Significant developments in climate law have prompted a review of guidance on how to meet the evolving duty on solicitors to advise clients of climate related risks.
President of the Law Society of NSW Jennifer Ball said the rapid pace of change in climate related regulation, and the introduction of new Government programs, made it necessary to provide an update to the legal profession.
"My predecessor as President, Brett McGrath, launched the Law Society's Climate Change – Practitioner guidance last February. In March, legislation creating a mandatory climate reporting regime was introduced into the Commonwealth Parliament," Ms Ball said.
"That development, described by ASIC Chair Joe Longo as 'the biggest change to corporate reporting in a generation', is just one of several that prompted the Law Society's Climate Change Working Group to update the Advising on climate risk annexure."
New sections cover the Sustainable Finance Roadmap, Capacity Investment Scheme Program, vehicle efficiency standards, Future Made in Australia Reforms, and the Guarantee of Origin Scheme.
Ms Ball said the evolving duty to meaningfully address climate risks and associated issues in their advice to clients springs from solicitors' legislated and common law ethical duties. Most clients, and nearly all areas of legal practice, could be affected.
"A new section on all real property transactions could affect the many solicitors who undertake conveyancing work and the home buyers or sellers whom they advise. Climate related issues involved in real property transactions can include advising on bushfire or flood risk and the affordability, or even availability, of insurance, which could affect the ability to obtain mortgage finance," Ms Ball said.
"The updated Corporate Law section includes discussion of the new reporting regime, which will eventually apply to almost all enterprises with two of the following three criteria, more than 100 employees, $25 million in assets, or $50 million in annual revenue."
Ms Ball thanked the Climate Change Working Group for their continued commitment to providing updated information on this important issue. The Law Society's Climate Change Guidance builds on material from the climate change publications of the Law Council of Australia and the Law Society of England and Wales.
The updated Annexure B: Climate Change Guidance – Advising on climate risk
