facility.

ARENA chief executive Darren Miller said the project supports the development of next-generation battery technologies and strengthens Australia's role in the global battery supply chain.

"This project supports the development of domestic capability in advanced battery materials, reducing reliance on imported components and strengthening Australia's position in the global battery supply chain," Miller said.

Sicona chief executive Christiaan Jordaan added: "It shows Australia can do more than export critical minerals. We can manufacture advanced materials, create skilled jobs, and compete in the high-value battery supply chains that will power the global energy transition."

Miller noted improving battery performance will help to further accelerate the uptake of electric vehicles and lowering emissions.

"Sicona's technology has the potential to deliver faster charging, longer driving range and lower-cost batteries," Miller said.

"The technology has undergone independent testing and is already being evaluated by global battery and electric vehicle manufacturers, highlighting its strong commercial potential."

Jordaan said battery-powered industries need higher performance at lower cost and the technology is designed to deliver faster charging, greater energy density and a scalable pathway into existing lithium-ion battery supply chains.

"The Wollongong facility will allow us to validate our process at commercial scale, deliver SiCx® to customers, and accelerate our path to market," he said.

IEA Global EV Outlook 2026 found average battery prices declined by 8% in 2025, supported by continued improvements in manufacturing efficiency, advances and shifts in battery chemistries and technology, and intensifying global market competition.

While China accounts for over 80% of the global total battery manufacturing capacity, the European Union and the United States account for 6-7% each.

Via its Regnan Credit Impact Trust and Pendal Sustainable Australian Fixed Interest Fund, the investment is backing the transition to fund renewables, transport and climate resilience initiatives.

Pendal believes the bond is consistent with recent government action to respond to climate change as well as engage in environmental recoveries.

"We've seen quite a few green-labelled bonds that are simply doing business as usual," Pendal said.

"For governments, this is a particular risk, with green bonds made up of already-completed projects that they were going to work on anyway, such as public transport or other infrastructure projects.

"We invested in this bond because half the proceeds will go towards existing commitments and half will go towards new commitments.

"In our view, this is quite reasonable and is better than some other green bonds from governments."

Pendal added that the list of projects financed by the bond are crucial for the transition to a low-carbon economy, which include the modernising of the electricity grid and development of new transmission infrastructure through concessional financing.

This bond also funds projects from community batteries and electric vehicle charging infrastructure to loans for energy-saving home upgrades, Pendal said.

As electricity generation is the biggest source of emissions in Australia, upgrading the grid to allow greater renewable energy connectivity will be essential in reducing emissions, it added.

The announcement follows the investment of the same strategies into ANZ's sustainable bond and MTR Corporation's inaugural green bond last month to support social and low-carbon transport projects in Australia.

The letter was sent to the Attorney-General and brings together investors like Australian Ethical, Colonial First State, Future Group, IFM Investors, and more to call on the government to ensure the reform is both "meaningful and pragmatic".

The group is advising the government to align with key international standards, such as the United Nations' guiding principles on business and human rights and the Organisation for Economic Co-operation and Development's guidelines for multinational enterprises on responsible business conduct.

They are also requesting to prioritise the mandate to undertake risk-based due diligence, which would "level the playing field" and promote an effective, proportionate, and outcome-focused approach to addressing modern slavery - reflecting what many Australian businesses are already doing.

"Many Australian businesses and investors have already taken action to identify and address modern slavery in supply chains to support their reporting under the Act. However, uptake remains uneven - reforming the Act could address this," the letter states.

"With an estimated 50 million people in modern slavery globally, action is urgent. This letter is calling on the government to prioritise aligning the Act with international principles and the introduction of a risk based due diligence approach for modern slavery for companies reporting under the Act."

Being part of the initiative, Future Group head of sustainable investments Jackie Radisich said the better focus on refining the Act will provide better clarity for investors.

"This kind of collective advocacy is one of the key levers we use to call for stronger legislative conditions that drive greater action on modern slavery in global supply chains and improve investors' ability to assess and act on exposure in their portfolios," Radisich said.

The additional funding with enable the QCMF to invest across the critical minerals value chain, from exploration and extraction through to downstream processing, refining advanced manufacturing and recycling, as Queensland seeks to cement its position as a globally competitive supplier.

Since its launch, the fund has committed more than $155 million across nine investments spanning copper, rare earths, vanadium, silica, silver-indium, high-purity alumina and industrial processing projects. Capital has been deployed through a mix of royalty, debt and equity structures.

QCMF fund manager Joshuah Risson said the fund increase reflects the growing strategic importance of Queensland's critical minerals industry amid rising global demand.

"Queensland is increasingly recognised as a globally competitive destination for critical minerals investment, underpinned by world class resource endowments, established mining expertise, growing downstream processing capability and access to international markets," Risson said.

"With global demand only increasing, the opportunity now is to accelerate the development of high-quality projects and ensure they can access the capital required to progress through key milestones."

Risson said the fund's flexible investment mandate allows it to support projects and commodities that can be overlooked by traditional sources of finance, particularly during the early stages of development.

"Many projects require capital for works like drilling programs, feasibility studies, permitting and early-stage development work that can materially improve project quality, reduce risk and enhance bankability," he said.

"Our experience has shown that targeted investment at these stages can accelerate development pathways, validate investment propositions and help crowd-in substantial follow-on capital from strategic investors, lenders and institutional capital providers."

Managed by QIC on behalf of the Queensland government, the QCMF invests through equity, debt and hybrid structures in commercially viable projects that deliver strategic economic benefits to the stare while supporting the development of an integrated end-to-end critical minerals supply chain.

The MCP Special Opportunities Fund is a diversified set of long and short positions across 15 commodities, including grains, oilseeds and vegetable oils.

The fund aims to capitalise on climate-driven dislocations across global commodity markets as an intensifying El Niño threatens to drive a renewed wave of inflation into 2027.

Target investors include insurers, pensions and endowments seeking both diversification and protection against climate-linked inflation shocks. It will open to subscriptions in mid-July via a Cayman structure.

Australians Les Finemore and Alistair Fullerton co-founded MCP in August 2025.

Finemore is the firm's chief investment officer while Fullerton is the chief operating officer.

Finemore was most recently a portfolio manager at Farrer Capital. He started his career as a physical trader at Gavilon before moving to Merricks Capital as an analyst and trader.

Fullerton worked across institutional banking and global markets, spanning FX, derivatives and equities, including positions at CBA and Macquarie Group. He is also an adviser to the Australian government's agricultural departments and industry bodies.

"The El Niño-driven supply crisis threatens a renewed wave of global food inflation into 2027, squeezing real incomes, lifting import bills, and straining the economies and balance sheets least able to absorb it," said Finemore.

"The fund will give institutions a vehicle to hedge precisely that risk - a way to transfer weather and El Niño-driven food and commodity exposure to capital equipped to carry it.

"We believe global commodity markets are seriously underestimating the risk of potential food inflation that could arrive in 2027. We are moving quickly because the thesis is already materialising in real time."

He points to India experiencing below-average rainfall thanks to the failed monsoon, which delivers roughly 70% of the country's annual rainfall.

"According to India's Meteorological Department, nationwide rainfall is running approximately 46% below the long-term average, as of June 22, with deficits exceeding 55% across central growing regions and near-term forecasts pointing to further deterioration - a pattern consistent with severe El Niño episodes. The same dry signal is spreading across Asia, while an intensifying heatwave grips Europe this week," he said.

The fund's target markets range from South African maize, Malaysian palm oil to Australian and Argentine wheat, Chinese and Singaporean rubber, among others traded across futures, options and swaps.

"Strategies include cross-commodity relative-value trades, long and short baskets, and term-structure positioning, all constructed to isolate weather-driven imbalances while managing directional and correlation risk," Finemore said, adding he expects widening dispersion across commodities, regions and forward curves, creating both winners and losers.

"For farmers, that is a double squeeze of higher costs and threatened output, and it sets up an unusually bullish backdrop for a broad set of commodities," he said.

"No two El Niños are the same and it takes a nuanced portfolio approach. Different crops, regions and points on each forward curve will respond very differently, which is precisely the dispersion the fund is designed to capture."

Future Group said it will also allocate capital to Aberdeen's global sustainable infrastructure strategy.

The partnership will focus on investing in essential infrastructure supporting the global energy transition through low-carbon infrastructure, expanding social and affordable assets such as housing and healthcare, and enabling more sustainable, connected communities through cleaner transport and resilient urban infrastructure.

Aberdeen's global sustainable infrastructure strategy focuses on greenfield concession and Public-Private Partnership (PPP) style investments. Spanning across Australia, New Zealand, the Americas and Europe, the strategy targets critical infrastructure projects that support public services, enhance social mobility and advance decarbonisation.

"Creating a sustainable and equitable world is central to our mission of building a future worth retiring into," Future Group deputy chief investment officer of private markets David Allen said.

"Aberdeen's deep expertise and strong track record in real assets and concession infrastructure align closely with our investment philosophy and sustainability objectives."

Aberdeen Investments managing partner of concession infrastructure Ameer Amin said the asset manager is pleased to partner with Future Group to help meet both their investment objectives and sustainability ambitions.

"For institutional investors seeking long-dated, inflation-linked cashflows, exposure to essential public assets and diversification away from traditional markets, concession infrastructure presents a compelling opportunity," Amin said.

"Over the past 25 years, we have invested in approximately 140 concession infrastructure projects worldwide on behalf of our clients, supporting essential public services ranging from transportation to the energy transition."

Future Group recently invested an undisclosed sum in I Squared Capital's Energy Transition Infrastructure Fund (ETIF) to fast-track its energy transition effort, while seeking exclusive opportunities outside the Australian market.

ETIF supports climate change mitigation by investing in infrastructure businesses and assets key to the energy transition globally, providing local institutional investors exposure to parts of the energy transition where policy settings and technology adoption differences create opportunities not currently available in the Australian market, it said.

In the role, Turner will lead and further strengthen Koda Capital's responsible and impact investing capability while working closely with advisers and clients to deliver high-quality, values-aligned investment solutions across portfolios.

Prior to joining Koda Capital, Turner worked at the First Sentier Group for close to seven years, most recently as the global head of responsible investment and a board member in Australia.

She has also served as a board member of the Responsible Investment Association Australia (RIAA) for the past three years, along with holding the position of the board chair for the last year and a half.

Koda Capital said Turner brings deep expertise in responsible investment, ESG integration and impact-led portfolio construction.

"She has also built a strong reputation for helping investors align capital with long-term sustainability outcomes, while maintaining a disciplined focus on performance and risk," it said.

Koda Capital added the appointment reflects its ongoing commitment to responsible and impact investing.

"As client interest in thoughtful, transparent and measurable outcomes continues to grow, we are investing in specialist expertise to further strengthen our capability in this area," Koda Capital said.

Asterion Industrial Partners is a European infrastructure investment manager headquartered in Madrid with around US$10 billion in assets under management. Most of the latest equity commitment will be provided by Asterion giving it around 20% stake in Southern Water.

This follows £900 million ($1.7bn) of equity committed by Macquarie during 2025, taking the total investments by MAM-managed funds into Southern Water to more than £2.8 billion ($5.3bn) since its acquisition in 2021.

"We are pleased to welcome Asterion Industrial Partners as a new minority shareholder, reflecting growing confidence in Southern Water's management team, its progress and its future plans," Macquarie Asset Management senior managing director Martin Bradley said.

"While there is more to do, the focus remains on continued delivery. This capital supports the sector's largest growth programme relative to its size, with the company doubling the investment per household in the region for the benefit of its customers and the environment."

Asterion Industrial Partners chief executive Jesús Olmos said the investment will provide primary capital to help fund Southern Water's significant capex programme focused on strengthening and modernising essential water infrastructure.

"This transaction marks Asterion's entry into a new sector in one of our core geographies and is fully aligned with our strategy of backing essential infrastructure with long-term capital and industrial expertise," Olmos said.

"We see a strong opportunity to support Southern Water's operational improvement, while contributing to the long-term resilience of critical infrastructure in the UK."

Macquarie said the equity invested to date has supported an operational turnaround that has accelerated through the first year of the new regulatory period to March 2026, with £1.1 billion ($2.1bn) deployed over the year as the company began delivering its 2025-30 programme.

Southern Water pleaded guilty to sewage disposal which polluted rivers and coastal waters in southern England and was handed a record fine of £90 million ($172m) in 2021.

Morningstar noted Southern Water was among five firms in the UK which were not allowed to hike bills by as much as they had requested, following a decision by the UK Competition & Markets Authority.

That decision came after the UK water regulator Ofwat in November blocked bonus payments to the bosses of several firms, including both Southern Water and Thames Water, based on performance and pollution issues.

Macquarie said Southern Water continues to make progress against its operational turnaround, delivering improvements across a number of measures including water supply interruptions, leakage and external sewer flooding, alongside a record level of capital investment in its network.

Concerned by the actions of CS Energy as the operator of Callide C - a 50/50 joint venture with Sev.en Global Investments (Sev.en GI) through its subsidiary IG Power, Sev.en GI has commenced legal proceedings against CS Energy and its wholly owned subsidiary Callide Energy.

IG Power claimed over 1700 days of generation capacity has been lost in the last five years from the explosion of the C4 generator, the collapse of the C3 cooling towers and the explosion of the C3 boiler between the two generation units at Callide C.

The claim seeks to hold CS Energy and Callide Energy accountable, and the legal proceedings follow an "extended period" of dialogue between the related parties.

Within the joint venture structure, operational control and responsibility for the operation and maintenance of the Callide C Power Station rest with CS Energy, the family office said.

"... during which Sev.en GI and IG Power have pursued alternatives to litigation. Regrettably, these efforts have been unsuccessful," Sev.en GI said.

Sev.en GI said it has been a key supporter of the rebuilding efforts since the initial incident in 2021 and has subsequently provided financial backing before ultimately acquiring 50% stake in the power station in May 2025.

Commenting, Sev.en GI's country manager Mark Sykes said the legal action was not a decision the firm has taken lightly.

"Sev.en Global Investments has been a long-term investor in Australian energy infrastructure and we have commenced these proceedings only after an extended period of engagement and careful consideration," he said.

In response, CS Energy said it will be defending against the claims.

"CS Energy has been aware for a number of years of potential claims by Sev.en for alleged losses relating to historical events since 2021 at Callide C Power Station," the statement read.

"CS Energy will defend the legal action brought by Sev.en Global Investments in relation to any such claims.

"CS Energy is committed to the safe, reliable and compliant operation of Callide C in the best interests of Queenslanders and the Crisafulli Government's Energy Roadmap."

Established by the Queensland government in 1997, CS Energy has operations across central Queensland, the Western Downs and southeast Queensland, with an energy portfolio of more than 3600 megawatts spanning thermal power stations, renewable energy, firming and storage.

Once completed, the 10 reactors are capable to provide electricity to power close to 10 million American households.

Issued via the Energy Dominance Financing (EDF), the $25 billion American Nuclear Supply Chain Loans will finance the long-lead equipment necessary for 10 Westinghouse Electric Company's AP1000 nuclear reactors. Westinghouse is a nuclear services business jointly owned by Brookfield Asset Management and its institutional partners (51%) and Cameco Corporation (49%).

They are the only licensed large-scale advanced commercial reactors operating in the US currently, DOE explained, stating that long-lead items are complex components that require the longest time for manufacturing and delivery.

In detail, the financing will support up to five loans, each supporting two reactors at a project site, and five eligible utilities ad energy companies will partner with Westinghouse to procure the long-lead items at a fixed price.

Both Westinghouse and the partner are required to fully commit their project equity, US$500 million ($723m) each (US$1 billion total per project), upfront prior to accessing DOE loan funds, DOE said.

Westinghouse has already signed letters of intent with seven potential partners.

The project marks a major step toward advancing US President Donald Trump's executive order by supporting the objective of having 10 new large nuclear reactors with complete designs under construction by 2030.

"Just over one year ago, President Trump directed the Energy Department and its agency partners to unleash the next American nuclear renaissance," US Energy secretary Chris Wright said.

"To accomplish that mission, these conditional loans will play an important role in reviving the supply chain needed for America to once again build large-scale commercial reactors.

"They will also help accelerate the timeline of building those large-scale reactors by up to three years, lowering construction costs and ensuring the United States is able to deliver on President Trump's bold and ambitious energy addition agenda."

Meanwhile, Brookfield Asset Management chief executive Connor Teskey added: "Westinghouse continues to be at the forefront of major public and private partnerships that will materially accelerate the build-out of large-scale nuclear power generation, help meet growing energy demand, and support energy security in the US."

"The loan facilities help advance President Trump's executive order and serves as a catalyst for nuclear, providing the certainty needed to enhance the domestic nuclear supply chain and accelerate construction of nuclear projects that will deliver reliable baseload power around the country for decades to come."