Antinuclear

Australian news, and some related international items

Murray-Darling report shows public authorities must take climate change risk seriously

The Conversation, Arjuna Dibley, Graduate Fellow, Steyer-Taylor Center for Energy Policy and Finance, Stanford University, February 4, 2019  The tragic recent events on the Darling River, and the political and policy furore around them, have again highlighted the severe financial and environmental consequences of mismanaging climate risks. The Murray-Darling Royal Commission demonstrates how closely boards of public sector corporate bodies can be scrutinised for their management of these risks.

Public authorities must follow private companies and factor climate risk into their board decision-making. Royal Commissioner Brett Walker has delivered a damning indictment of the Murray Darling Basin Authority’s management of climate-related risks. His report argues that the authority’s senior management and board were “negligent” and fell short of acting with “reasonable care, skill and diligence”. For its part, the authority “rejects the assertion” that it “acted improperly or unlawfully in any way”.

The Royal Commission has also drawn attention to the potentially significant legal and reputational consequences for directors and organisations whose climate risk management is deemed to have fallen short of a rising bar.

It’s the public sector’s turn

Until recently, scrutiny of how effectively large and influential organisations are responding to climate risks has focused mostly on the private sector.

In Australia it is widely acknowledged among legal experts that private company directors’ duty of “due care and diligence” requires them to consider foreseeable climate risks that intersect with the interests of the company. Indeed, Australia’s companies regulator, ASIC, has called for directors to take a “probative and proactive” approach to these risks.

The recent focus on management of the Murray-Darling Basin again highlights the crucial role public sector corporations (or “public authorities” as we call them) also play in our overall responses to climate change – and the consequences when things go wrong……….https://theconversation.com/murray-darling-report-shows-public-authorities-must-take-climate-change-risk-seriously-110990

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February 4, 2019 - Posted by | AUSTRALIA - NATIONAL, climate change - global warming, politics

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