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 ASIX 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."

The claimants, who include First Nations leaders, a firefighter, young people and people living with disability, argue Australia's ongoing backing of coal and gas developments violates rights protected under the International Covenant on Civil and Political Rights, including the rights to life, family, home and culture.

The complaint follows last year's landmark advisory opinion form the International Court of Justice (ICJ), which found countries have binding obligations under international law to prevent significant climate harm and that fossil fuel production, export licensing and subsidies can constitute internationally wrongful acts.

Professor Ian Lowe, emeritus professor at Griffith University, said Australia has long had both the scientific evidence and legal framework needed to act.

"Australia has had the scientific evidence on climate change for more than thirty years. We have had the international legal obligations for almost as long," Lowe said.

"What we have lacked is a government willing to align its approval of new fossil fuel projects with either. This complaint asks the United Nations to hold Australia to commitments it has already made," he said.

The claim is being lodged under the Optional Protocol to the International Covenant on Civil and Political Rights, which Australia ratified in 1991, allowing individuals to bring complaints before the UN committee.

La Trobe University senior law lecturer Julia Dehm said the case directly links Australia's fossil fuel export policies to human rights impacts.

"The International Covenant on Civil and Political Rights obliges Australia to protect the right to life from foreseeable threats, and climate change is exactly that," Dehm said.

The complaint comes as Australia remains one of the world's largest fossil fuel exporters ranking second globally for coal exports and third for liquefied natural gas.

Climate Council fellow Wesley Morgan said the case reflects growing scrutiny of Australia's role in global emissions.

"The ICJ has now confirmed what they always knew that international law is on their side," Morgan said.

"A managed shift away from fossil fuels is inevitable. The question is whether Australia gets ahead of that or keeps trying to avoid its own legal obligations," he said.

The forestry assets, acquired from Campbell Global, are predominantly planted with Douglas-fir and western hemlock and are located near key processing infrastructure and export facilities, providing access to domestic and international timber markets.

The acquisition strengthens New Forests' position in the Pacific Northwest, one of the largest forestry regions in the United States and follows the firm's purchase of a 91,000-acre plantation forest in Oklahoma in late 2024.

New Forests North American managing director Jeff Briggs said the transaction represented a scaled entry into a strategically important market.

"This quality asset provides us with scaled entry into the Pacific Northwest forestry market, which is the second largest forestry market in the US," Briggs said.

"It aligns with our overall thesis that sustainable forest management in North America has the potential to deliver attractive investment returns while positively contributing to the local economy and environment," he said.

Beyond timber production, New Forests plans to explore additional revenue streams including carbon projects, conversation easements and renewable energy opportunities.

The property also supports a diverse ecological landscape, including habitat for species such as marbled murrelet, northern spotted owl, Roosevelt elk and North American black bear, creating opportunities for biodiversity and conservation initiatives.

New Forests North America director of investments Sam Rorabuagh   said the acquisition offered strong long-term fundamentals and multiple pathways for value creation.

"Washington State is a core timber market globally, and this investment allows us to access a high-quality, well-located estate with strong underlying market fundamentals. Our focus is on active management, optimising harvest rotations, enhancing species mix, and building asset value by accessing new markets such as carbon, to drive both yield and capital value," Rorabaugh said.

We see clear pathways to generate attractive, risk-adjusted returns for our investor while building sustainable long-term asset value," he said.

To support ongoing operations and local engagement, New Forests will partner with established forest management teams on Washingtons Olympic Peninsula.

The deal further expands the firms North American footprint, which now spans assets across the Pacific Northwest, Northern California, the US South and Oklahoma.

Portfolio poison: How ignoring modern slavery risks your returns

Question:

Why does modern slavery persist despite Australia's Modern Slavery Act, and what practical steps can investors and fund managers take to drive real change beyond compliance?

Answer:

Modern slavery remains a global issue, with an estimated 50 million people affected. Australia's Modern Slavery Act has increased awareness but hasn't yet reduced incidents. According to Måns Carlsson, OAM, head of ESG at Ausbil Active Sustainable Equity, the key is moving beyond a "compliance mindset" to genuine leadership. This means harmonising laws internationally, adopting human rights due diligence (not just reporting), and using investor influence for practical engagement with companies.

Investors can't guarantee portfolios are free from modern slavery risk, but they can:

• Incentivise suppliers to meet responsible sourcing standards, focusing on deeper supply chain tiers (not just tier one).

• Use tools like worker voice technology for real-time feedback, rather than relying solely on annual audits.

• Collaborate with other investors and advocate for stronger, harmonised laws (e.g., import bans on goods made with forced labour).

• Support companies to improve, rewarding progress rather than demanding perfection.

The real power lies in ongoing, practical engagement and policy advocacy, not just risk assessments or box-ticking.

Why it matters:

Modern slavery is not just a legal or ethical issue-it's a material risk for companies and investors. Reputational damage (as seen with Boohoo in the UK) can hit share prices hard and fast. As global regulation tightens, companies that fail to act may find their goods blocked from key markets. For investors, supporting companies to improve standards helps reduce risk, avoid negative surprises, and contribute to positive change.

Sources:

• Måns Carlsson, head of ESG, Ausbil Active Sustainable Equity

• Michelle Baltazar, executive director of media, FS Sustainability

• RIAA Human Rights Working Group toolkits

Timestamps:

00:00 - Why modern slavery persists; need for global collaboration

02:01 - Investor relevance: reputational risk, earnings sustainability

05:51 - Harmonisation, human rights due diligence, import bans

08:40 - Practical steps: engagement, worker voice tools, supplier incentives

13:19 - Responsible purchasing and unintended consequences

16:40 - Monitoring deeper supply chain tiers

18:32 - Accountability and ongoing engagement

20:54 - ESG, risk management, and performance

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/

The State of Net Zero Investment 2026 surveyed 55 respondents including Australian institutional investors and global managers with Australian operations, in total managing $3.5 trillion in assets on behalf of Australians.

Asset owners identified a shortage of climate-aligned investment opportunities as the primary barrier for the past two years, overtaking policy uncertainty.

In contrast, asset managers who manage capital on behalf of asset owners cited a lack of client demand and net zero-aligned investment management agreements as a top barrier to climate investing.

"These findings point to a persistent disconnect between institutional practices and capital allocation decisions," the report read.

The report highlights four factors hindering capital allocation at scale: uncertain tax settings, lengthy approval processes, outdated superannuation benchmark, and a lack of coordinated energy and industrial planning.

"The drivers for the difficulties in realising energy transition opportunities are multifaceted. Globally, countries compete for clean energy workforces, components, and secure supply chains - and they do so at a time of geopolitical instability across key trade corridors," the report read.

"In addition, in times of crisis, the temptation to revert to available fossil fuel sources remains real."

A globally uncertain environment calls for a clear and harmonised domestic policy settings for patient capital deployment, the report added.

"The real need is for the overall policy environment in Australia to be clear, and for there to be good, strong signals to the market that there is going to be long-term support for action on climate at that policy setting level, and that's when a lot of those concerns go away," IGCC director of investor practice Duncan Paterson said.

The report noted a faltering in the momentum of government's Capacity Investment Scheme (CIS) which underwrites revenue for renewable energy generation and clean dispatchable storage projects.

"Coupled with structural challenges across the electricity sector - including workforce shortages, supply chain constraints, and slow planning and approval processes - this may explain investors' growing demand for clearer government direction," the report read.

"Rapidly addressing workforce constraints, planning processes, and electricity market reforms remain essential tasks to enable the renewables rollout that investors and the economy require."

While the current geopolitical environment may create political pressure to reduce climate policy ambition, the report highlighted investors want stronger policies, not weaker ones.

The report also noted several studies have identified structural issues in the Australian regulatory landscape for superannuation funds that, if corrected, would help unlock institutional investment in decarbonisation opportunities, including in earlier-stage innovation and climate tech.

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.

The IGCC survey found a divergence between asset owners and asset managers on the performance test as a barrier to climate-aligned investing.

"Among asset managers, significantly more asset managers nominated YFYS as a barrier to climate investment in FY26, compared to FY25. In contrast, fewer asset owners nominated YFYS as a barrier in FY26, compared to FY25, albeit modestly," the report read.

Paterson noted the difference arises on the fact that asset owners have much longer investment time horizons than asset managers.

"It shouldn't be at all surprising to see that some of the considerations that asset owners have around the importance of an orderly transition are in terms of their ability to pay out their beneficiaries, often over 20,30,40-year time horizons. Those can be quite different motivations to the asset manager who needs to make sure that they are carrying out the shorter-term objectives of their clients," he said.

A recent report by Market Forces found Australia's top 30 superannuation funds directly contributed $771 million to the $99 billion invested in renewable energy projects since 2020. The analysis noted that while funds may have 'indirect' investment exposure through asset managers into renewable energy projects, quantifying the extent of this exposure is impossible without further disclosure.

The Market Forces report also identified benchmark performance as a barrier to investment in renewable energy.

"One such barrier is the Your Future, Your Super performance test, which can penalise funds for holding the kinds of long-duration infrastructure assets that renewable energy projects represent," Market Forces said.

"Some funds already engage in public policy advocacy, individually and through industry bodies, which is a positive step. Yet the sheer size of the super industry means its advocacy efforts could be wielded much more effectively to secure policy settings that enable a rapid and equitable clean energy transition in Australia."

Led by the University of New South Wales, ACAP brings together a consortium of Australia's leading research institutions, including the Australian National University, CSIRO, Monash University, the University of Melbourne, the University of Queensland and the University of Sydney.

The funding aims to accelerate the development of next-generation solar technologies, including high-efficiency solar cells, advanced modules and tandem solar cells, while reinforcing Australia's position as a global leader in photovoltaic.

Climate Change and Energy Minister Chris Bowen said the investment would help ensure Australia remains at the forefront of solar technology development.

"Australia helped lead the world in solar and we want to keep leading the world in the next wave of solar innovation," Bowen said.

"This funding backs our best researchers and helps turn Australian ideas into real-world technologies that can strengthen our clean energy system and create economic opportunity," he said.

ARENA chief executive Darren Miller said continued investment in solar research was critical to lowering costs and supporting Australia's broader decarbonisation ambitions.

"If Australia is to achieve ultra low-cost solar, we need to keep pushing the limits of cell efficiency," Miller said.

"ACAP's work is doing exactly that, helping deliver high performance solar cell and module technologies that will reduce costs at scale," he said.

Miller noted the research would underpin ARENA's strategy of making solar the backbone of Australia's net-zero energy system, supporting the decarbonisation of industries including green metals, transport, fuel production and data centres.

Beyond technological development, the program is expected to support the next generation of clean energy researchers, engineers and PhD students.

ACAP executive director Renate Egan said the funding provides long-term certainty for Australia's solar research sector.

"This significant investment provides a long-term research horizon and positions Australia to build on its success in developing the technologies and talent needed to deliver on next-generation solar technologies that will power a low carbon future Australia," Egan said.

Delivered through eight place-based workshops across Australia, the Financial Foundations for Business Program will support up to 80 First Nations women to strengthen their foundational finance concepts needed to participate in business with greater confidence, clarity and choice, they said.

The workshops are designed for First Nations women who are taking early steps to explore enterprise ideas, allowing them to participate in community-led economic opportunities.

Across the series, participants will improve practical capability in the core business financial foundations, including the understanding of Australian Business Numbers (ABNs), goods and services tax (GST) and tax obligations, cash flow, and how money moves through a business.

They will also receive training on separating personal and business finances, and introductory discussions around pricing, profitability, financial discipline, and navigating institutions and systems, they said.

Importantly, the pilot will also generate place-based insights into the common barriers women face in understanding business finances, helping inform future program and product design specifically targeted at supporting First Nations women, support pathways and investment opportunities.

Commenting, FNE managing director, foundation and strategy Rick Macourt said a trusted space is needed for First Nations communities to establish a better understanding of finance in businesses.

"Understanding the business financial basics is one of the biggest confidence barriers for many women at the early stages of economic participation," Macourt said.

"This partnership creates trusted spaces where Aboriginal and Torres Strait Islander women can strengthen practical knowledge, ask questions openly and build the confidence to move forward on their own terms."

IBA chief executive David Knights echoed Macourt's sentiment.

"IBA is proud to support initiatives like this that empower First Nations women to build the futures they choose - strengthening core financials skills, boosting confidence, and supporting early-stage enterprise and economic participation," Knights said.

Workshops will be held across all states and territories with the first workshop taking place in Townsville, Queensland on 15 July 2026.

All registrations are now open to all eight workshops.

The facility is an initiative within Orica's global low-carbon industrial ecosystem, supporting new technologies and solutions for the energy transition.

Developed by MCi Carbon, the plant captures carbon dioxide (CO2) from Orica's ammonia production at Kooragang Island and converts it into carbon-embodied materials used in everyday products.

These include concrete, plasterboard, paint, paper, glass and adhesives - permanently locking carbon into the raw materials the global economy already relies on.

The facility can process approximately 2500 tonnes of CO2 per year, producing up to 10,000 tonnes of saleable materials, generating several tonnes of product for every tonne of CO2 processed.

Using mineral carbonation, the process combines CO2 with naturally occurring and industrial minerals to produce stable carbonates and other materials suitable for a range of applications and can support a more circular, low-carbon economy.

Orica group executive and president AUSPAC and sustainability Germán Morales said: "MCi Carbon's technology is designed to integrate with existing industrial processes, providing a scalable pathway to reduce emissions while creating new value streams for hard-to-abate sectors such as cement, steel and chemicals."

"Located within one of Australia's key industrial hubs, the project reinforces the Hunter region's role in advancing clean energy and low-emissions innovation, with strong potential for global application."

Orica has invested in MCi Carbon since 2013, and the latest opening aligns with Orica's sustainability and commercial goals of catalysing climate action and optimising resource use through circularity.

Published in Cities, the study challenges a key assumption underpinning many housing policies, that increasing apartment supply will meaningfully improve affordability across the broader housing market.

Researchers analysed almost three decades of housing data across Sydney, Melbourne, Brisbane, Perth and Adelaide and found detached houses remain the dominant force driving price movements throughout Australia's housing system.

"House prices are driving the whole system," UNSW School of Built Environment professor Chyi Lin Lee said.

"When house prices move, they significantly affect units, not the other way around," he said.

The research separates Australia's housing market into two distinct segments, houses and units, and found the relationship between the two is highly uneven. While rising house prices tend to push up apartment values, movements in unit prices have little influence on the detached housing market.

"The assumption that units can substitute for houses at scale doesn't hold in the data," Lee said.

The study also found nearly 80% of housing price spillovers occur between cities rather than within them, suggesting investor activity is playing a significant role in transmitting price pressures nationally.

"Because Australia's capital cities are widely dispersed, cross-city price movements are unlikely to reflect typical housing needs," Lee said.

"Instead, they indicate investors shifting capital between markets in search of higher returns," he said.

While Sydney and Melbourne remain major drivers of housing market movements, Perth has emerged as an increasingly influential source of price spillovers since the pandemic, while Adelaide has largely acted as a recipient of price pressures from larger markets.

The findings suggest policies focused solely on increasing apartment construction may fail to address the structural drivers of housing affordability.

"Focusing on unit supply alone is unlikely to address the systemic drivers of price growth," Lee said.

"Without tackling investor-driven demand, supply-side solutions alone are unlikely to restore affordability," he said.

In a statement, the sovereign wealth fund said recent market volatility, geopolitical tensions and changing investor attitudes had prompted some to question the relevance of sustainable investment principles. However, it maintained sustainability remains fundamental to long term portfolio construction.

The Guardians of New Zealand Superannuation co-chief investment officer Will Goodwin noted "sustainability is not a 'nice to have', nor is it a cyclical overlay."

"It is fundamental to risk, return, and resilience over decades, making it a core component of any long-term investment strategy," Goodwin said.

The comments come as global investors increasingly move beyond traditional ESG compliance measures and adopt a broader, systems-based approach to managing long-term risks and opportunities.

Research commissioned by NZ Super Fund and investment consultant Willis Towers Watson (WTW) in 2025 found major asset owners, including sovereign wealth funds and public pension funds, were increasingly incorporating climate and sustainability scenarios into portfolio decisions making.

The fund said climate change remains the most financially material sustainability challenge facing investors and continues to shape its investment strategy.

"We explicitly recognise climate change as a major source of future uncertainty, requiring an adaptive approach to managing systemic risks and capitalising on new opportunities," Goodwin said.

"The NZ Super Fund's investment strategy is designed to navigate and to benefit from what will be a multi-decade transition to a lower-carbon global economy," he said.

The fund highlighted growing global investment in renewable energy, electrification and decarbonisation-linked opportunities, pointing to its own involvement in exploring a proposed 1GW offshore wind farm off the coast of Taranaki alongside Copenhagen Infrastructure Partners.

At full scale, the project could generate almost 10% of New Zealand's current installed electricity capacity.

This follows a recent governance setback for the NZ Super Fund, after the Guardians confirmed they would not appeal a High Court judicial review that found aspects of their sustainable investment policies were unlawful due to a lack of clarity and specificity around how human rights considerations are applied.

The ruling has prompted the fund to revise its policy framework, reinforcing the need to better articulate how ethical and sustainability standards are implemented in practice, even as it continues to argue that these considerations remain central to long-term investment strategy and portfolio resilience.

The fund said successfully long-term investing requires remaining focused on structural trends rather than short-term market narratives.

"It is about managing risk across decades, not reporting cycles," Goodwin said.

"And for the NZ Super Fund, it is about delivering resilient, long-term returns for all New Zealanders, both the present generation and those to come," he said.

Through this mandate, Nest said it will support innovative projects and companies well positioned to benefit from the transition to a lower-carbon economy.

It is designed to support growth-stage industrial and infrastructure-oriented businesses requiring scale-up, having demonstrated a commercial need that have progressed beyond early-stage risk but remain underserved by traditional infrastructure debt, it said.

"The globally focussed strategy aims to back companies, asset-backed debt, across power and energy, sustainable transportation, digital circular economy and industrial innovation sectors, backing innovators that deliver measurable, low-carbon outcomes across the real economy," Nest Invest director of public and private markets Rachel Farrell said.

Farrell added the investment is also putting members' money to work in ways that move the dial on climate actions, making it a clear "win-win" for both members and the wider market.

IFM global head of debt investments Rich Randall said the mandate expands the fund's focus to innovative infrastructure and industrial technologies that support economic resilience, energy security and supply chain strength.

"As a pension fund owned institution, IFM is focused on delivering strong long-term outcomes for working people's retirement savings through investments with resilience, durability and lasting value," Randall said.

"Through this partnership, we aim to provide flexible growth capital to high quality businesses helping drive the transformation of critical infrastructure systems, while delivering attractive risk adjusted returns for investors."

Nest became the first international owner of IFM last year by taking a 10% stake and joining the other 15 Australian superannuation funds.

As part of the strategic partnership, Nest plans to invest in IFM's infrastructure, debt and private equity strategies and increase its allocation to private markets to 30.

Last year, Nest committed close to £500 million ($930m) to seed a global infrastructure debt fund managed by IFM, which has now completed its first two investments - both located in the UK.

The investments include $82.6 million (£40m) to support the rollout of rural fibre broadband infrastructure across Scotland and the North of England, and a further $93 million (£45m) backing an energy-from-waste and decarbonisation business in the Midlands and North of England.

Nest intends to invest £5 billion ($9.5bn) through IFM by 2030.

Published by the Asian Investor Group on Climate Change (AIGCC) and ISS STOXX, the Stewardship in the Critical Minerals Value Chains report assesses sustainability performance and risks across different parts of Asia, focusing on the extraction and manufacture of three critical minerals of nickel, cobalt, and copper.

The report noted that the life cycle of a mine and its product vary significantly depending on the type of metal and mine location, and significant environmental and social challenges can emerge from multiple stages in the process of manufacturing.

"In the case of heavy metal contamination or acid mining drainage, can last centuries, through to failed reuse and waste at the end of the life cycle," the report said.

"Common sustainability issues include contamination from wastewater, greenhouse gas (GHG) emissions from energy-intensive extraction and refining, and biodiversity loss caused by land use changes for mine development.

"Additionally, mining activities pose long-term risks to communities and ecosystems. At the same time, labour-related concerns such as forced and child labour combined with unsafe working conditions remain prevalent in high-risk regions."

Engagement remains an investor tool to assess and manage portfolio companies' risks related to pollution, Indigenous rights, community consultation, and climate-related governance, it said.

Based on the Initiative for Responsible Mining Assurance (IRMA) standard, most companies have human rights, labour, and environmental policies, but fewer demonstrate robust human rights due diligence, credible targets, or consistent operational practices, the report highlighted.

Further, the physical climate risks to mining assets are set to intensify under high-emissions scenarios.

According to ISS STOXX models, water-stress and heatwave exposure across Asian mine assets will increase significantly over the next 15-30 years, threatening operational continuity and cost structures.

Senator Barbara Pocock was questioning if the Future Fund has conducted analysis of its framework on the back of a New Zealand High Court ruling against the Guardians of New Zealand Superannuation, which found its policies around investing in companies accused of human rights breaches were "unreasonable and unlawful".

However, experts contest broad-based exclusions don't always have their intended impact.

Responsible Investment Association Australasia (RIAA) chair Kate Turner, speaking at the RIAA Conference 2026 in Melbourne, noted exclusions are a blunt tool in an area which is very grey and most defence screening is based on international conventions which struggle to keep pace with the rapid changes in the industry.

Turner gave the example of a former client in the UK who had an ethical fund with a 10% revenue threshold on investments supporting military contracting.

The threshold meant the fund could invest in a company that derives 9.9% of their revenue by providing weapons to countries that are potentially committing war crimes but excluded a company that derives 100% of its revenue from bulletproof vests to the British police force, she says.

Zenith Investment Partners head of responsible investment and real assets Dugald Higgins says investors struggle to agree on where the line is in terms of their investments and this where value-judgement also comes in.

"Is it just the users of the weapons? Is it the sellers? Is it the designers? Is it the component manufacturers? Is it the people who transport them? Is it the people who dig up the raw materials to build them? Is it the people who design the software? And if you go right down the rabbit hole, you could almost exclude everything, which is probably counterproductive," Higgins says.

Turner adds the definition of a defence investment has changed significantly over the years, with investor portfolios now exposed through top tech holdings which provide military AI and dual-use technology.

Scientific Beta head of investment solutions for Australia and New Zealand Warwick Schneller says he is now observing most clients move away from "generic off-the-shelf" exclusions list towards very intentional thought-out criteria.

He notes the MSCI World Defence Index outperformed the broad market by around 50% in 2025, and excluding defence stocks could introduce a tracking error of anywhere between 0.1% and 0.5% into a fund's risk budget, a range that has become increasingly meaningful for investors.

Schneller adds funds are defining weapon classes carefully so they don't accidentally exclude a Magnificent-7 stock when that is not the intention.

Another risk Schneller mentions is many products in the space are now dual-purpose. He gives the example of Caterpillar, which was excluded from the Norway's sovereign wealth fund portfolio over how its bulldozers were being used in Gaza.

"On one hand it's a bulldozer, but if you think about it some people will say that if a bulldozer is then fitted with armour plates and is operating alongside military forces, should that then be a company that's excluded?" Schneller questions.

"But if someone does not go to an end use and defines it from a weapon class approach, then they'll say no, this is a bulldozer. How someone uses it and where it's deployed or produced in the supply chain is different."

Turner says defence companies are not used to being asked about the end-use of their products and it's something they are often not willing to talk about.

She notes while currently exclusions are the first and foremost tool investors use when it comes to defence, the market is evolving for investors to think more towards stewardship, engaging with asset managers and having an escalation process.

Schneller agrees stewardship will play an important role particularly for the dual-use technologies.

"I think that's particularly on the dual-use technologies, where large asset owners have a seat at the table and can work with companies to say we want a better sense of how this technology is going to be used," he says.

The Future Fund last reviewed its responsible investment framework in mid-2025, stating it will review its policies at least every three years. The sovereign wealth fund has continued to invest in defence giants like Palantir, Lockheed Martin, Northrop Grumman and Elbit Systems, with investments soaring in 2025.

Future Fund told the Senate it remains "comfortable and confident" with the risk of having these investments in its portfolio.

James joins U Ethical's leadership team with responsibilities for distribution, marketing and client services, bringing nearly 25 years of experience across the funds management sector.

His previous roles include board director and head of distribution at Aberdeen Asset Management.

U Ethical chief executive Brett Jollie said the appointment represents an important step as the responsible investment manager seeks to expand its market presence and strengthen relationships across the industry.

"Stuart combines deep technical expertise across funds management with a strong understanding of the drivers of successful asset management businesses," Jollie said.

"He person of integrity, sound judgement and humility who builds strong relationships and leads in a thoughtful and collaborative manner," he said.

According to U Ethical, James has a strong track record of building distribution teams, securing research ratings and platform access, and developing relationships with advisers, consultants and research houses that support growth in funds under management.

Based in Sydney, James will focus on deepening engagement with adviser, consultant and platform networks, which U Ethical identified as central to its distribution strategy.

Jollie said James' appointment was aligned with the organisation's purpose-driven approach to investing,

"Stuart is excited about the opportunity ahead and his values align closely with what U Ethical stands for," Jollie said.

"He understands that our purpose is not just our point of difference- it is the foundation from which we intend to grow," he said.

James commenced in the role on June 16.

The appointment follows broader leadership changes at U Ethical. Earlier this year, the firm announced Jollie as its new chief executive, succeeding long-serving chief executive Matthew Browning. At the time, U Ethical said Jollie's appointment would help accelerate its growth strategy and expand its reach across Australia's institutional and wholesale investors markets, with the manager overseeing approximately $1.5 billion in funds under management.

Is Your Portfolio Missing Out? The Green Bond Boom Explained

Question:

How have green bonds evolved, what risks and opportunities do they present for investors, and what are the biggest misconceptions about this asset class?

Answer:

Green bonds have grown into a US $2 trillion global market, with Europe leading but APAC and emerging markets catching up. According to Johann Ple, senior portfolio manager at BNP Paribas Asset Management, green bonds now offer broad sector diversification and transparency, making them a credible alternative to conventional bonds. Risks are similar to traditional bonds (interest rates, credit spreads), but greenwashing and sector concentration require careful due diligence. Misconceptions about lower returns ("greenium") are fading, and green bonds are increasingly viable for all investors, not just those focused on sustainability. Australian super funds and institutional investors can now build custom strategies, aligning portfolios with net zero ambitions without sacrificing performance.

Why it matters:

For investors, green bonds represent a way to combine positive environmental impact with competitive returns and transparency. The asset class is mature enough for custom strategies, with over 800 issuers and broad sector representation. Understanding the risks and debunking myths is crucial for informed allocation, especially as demand grows in Australia and globally.

Sources:

• Johann Ple, senior portfolio manager, BNP Paribas Asset Management

• Michelle Baltazar, executive director of media, FS Sustainability

• Responsible Investing Association Australia

• EU Green Bond Standards, APAC market data

Timestamps:

00:00 US as a missed opportunity for green bonds

02:07 Market size: $2 trillion, Europe dominates, APAC and emerging markets rising

03:50 Sector diversification: utilities, banks, real estate, transport, telecom

06:54 Risks: conventional bond risks, greenwashing, sector concentration

09:00 Greenwashing: issuer and project due diligence

11:25 Australia's role: investor and issuer, custom strategies for super funds

13:03 Misconceptions: returns, "greenium", ESG backlash

16:54 Growth drivers: APAC, emerging markets, not just Europe

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

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

The statement was formally adopted by a meeting of the G7 and partner countries' top companies, financial institutions, and industry associations in Paris on June 10 at the Critical Minerals Investment Forum.

The statement calls for greater mobilisation of private capital to build resilient and diversified critical minerals supply chains and for stronger coordination between public and private actors.

The 39 signatories include Airbus, BNP Paribas, Goldman Sachs and JP Morgan among others.

"Too often, these discussions focus on policy ambitions and supply-side development without taking into account the nuts and bolts that capital needs to build an investment case - in this case, to support the investment of working Australians' hard-earned retirement savings," ASFA chief executive Mary Delahunty said.

She said the forum made clear to policymakers that innovative approaches are needed to answer the critical minerals questions their governments need to answer.

"This could include blended finance, public-private partnerships, offtake agreements, and new mechanisms to help de-risk early-stage critical minerals projects," she said.

Delahunty noted resilient critical minerals supply chains will ultimately depend on the ability to mobilise large-scale, patient capital for long-term projects.

"From a superannuation perspective, the conversation needs to be around how capital is actually allocated, beyond the diplomatic community identifying that capital needs to be allocated. That means addressing things like the need for project transparency, strong governance, and appropriate risk-adjusted returns," she added.

Delahunty said Australia was the only country at the table bringing the pension sector directly into the conversation and ASFA will continue to work with the government and international counterparts to take this work forward.

The regulator claims that between January 2021 and April 2024, Grill'd represented it would donate $1 from every burger purchased on a Tuesday towards planting trees, when in reality, only a small proportion of purchases qualified for a donation.

ACCC chair Gina Cass-Gottlieb said the watchdog considered the conduct a form of greenwashing.

"In fact, only a small percentage of purchases on Tuesdays qualified for a donation by Grill'd because of the detailed conditions of the promotion, which we say were not disclosed or not adequately disclosed to customers," Cass-Gottlieb said.

According to the ACCC, customers were required to meet a range of conditions before a donation would be triggered. Purchases had to be made on a Tuesday, involve a burger or salad, be made by a member of the Grill'd Relish loyalty program, dine-in only, ordered at the counter, accompanied by a loyalty barcode scan, and not combined with another offer.

The regulator alleges that while more than five million burgers were purchased on Tuesdays during the relevant period, only around 4% qualified for a donation. More than one million burgers were purchased by Relish members, yet only 17% of those transactions met all eligibility requirements.

The ACC's case centres on 26 advertisements published across social media, online channels and in-store marketing materials. The regulator alleges the campaign overstated the circumstances in which donations would be made and may have influenced environmentally conscious consumers.

"Any business that seeks to appeal to consumers' environmental concerns must make sure that its claims are accurate and that any conditions or qualifications are adequately disclosed," Cass-Gottlieb said.

The ACCC is seeking declarations, penalties, costs and other orders. The case follows a series of recent regulatory actions targeting alleged greenwashing across Australia.

The Financial Conduct Authority (FCA), which regulates the financial services industry in the UK, estimates investment firms could save around £20 million ($41.6m) a year by replacing detailed product-level reports based on the Task Force on Climate-related Financial Disclosures (TCFD) with simpler, more targeted information.

"As part of being a smarter, more proportionate regulator, we're cutting complexity in our rules for asset managers, while keeping the focus on clear, useful information for investors," FCA director of wholesale buy-side Michelle Beck said.

"These proposals will make it easier for firms to communicate with their customers in ways that genuinely inform and engage them."

It is seeking views from asset managers, asset owners, trade bodies, and consumer groups to ensure the proposed rules work in practice and support growth.

In its review, FCA found that TCFD product reports were getting low engagement from retail investors while institutional investors can typically engage directly with firms to meet their specific information needs.

The FCA found while the rules have improved firms' awareness of climate risks, product-level reports are often seen as too complex by investors and not widely used.

"Firms thought that TCFD reporting has generally been helpful for raising awareness of climate risks in the market. However, they don't consider product-level TCFD reporting to be a useful climate risk management tool as they have their own ways of identifying and monitoring climate risks," FCA said.

"More broadly, firms encouraged us to consider international competitiveness given the cost of producing the reports and that investment products domiciled in other jurisdictions are not subject to these requirements."

FCA said the changes aim to give investors clearer insight into how climate risks, such as floods, storms and other extreme weather events, could affect investment performance, while reducing unnecessary costs to firms.

New data from the Australian Bureau of Statistics (ABS) showed government and R&D spending increased 1% to $4.4 billion in 2024-25 compared to 2022-23. However, when adjusted for inflation, expenditure declined 4% in real terms.

ABS head of business statistics Tom Lay said the increase represented the weakest growth in government R&D spending since 2018-19.

"This 1% increase in government R&D expenditure is the lowest since 2018-19, when it grew 2%," Lay said.

Government spending on R&D as a proportion of gross domestic product also slipped, falling from 0.17% in 2022-2023 to 0.16% in 2024-25.

Environmental sciences recorded the largest increase in funding, rising $224 million, or 55%, to becoming the leading field for research expenditure across government organisations. The sector overtook biomedical and clinical sciences, which saw spending increase by $78 million, or 14%.

"We are continuing to see rises in spending towards environmental related R&D. Growth in in this area aligns with government investment to promote renewable technologies aimed at reducing carbon emissions under the Net Zeror Plan," Lay said.

Meanwhile, spending fell sharply in several other disciplines. Information and computing sciences recorded the largest decline, down $112 million, or 25%, while agricultural, veterinary and food sciences fell $67 million, or 11%.

At the jurisdictional level, Commonwealth government R&D expenditure declined 1% to $2.8 billion, while state and territory government spending increased 3% to $1.6 billion.

"At the Commonwealth level, R&D spending focused mainly on defence and environmental management. At the state and territory level, R&D spending was directed mainly toward health," Lay said,

The figures highlight a shifting research landscape as governments prioritise environmental and climate related initiatives despite overall R&D investment losing ground in real terms.

The launch of the Global Landscape Opportunities (GLO) strategy offers investments across forestry, agriculture, and complementary markets such as carbon and biodiversity.

It will be established in Luxembourg for opportunities across North America, Europe, Australia-New Zealand, Latin America, Southeast Asia and Africa.

The GLO strategy will invest across a broad spectrum of natural capital assets, including sustainable forestry assets, agricultural land and food production systems, carbon and climate-related investments, and biodiversity and ecosystem markets, New Forests said.

New Forests chief executive Mark Rogers said the launch is in response to growing investor demand for institutional-grade, global allocations to natural capital.

"The launch of our Global Landscape Opportunities strategy marks a significant step in the evolution of New Forests as a global natural capital investment manager," he said.

"We are seeing strong investor demand for scalable, institutional strategies that provide diversified exposure to natural capital.

"Natural capital is increasingly recognised as a core component of resilient portfolios, offering the potential for long-term returns while supporting critical outcomes such as climate stability, biodiversity and sustainable land use."

Meanwhile, global head of investments David Shelton said the capital markets increasingly recognise the role of land-based assets to provide returns and diversification.

"Historically, many investors have accessed natural capital through regional allocations, but not all institutions have the scale, resources or expertise to build and manage global portfolios themselves," Shelton said.

"Building on New Forests' regional return performance, this strategy allows investors to access a diversified global portfolio where we actively allocate capital across regions, sectors and markets to optimise outcomes."

The target audience for GLO is institutional investors including pension and super funds, insurance companies, family offices, endowments and foundations, New Forests said.

The report by RIAA notes private markets, spanning private equity, private credit, real estate and infrastructure are attracting greater attention from investors. This is due to their potential to deliver diversification, differentiated returns and access to opportunities not available through public markets.

While responsible investment (RI) approaches such as ESG integration, stewardship, thematic investing and impact investing are common in listed markets, the report argues private markets offer unique advantages because investors often have greater influence over assts and management decisions.

"One of the most effective ways of implementing RI in private markets is through engagement," the report said.

Unlike public market investors, private markets managers frequently hold direct operational control or significant influence over assets, enabling them to implement sustainability initiatives more directly and create long-term value.

The report highlighted RI could help private market investors manage climate, governance and social risks while identifying new growth opportunities, improving operational efficiency and strengthening business resilience.

It also warned that ESG risks can be magnified in private markets due to the long-term and illiquid nature of many assets.

"As critical assets for companies or essential infrastructure for society, their physical nature means they are often carbon-intensive and exposed to both physical and transition risks over long time horizons," the report said.

Several case studies were cited as examples of RI in action.

These included Australian Ethical investment's Growth Opportunities Fund, which had secured more than $700 million in commitments and invests in themes such as decarbonisation, digitalisation and demographic change. Early investments include electric bus infrastructure in India and innovative ages care developments in Australia.

The report also highlighted Kilter Rural's Murray Darling Basin Balanced Water Fund, which combines commercial water investments with environmental restoration projects, and Nuveen's Nature Positive Farming Initiative which links farmland productivity with biodiversity, water management and emissions reductions outcomes.

RIAA's latest fact sheet notes while the principals underpinning responsible investment are broadly consistent across public and private markets, private assets offer investors additional tools to drive measurable environmental, social and financial outcomes through long term stewardship and active ownership.

Artificial intelligence (AI) is rapidly emerging as a defining force in the global economy. It is already accelerating progress in many industries including climate modelling, agriculture and healthcare.

At the same time, its expansion is driving demand for energy-intensive data centres, increasing pressure on electricity systems, emissions and water use. It is also raising issues around labour displacement, bias and misinformation, data privacy and market concentration.

This tension is the crux of the ethical AI debate.

For investors, the challenge is no longer whether to invest in AI but whether it can be done in a way that aligns with responsible investment principles.

AI and sustainability: Two sides of the same coin

Much of the debate around AI and sustainability has centred on its environmental footprint.

Training and operating large models require significant computational power. The data centres supporting this infrastructure consume vast amounts of electricity and depend on advanced cooling systems. The International Energy Agency (IEA) expects demand from AI and data centres to quadruple by 2030.

While these concerns are well-founded, they capture only one side of the equation. AI is emerging as a tool to improve efficiency across high-emissions sectors. It is being used to optimise electricity grids and integrate renewables, enhance industrial processes and reduce energy intensity and improve building energy management. AI is both a consumer of energy and a potential enabler of decarbonisation. AI's impact will depend on how it is deployed and the nature of the energy systems supporting it.

For investors, AI is not a single, homogenous theme but a layered ecosystem. Its environmental and social implications vary significantly depending on where a company operates within that ecosystem.

Mapping the AI value chain: Where do the ethical risks and opportunities sit?

In our view, the environmental risks of AI are concentrated primarily in the infrastructure layers, while social and governance risks sit closer to the end user. We believe that a layered structure provides a more nuanced way to approach the AI theme. Rather than treating AI as a binary decision, this allows investors to differentiate between parts of the ecosystem based on their risk profile and potential for positive impact.

Semiconductor companies such as Nvidia (NASDAQ: NVDA) and ASML (NASDAQ: ASML) form the backbone of this ecosystem. Their key environmental, social and governance (ESG) considerations centre on supply chain resilience as well as the energy and water intensity of manufacturing. These companies may be one step removed from how AI is deployed but they are not fully insulated from its downstream impacts.

The use of their products contributes to the overall energy demand of AI systems and may be reflected in Scope 3 emissions [indirect greenhouse gas emissions occurring across an organisation's value chain, for which it is not directly responsible nor directly controls], even if these impacts are not directly controlled and are harder to measure.

The layer following semiconductors is the cloud infrastructure layer, where hyperscale providers deliver the computing power required to scale AI. This is where the environmental footprint is most concentrated. As adoption accelerates, this layer is likely to drive incremental demand and offer the greatest opportunity for efficiency gains and renewable energy integration.

At the model layer, developers such as OpenAI and Anthropic sit at the centre of governance and societal risks such as safety, misuse, bias, misinformation and transparency. Software and platform companies that embed AI into products and services used by businesses and consumers sit at the application layer. This is where social impact and the real-world benefits of AI become most visible.

Playing AI through an ethical lens: Choosing the right parts of the value chain

So how does this translate into portfolio construction?

In our view, playing AI ethically is less about avoidance and more about directing exposure toward parts of the value chain where risks are more manageable and outcomes better align with sustainability objectives.

This often begins with the infrastructure layer. Companies such as Nvidia are at the core of the ecosystem, providing the computational power for AI. While AI growth has increased overall energy demand, successive graphics processing unit (GPU) generations have improved performance per watt, reducing overall energy use.

Beyond chip design, Nvidia is also advancing system-level efficiency through software optimisation and accelerated computing, alongside broader sustainability initiatives across its operations and supply chain.

Further upstream, ASML plays a critical role in enabling advanced semiconductor manufacturing. While chip fabrication is energy and water intensive, ASML is increasing material circularity and working with customers to reduce energy use per wafer [a thin slice of semiconductor material used in manufacturing microchips]. It is also setting emission reduction targets and system-level improvements that can scale across the supply chain.

At the application layer, Salesforce and Adobe are embedding AI into enterprise and creative platforms with a strong emphasis on governance. Salesforce has established an Office of Ethical and Humane Use of Technology and introduced its Einstein Trust Layer to support data privacy, transparency and safe use of generative AI. Adobe has integrated responsible AI principles across its product suite, with a focus on content authenticity, attribution.

The common thread across these examples is not the absence of risk, but that these companies operate in areas where risks are more measurable and are open to engagement.

Responsible AI and engagement: The ethical investor's edge

While selecting the right companies is an important part of playing the AI theme responsibly, it is only part of the equation. Investors are increasingly thinking about where to invest and how companies are developing and deploying AI responsibly.

The CSIRO's Responsible AI framework provides a practical foundation for investor engagement on AI governance and responsible use in Australia. It outlines how organisations can identify and manage risks such as fairness, accountability, transparency, privacy and safety; encouraging governance, impact assessments and controls across the AI lifecycle.

A framework such as this enables more structured engagement. Rather than broad discussions, investors can focus on governance, oversight and risk management, including how companies address bias, misinformation and misuse, and how real-world impacts are assessed and monitored.

Given AI's rapid evolution, this process of continuous dialogue between investors and companies is essential.

Is there an ethical way to play AI?

AI is at the intersection of the most powerful forces shaping markets today, from energy systems and labour dynamics to data, geopolitics and technological concentration. As a result, it does not lend itself to simple labels of 'ethical' or 'unethical' in the way traditional sectors might.

For investors, the implication is clear. As AI continues to evolve, ongoing dialogue between investors and companies will play a central role.

Outcomes will depend not just on exposure, but on how that exposure is understood and managed over time. Looking through the value chain, assessing environmental and societal impacts, and engaging on responsible AI practices, will be critical to navigating both the risks and opportunities.

In that sense, the ethical way to play AI is not a fixed answer, but a moving target. It requires a process that evolves alongside the technology itself, adapting to new risks, new opportunities and new expectations. And in a theme evolving as quickly as this, that process may matter more than the starting point.

First Sentier MUFG Sustainable Investment Institute director Sudip Hazra said one big gaps they found was in the understanding of financial materiality and portfolio impact of ocean themes.

The framework breaks down these risks including degradation threats such as storms and sea level rise, operational risks such as supply chain disruptions, transition risks as well as reputational risks for consumer-facing business models.

"In the framework we come up with items where a portfolio manager or any kind of investor could look at those risks, help to apply those risks to their portfolio, and really come up with specific outcomes and engagement questions to be able to evaluate and act on those risks better," Hazra said.

Hazra noted we are all getting a free subsidy in terms of natural climate regulation from the ocean and it is not going to be free if we don't maintain it.

"First of all, we would want investors to understand the dependencies within their portfolio holdings on oceans. Secondly, the impacts are obviously very important. What impacts are their companies actually having on the ocean?" he said.

Hazra emphasised investors shouldn't feel overwhelmed by this as something brand new that they have to start from scratch.

"We think there's a lot in investment methodologies around sustainability that already can potentially build in oceans and really requires the extension of current work to extend to oceans as a thematic," he said.

Hazra said the report is broad and specific in its approach with a section being sector agnostic and designed to be top down, where investors can look at the issues regardless of their specific sector or even asset class.

It also identifies ocean dependent sectors such as fisheries, aquaculture, marine transportation, tourism and offshore oil and gas and risks to them.

In terms of adoption, Hazra said one blocker could be psychological.

"I think one of the first blockers is perhaps psychological and sustainable investors already have so much on their plate. One objection might be whether a sustainable investor has resources that they perceive are needed to handle a topic like this," he said.

"One thing we would emphasise is that you don't actually need to be an expert on oceans to be able to integrate it."

The platform, expected to launch in the second half of the year, will be jointly controlled by Mitsubishi HC Capital and Brookfield, where the latter will be responsible for the operational aspect. Future asset acquisitions will be subject to approval from both entities, with each contributing on a pro rata basis, they said.

The seed portfolio comprises approximately 570 megawatts (MW) of installed capacity diversified across the UK, Spain, Sweden, Finland, France and Ireland, with an equity value of about $658 million (€400m).

The assets are under long-term power purchase agreements, which have a weighted average remaining term of approximately 10 years, they said. Collectively, the assets offer a "highly stabilised" cash flow profile amid strong downside protection and resilience across market cycles.

The platform is also evaluating potential future acquisitions of additional renewable energy assets in Australia, including onshore wind, utility-scale solar and battery energy storage facilities.

Brookfield's Energy Group deputy chief investment officer Ignacio Paz-Ares said: "We are pleased to partner with Mitsubishi HC Capital to launch a scaled renewable energy platform anchored by a diversified seed portfolio of high-quality operating assets."

"With the potential to deploy significant additional capital into a pipeline of renewable power assets, the platform is well positioned for growth across Europe and Australia."

Meanwhile, Mitsubishi HC Capital general manager and senior corporate officer Hayato Shinada said the initiative is well aligned with the business' portfolio strategy.

"By combining Mitsubishi HC Capital's financial and investment expertise with Brookfield's asset management capabilities, we will build and scale our business platform to deliver reliable and sustainable operations," he said.

"In addition, we will leverage expertise in development and operations gained through our broader European renewable energy partners, including European Energy A/S. As the importance of renewable energy continues to grow, particularly from an energy security perspective, we will leverage our European platform to expand globally and pursue growth opportunities, driving long-term value creation."

New Zealand's bipartisan Modern Slavery Bill passed its first reading in April 2026 and is currently under review by the Education and Workforce Select Committee.

The signatories noted New Zealand's key trading partners including the UK, Canada and Australia already have modern slavery laws in place while several others have adopted or are considering forced labour import bans.

"Failure to introduce appropriate modern slavery legislation carries significant risk. As our trading partners tighten their due diligence and enforce import bans on goods made with forced labour, Aotearoa New Zealand risks damaging international business relations and emerging as a soft entry point for risky goods," the signatories said.

"Appropriate legislation provides the clarity and consistency needed to support this work, creating a level playing field to ensure all businesses are required to meet these standards."

The 32 signatories represent institutional investors and New Zealand businesses accounting for more than NZ$324 billion ($268bn).

"The undersigned, representing a strong cross section of the private sector, support a legislative response to modern slavery. We urge political collaboration to ensure passage of new laws without undue delay and look forward to supporting the progression and implementation of this regime," the signatories said.

Australian Human Rights Institute director Justine Nolan recently said while the current Australian Modern Slavery Act raises awareness in educating people on the problem but falls short in following through and being effective. She noted it is about ticking a box and getting the processes in place rather than being impact or outcome focused.

An assessment by Monash Centre for Financial Studies on Australian reporting standards also found that while more companies are complying with reporting requirements and the quality of compliance is improving, companies continue to have inadequate due diligence, poor supply chain descriptions and modern slavery risks identification.

The ASX-listed building products manufacturer released its Q1FY26 results on 20 August 2025 while also downgrading its FY26 guidance. Following the release, its share price declined by approximately 34%, wiping billions of dollars from its market capitalisation.

It first provided its FY26 guidance on the ASX on 21 May 2025.

The class action alleges James Hardie knew its performance was deteriorating well before 20 August 2025 but failed to update the market.

The proceedings have been brought by anyone who acquired James Hardie shares between 21 May 2025 and 19 August 2025. The investigation is being led by Slater and Gordon and has been filed in the Supreme Court of Victoria.

The proceeding is likely to allege that James Hardie engaged in misleading or deceptive conduct and breached its continuous disclosure obligations, in contravention of relevant sections of the Corporations Act 2001 and ASX listing rules.

Jamies Hardie said it considers it has at all times complied with the disclosure requirements, denies any liability and will vigorously defend the proceedings.

Last year, the firm was also under fire over a $14 billion deal to acquire US-based Azek. A deal that was done without an investor vote, leading to backlash from other major investors including AustralianSuper, UniSuper, Aware Super and HESTA.

This led the ASX to launch a review into shareholder approval requirements for mergers and takeovers of listed companies undertaking a significant transaction.

The partnership forms part of ANZ's 10-year Australian First Nations Strategy, dubbed Fuelling the Fire, to invest in First Nations-led financial education and wellbeing initiatives that support economic self-determination, the bank said.

Over the two-year partnership, the foundation's in-person community outreach will expand, ANZ said, and is expected to support hundreds more First Nations people nationally to build financial capability, confidence and pathways to improved financial outcomes.

First Nations customers will also gain access to culturally grounded financial education, through the foundation's My Money Dream and My Business Dream programs.

Additionally, over the period, ANZ staff will receive cultural competency training to better understand First Nations peoples' unique relationships and struggles with money, ANZ said.

ANZ head of First Nations strategy Shelley Cable said investments in First Nations-led solutions remain crucial for the group.

"Our shared ambition with First Nations Foundation is to invest in First Nations people to become financially empowered and confident," Cable said.

"This will create greater choice, opportunity and self-determination for First Nations people, customers and communities."

The collaboration builds on the success of First Nations Foundation's Financial Wellness Outreach initiative, which has already helped reconnect First Nations people with more than $31 million in lost superannuation since 2016.

First Nations Foundation chief executive Leah Bennett added: "By choosing to partner with First Nations Foundation, ANZ is not just supporting a program or a project, they're investing in community-led solutions, cultural strength and long-term change. Self-determination is central to how we lead and design our work."

"Our communities know what's best for us, and we're at our strongest when we're backed by the trust, leadership and support of partners like ANZ."

Nearly three-quarters (72%) of ASX300 boards now have 38% female representation, marking meaningful progress on gender diversity, according to the latest BDI, which was compiled by Watermark Search International, the Australian Institute of Company Directors (AICD) and Deloitte. The proportion of female board members steadily rose from 36% in 2024 to 37% last year.

The share of boards with equal gender representation climbed to 21%, while all-male boards fell sharply to just 1.4% in 2026 from 4.3% in 2024. A minority (14%) of boards currently have one woman or none.

The 12th annual report also found women hold 38% of board seats, up one percentage point on last year.

AICD chief executive Mark Rigotti said the findings reflect mixed progress.

"Progress on gender diversity has continued, with women holding a growing share of board seats and fewer all male boards than ever before. That progress did not happen by chance. It reflects sustained attention by boards, investors and the broader governance community, and it shows that change is possible when intent is maintained over time," he said.

In terms on ethnicity and Indigenous representation, the BDI highlights a deterioration in cultural and ethnic diversity. Participation by Indigenous directors has fallen - now holding only five positions, down from seven.

Directors from non-Anglo-Celtic backgrounds account for 6.5% of board seats, while representation of international directors also declined. One quarter (24% down from 29%) are from outside Australia. The top three representations come from North America (47.5% up from 37.4%), the UK (16.4% up from 14%) and New Zealand (15.6% down from 24%).

"At the same time, momentum is slower in other areas. Representation of directors from culturally diverse backgrounds remains limited, and participation by Indigenous Australians and other under-represented groups is still very low," Rigotti said.

"These results invite boards to look beyond the current snapshot and consider whether existing approaches to skills matrices, succession planning and search practices are sufficiently broad for the challenges ahead."

The BDI also pointed to gaps in other aspects of diversity. Only one additional director identified as LGBTQ+, while no board members reported having a disability.

Data overload or data goldmine? Investors race to decode nature's signals

Question:

How can geospatial tools help investors move from climate risk mapping to nature risk management, and what does this mean for investment decisions?

Answer:

Geospatial data, like satellite imagery and sensor data, has moved from being a reporting tool to a strategic asset for investors. According to Josh Gilbert, head of geospatial strategy, ISS STOXX Sustainability, the challenge is no longer data starvation but "data digestion": translating abundant, complex environmental data into clear, actionable financial insights. Sectors with tangible assets (like mining, real estate, and infrastructure) are most directly impacted, but as supply chains and nature risks become more visible, all asset classes are affected. The investors who learn to integrate geospatial and nature data into their decision-making will gain a competitive edge.

Why it matters:

For investors, this shift means that understanding climate and nature risks is no longer optional or just a compliance exercise. The ability to interpret and act on geospatial data will increasingly drive portfolio resilience, risk management, and even alpha generation. Those who treat nature and climate data as core investment signals, not just pretty dashboards, will be better positioned in a volatile, changing world.

Sources:

• Josh Gilbert, head of geospatial strategy, ISS Stoxx Sustainability

• Michelle Baltazar, executive director of media, FS Sustainability

• European Space Agency, SustGlobal, Responsible Investing Association Australia

• Industry frameworks: TCFD, IFRS, SASB

Timestamps:

00:00 Data digestion vs data starvation

01:15 Guest background: from economics to geospatial strategy

03:22 Why investors struggle with climate and nature risk

04:59 How geospatial data moves from reporting to real investment insight

06:22 Sectors most impacted by climate and nature risk

08:44 Misconceptions: dashboards vs actionable metrics

10:53 Nature risk management: real-world examples

12:32 The next decade: AI, numeric models, and financial integration

15:32 Competitive edge for early adopters

16:56 Final thoughts and wrap-up

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/

*Both FS Sustainability and ISS STOXX Sustainability are owned by ISS STOXX.

In a report, Out of Gas: Managing the decline of gas in Australia, the Grattan Institute argues governments have avoided difficult decisions about the long-term future of gas despite Australia's commitment to reach net zero emissions by 2050.

Speaking on the Grattan Institute podcast, energy program director Alison Reeve said gas use was already falling across households, industry and electricity generation, but not quickly enough to meet climate targets.

"We have to start grappling with the reality that gas is not going to last forever," Reeve said.

The report warns that while renewable gases, hydrogen and carbon capture technologies will play a role in reducing emissions, they will not be sufficient to sustain current levels of gas consumption.

"What that points you towards is we need to reduce the amount of gas that we're using," Reeve said.

Grattan said governments should provide clearer long-term signals, including setting phase out pathways for household gas use and better coordinating planning between gas and electricity networks

The report highlights the risk of a "death spiral" for gas networks as more consumers electrify, leaving fewer users to shoulder the fixed costs of maintaining pipeline infrastructure.

"The worry is that you could get into a situation with completely unmanageable gas bills for some people," Reeve said adding that vulnerable households could be disproportionately affected if governments fail to manage the transition.

The Grattan Institute also said policymakers need to rethink the future role of gas fired generation. While batteries are increasingly replacing gas for short term grid support, Reeve said gas would still be needed during prolonged periods of low renewable output.

"We know we're going to need it, and we know that there's going to be times when you get that two-week period in winter where its cloudy and its cold," she said.

Beyond domestic consumption, the report argues Australia should prepare for a gradual decline in its liquefied natural gas export industry as global decarbonisation efforts accelerate and international buyers reduce demand.

"We need to make sure that we are getting the best value that we can out of having an LNG export sector at the moment," Reeve said.

The report calls for governments to better integrate gas and electricity planning while ensuring taxpayers are not left carrying future rehabilitation costs from ageing gas infrastructure.

Cracking the code: Using nature data to understand the impact of the ASX200 assessed the nature-related impacts and dependencies of Australia's ASX200 companies, drawing on data from three widely used assessment tools GIST Impact, MSCI, and S&P to provide a comparative view of nature-related impacts.

The impact by the sectors is driven primarily by greenhouse gas emissions, water consumption and land use pressures.

The report noted sectors that appear to have lower impact when assessed on direct operations alone such as financials, IT and consumer staples, often exert significant influence on nature.

This can be through capital allocation, energy and water demand, and global value chains that can create impacts on ecosystems far from the physical footprint of a company, the report said.

"These impacts are currently difficult to capture using existing datasets but represent a growing source of unpriced risk for investors," the report read.

However, the report noted while there are significant gaps in the data available to assess nature-related impacts, these gaps should not justify inaction.

"The direction of risk is clear, and evidence across multiple datasets supports consistent sector level conclusions," the report read.

"Differences between tools primarily reflect methodological limitations, particularly the partial treatment of supply chain and financed impacts, rather than disagreement about the sectors in which nature-related risks are concentrated."

Where data is limited in understanding the individual company impacts, the report encouraged engagement for better company-level understanding using the Taskforce on Nature-related Financial Disclosures (TNFD) framework.

"Investors can use capital allocation, system stewardship and company-specific engagement to address systemic and company-specific nature-related risks," the report read.

"Investors can use data from assessment tools and company reporting to identify drivers of nature loss, and the investors' points of leverage to address those key drivers."

The third guide in the series, Asking Better Questions on Nature, targets chief financial officers, providing a practical framework to assess how dependencies on nature could materially impact the financial performance, valuation and long-term strategy of their companies.

In using the guide, CFOs can integrate nature-related considerations across risk management, capital allocation, financial planning and performance management.

It helps CFOs keep in mind that business activities do contribute to nature loss, degrades nature's capacity to provide the inputs businesses across sectors need from it.

The guide also highlights the risks arising from a company's impacts and dependencies on nature can include stranded assets, disruption to operations, higher production costs, increased insurance premiums and reduced asset values.

TNFD chief executive Tony Goldner said nature has quickly moved from a corporate social responsibility and compliance issue to a strategic risk and opportunity management imperative.

He added that CFOs must now understand how the resilience of cash flows of their business depend on nature's flow of essential inputs into their operations and business model.

A4S executive chair Jessica Fries pointed to research indicating that 85% of companies in the S&P Global 1200 have significant dependencies on nature within their direct operations.

"[Therefore], gaining a better understanding of nature-related risks and opportunities, impacts and dependencies, is critical," she said.

The guide presents 11 questions for CFOs to consider on how nature-related information and insights can be integrated into financial and risk management processes. It also outlines the information they should look for in materials and recommendations prepared by their teams, helping them prepare for increasing scrutiny from boards, investors and other stakeholders.

Last year, the TNFD released similar guides for board directors and asset owner investment committees.

King Charles established A4S in 2004 with the aim of helping finance leaders adopt sustainable and resilient business models by giving them the tools to embed environmental and social risks directly into economic decision-making.

BDO's Global Risk Landscape 2026 report said Australian organisations are grappling with a risk environment where geopolitical instability, cyber threats, artificial intelligence and regulatory pressures increasingly overlap.

It found that 83% of business leaders believe risks are becoming increasingly interconnected and complex, while 89% said they now consider the interdependencies between risks when assessing threats.

Meanwhile, more than half of business leaders (52%) said they find it difficult to distinguish meaningful risk signals from background noise, while 55% said short-term operational pressures frequently override long-term risk planning.

Commenting, BDO Australia risk advisory partner Michael Hill said the findings highlighted a growing disconnect between the way risks emerge and the way many organisations continue to manage them.

"Risk is no longer a series of isolated events that can be managed within individual functions," Hill said.

"Geopolitical disruption, cyber threats, regulatory change and emerging technologies increasingly interact with one another. This means organisations need a clearer understanding of how these risks connect and what that means for decision-making across the business."

Hill said many organisations are still managing risk through disconnected functions, despite threats increasingly cutting across every part of the business.

"Risk doesn't arrive neatly packaged anymore," he said.

"A geopolitical event can become a supply chain issue, a cyber issue, a regulatory issue and ultimately a financial issue. Organisations that continue to assess those risks in isolation will struggle to respond quickly enough."

Businesses best placed to navigate uncertainty would be those that embed risk ownership more broadly across leadership teams, rather than leaving it solely to specialist risk functions, he added.

"Half of the business leaders surveyed said they believe risk information remains siloed across departments, while only nine per cent described their risk management approach as very proactive," Hill continued.

"This creates an environment where those best placed to navigate uncertainty will be those that embed risk ownership more broadly across leadership teams and operational functions."

The Lonsec Investment Governance Solution (IGS), which is integrated into the research house's iRate platform, is designed to centralise governance monitoring by bringing together fund ratings changes, performance trends, fee movements and other investment signals into a single reporting framework.

The launch comes as governance obligations across advice, superannuation and platform businesses continue to evolve, placing greater emphasis on demonstrating robust and defensible investment decision making processes.

Lonsec executive Lorraine Robinson said investment governance has become a critical focus across the financial services industry.

"Across advice licensees, platforms and trustees, expectations around governance have never been higher," Robinson said.

"Advisers and clients want to know that investment options are being monitored and accountability. The Lonsec Investment Governance Solution provides the framework and transparency that supports better decision making and greater confidence at every level," she said.

The solution seeks to address a common challenge for governance teams which continue to rely on spreadsheets and fragmented monitoring processes to oversee investment menus and approved product lists.

According to Lonsec, the platform creates a structured audit trail that enables organisations to document how investment decisions are reached and monitored over time.

Lonsec head of sales Anna Schofield said recent events across the financial services sector had heightened awareness of governance responsibilities.

"With recent high-profile failings in our industry, the focus on investment governance has intensified and the obligation on those who manage APLs and investment menus in particular has become clearer," Schofield said.

"By embedding governance signals directly within iRate, the Lonsec Investment Governance Solution gives investment teams and advisers greater clarity and confidence in decision making, with a clear and defensible record of how and why decisions were made," she said.

The solution is targeted at advice licensee, investment committees, trustees and platform operators seeking to strengthen governance frameworks while reducing the administrative burden associated with ongoing investment monitoring.

Lonsec said the offering builds on its existing research capability, which covers more than 1900 investment products and is supported by a local research team focused on the Australian market.

The move reflects growing industry demand for governance tools that can help firms evidence oversight processes as regulators place increasing emphasis on accountability, transparency and member outcomes.

The review examined 26 sustainability reports lodged by Group 1 entities under the Australian Sustainability Reporting Standards (AASB S2), which required companies to disclose how climate-related risks and opportunities could affect their financial performance and long-term resilience.

While the findings suggest large organisations are investing heavily in climate risk assessment, much of that analysis is not making its way into public disclosures.

Finity principal Sharanjit Paddam said the first reporting cycle demonstrated a strong commitment to meeting the new requirements but also highlighted inconsistencies in how companies approached disclosure.

"Reviewing these first reports has provided a real opportunity to understand how some of our largest corporations are interpreting and applying the detailed requirements of AASB S2," Paddam said.

"The analytical rigour is clearly there. What we expect to see develop over successive reporting cycles is greater confidence in translating that internal work into public disclosure," Paddam said.

The analysis found that 24 of the 26 entities reviewed voluntarily conducted climate scenario analysis, despite it not being explicitly required under the framework. Around 70% modelled three or more scenarios, exceeding the mandatory minimum of two.

However, while companies were undertaking increasingly sophisticated climate modelling internally, disclosure of the results remained limited. Most organisations published high-level quantitative assessments, with only a handful attempting to directly connect climate impacts to financial statements.

Finity's review also uncovered wide variations in the time horizons companies used to assess climate risks. Some organisations defined "long term" as little as five years, while others assessed impacts over 25 years or more, creating challenges for investors seeking to compare disclosures across sectors.

The divergence was particularly evident among resource companies, where reporting horizons ranged from five to 25 years despite operating within the same regulatory framework.

Transition plan disclosures also varied considerably. Some companies revised or scaled back emissions reduction commitments previously made through voluntary reporting channels, reflecting heightened scrutiny around target setting and greenwashing risks.

Paddam said organisations yet to enter the reporting regime should view climate disclosures as more than a compliance obligation.

"This is not a set and forget exercise, and Group 2 and Group 3 entities who treat it as a strategic planning tool rather than a compliance exercise will find it delivers value well beyond the report itself," Paddam said.

Under Australia's phased implementation timetable, Group 2 and Group 3 entities will begin reporting under the mandatory climate disclosures regime from 2027 and 2028 respectively.

The report, Societal Infrastructure Blueprint: A Roadmap for Pension Funds, argues retirement funds already generate significant social benefits beyond providing retirement incomes, but often fail to recognise, measure or communicate that value.

Developed by a working group comprising almost 20 pension fund leaders globally, the framework outlines how funds can strengthen their contribution to member wellbeing and broader economic resilience while remaining firmly anchored to their fiduciary duties.

The report arrives as pension systems face mounting pressure from aging populations, growing inequality and changing member expectations. According to the blueprint, the global population aged over 65 is expected to exceed 1.6 billion by 2050, while infrastructure investment gaps in areas such as housing, healthcare and education are forecast to reach US$15 trillion by 2040.

With pension funds collectively managing more than US$56 trillion in assets worldwide, the report positions the sector as uniquely placed to help address these challenged through its long-term investment horizon scale.

"Understanding how pension funds build social infrastructure is especially important now, as aging populations and rising inequality are starting to strain public systems, and evolving member expectations challenge existing pension models," Working Group co-plead Gareth Gibbins said.

"This Blueprint gives pension funds a practical, structured path to recognize that role, act on it, and measure it, without stepping outside their fiduciary mandate."

The framework is built around three stages. The first encourages funds to identify and communicate the broader benefits they already deliver, including reducing elder poverty, improving health outcomes and supporting social cohesion.

The second stage focuses on optimal initiatives that can deepen social impact, including investments in affordable housing, healthcare infrastructure and education alongside expanded member services such as financial literacy programs and wellness support.

The final stage centres on measuring outcomes through tools such as social return on investment and wellbeing valuation frameworks, enabling funds to quantify and report their broader social contribution.

The report argues stronger measurement and disclosure will improve transparency, strengthen member trust and help funds demonstrate their value to policymakers and stakeholders.

Drawing on case studies from Denmark, Singapore, Canada and Australia, the blueprint concludes social impact should not be viewed as an adjunct to pension fund activity, but as a natural extension of the sector's core purpose of delivering long term financial security and societal stability.

Munro said the move expands access to a strategy focused on companies positioned to benefit from the global decarbonisation trend.

The fund, which is available through NZX Wealth Technologies and Consilium Wrap, invests in a concentrated portfolio of global equities across four themes: clean energy, clean transportation, the circular economy and energy efficiency.

The strategy was initially launched as a wholesale fund in New Zealand in March 2025 through a partnership between GSFM and Munro Partners. Since launch, it has grown to NZ$71.82 million and delivered a return of 70.4% net of fees in the 13 months to 30 April 2026.

GSFM chief executive Damien McIntyre said the fund offers investors exposure to one of the most significant long term, structural shifts underway in global markets.

"As global capital markets continue to shift towards sustainability and thematic investing, the Fund will become increasingly relevant," McIntyre said.

"Having the support and seeding from KiwiSaver providers, Aurora Capital and SBS Wealth has strengthened our ability to deliver these products to New Zealand investors," he said.

The move comes as asset managers continue to develop products tied to energy transition and climate related investment opportunities, despite growing scrutiny around sustainable investing claims globally.

Munro Partners' Climate Leaders strategy seeks to identify companies expected to either enable or benefit from decarbonisation, reflecting a thematic approach that focuses on long term growth drivers rather than traditional sector allocations.

GSFM said demand from wholesale investors has supported the fund's growth since launch prompting the expansion into the retail market.

McIntyre said the firm was also assessing whether additional investment strategies could be introduced to address gaps in the New Zealand market.

"The GSFM team is reviewing its other existing strategies, as well as assessing new ones, to determine which will be suitable to fill in an investment gap for New Zealand investors," McIntyre said.

The fund is managed and issued by Adminis Funds Limited and represents the firm's first retail fund offering in New Zealand.

The Innovate RAP builds on the first one delivered in 2024 and is underpinned by partnerships with First Nations-led organisations, including First Nations Foundation.

"From our Reflect RAP, we learned more about First Nations cultures, built awareness across our organisation and established relationships with our industry partners," ART said.

In the next two years, the $370 billion super fund is aiming to deliver financial education designed for First Nations members, strengthen culturally informed member support and amplify First Nations voices through responsible investment stewardship,

It is also building a "culturally safe" and inclusive workplace, as it works towards a 2% First Nations workforce target.

The super fund noted that many of the Aboriginal and Torres Strait Islander members continue to face systemic barriers navigating the superannuation system, including the proof of identity, skills and knowledge in finance, usage of services, early access to super, and more.

ART chief investment officer Ian Patrick, who is also the sponsor of the plan, commented those are the gaps the super fund is trying to fill.

"It's about making sure we make a difference in their lives, in the communities that we serve and in making the system better overall for our members," Patrick said.

"Across our services and partnerships and the way we work, we're focused on improving financial outcomes for everyone and building long-term trust in the system. Our Innovate Reconciliation Action Plan is an important way that we can deploy our efforts to help deliver for our members."

Senior economist Benjamin Trevis and economist Marco Santaniello said output per capita which speaks to living standards would fall in most destination economies as productivity gains from improved labour market allocation would be lost.

The report highlighted the size of the hit would vary based on the working-age share of each country's migrant inflows.

"Output per capita falls by around 12% by 2060 in Spain, reflecting heavy reliance on working-age migrants, while there is a more modest decline of around 1% in the US as its inflows are more mixed in age composition," the report read.

Australia and Canada stood out as exceptions, with output per capita rising around 1% and 4% respectively.

"Both countries receive a high share of inflows that are largely outside the labour force; removing these inflows reduces population more than it reduces the workforce, so the capital stock is shared among a workforce that is only slightly smaller, lifting capital per worker and pushing output per capita above our baseline," the report read.

The report noted in the near-term, no migration would have an impact on demand as migrants are "first and foremost consumers".

"Removing future inflows to destination economies forgoes would-be migrant spending on housing, goods, and services, dampening aggregate demand and weighing on inflation in the early years of the scenario," the report read.

"The drag on demand is partly cushioned by the fact that, although earnings vary across the skill distribution, migrants typically earn below the host-country average and are concentrated in lower-earning sectors."

In the long-run, however, the productivity hit would compound the labour supply shock.

The report states the productivity impact would be seen through two channels: high-skilled migrants generating knowledge transfer and innovation spillovers and migrants at all skill levels who fill structural gaps and free domestic workers to move into more productive roles.

"Total factor productivity is smaller in the near term but builds over time, becoming a material drag from the 2030s onwards as the loss of knowledge transfer and labour market allocation gains compounds," the report read.

Origin countries would have a positive outcome in this scenario, particularly those that have historically seen large numbers of workers move abroad such as Pakistan, the Philippines, and parts of Eastern Europe as migrants stay back and lift aggregate output.

Output gains, however, are limited as the productivity channels are markedly weaker than in destination economies, where larger inflows and a higher concentration of high skilled migrants amplify the uplift.

The report noted ageing economies will face sharper fiscal challenges without migration as immigrants tend to arrive at prime working age, contributing more to taxes and social contributions than they receive in social protection, housing, health, and education spending.

The "zero migration" scenario is an extreme, the report said, and its value lies in quantifying the contribution that migration makes to long-run growth, against which actual outcomes and policy responses can be benchmarked.