Climate-related risks include those from potential acute or chronic natural disasters, change in climate patterns and the related technology, market, legal and changes in government policies risks. The ASIC has required companies to disclose their management of climate risks in their operational and financial reports. As Part of Principle 7.4, the ASX recommended publicly listed companies to provide relevant disclosures based on the Task Force on Climate-related Financial Disclosures (TCFD) framework.

Read

(i) 'Corporate Reporting: Climate Change Information and the 2021 Reporting Cycle by IFAC 7 September 2021

https://d2l.deakin.edu.au/content/enforced/1316732-MAA310_TRI-1_2023/IFAC%20Climate%20Change%20Statement%20September%202021.pdf?_&d2lSessionVal=jIQGP4rZYC3hlQBUybenHjwg3&ou=1316732

(ii) Everyone was watching': BlackRock is showing its hand on coal by Nick O'Malley

https://www.smh.com.au/environment/climate-change/everyone-was-watching-blackrock-is-showing-its-hand-on-coal-20200605-p54zrx.html

Answer the following question:

1. Discuss, taking an Institutional theory lens, why climate-change-related risk disclosures matter.