b'To create meaningful and effective targets, organisations must also develop a strategy and implementation plan supported by an robust evidence base.Joshua Martin is a Director of Foresight and one of Australias leading climate change Joshua Martinexperts. Prior to Foresight he was the Oceania leader of EYs Climate Change servicesA GROWING MOVEMENT OF CLIMATE AWARENESS AND COMMITMENT There has been a marked increase in the uptake of decarbonization commitments, particularly net zero commitments. There are three factors driving this uptake, growing pressure from stakeholders including customers and investors, increasing regulator scrutiny and action, and a growing threat of legal action as addressing the risks of climate change is not recognized as falling within directorGlobal Compact, World Resources Institute, and duty of care and diligence. In recent years. TheWWF. It draws on the vast resources and work Australian Securities and Investment Commissionsundertaken by these organisations paving the (ASIC) has ear-marked climate change as the newway for a structured and consistent approach to frontier of corporate governance and steppedemissions reduction target setting.up its action on greenwashing. At the same timeIn late 2021, the SBTi introduced the net zero a series of legal opinions commissioned by theStandard, enabling companies to develop Centre for Policy Development have warmed ofcomprehensive net zero strategies. This standard the legal threats to Director that fail to addressallows businesses to establish both long-term climate change. A new supplementary opinionnet zero targets and shorter-term interim targets. by Noel Hutley SC and Sebastian Hartford DavisTo create meaningful and effective targets, provides an update on the duty of directors toorganisations must also develop a strategy and consider, disclose and respond to climate-relatedimplementation plan supported by an robust risks in light of recent developments. In particular,evidence base. This evidence-base should clearly the authors flag that greenwashing may exposeshow how emissions reductions will be achieved both individual directors and companies to the riskand financed, emphasising the importance of of litigation. What is clear is that business leadersconcrete and actionable plans.must address climate change but at the same time they must make sure they navigate a landscape thatCOUNTING CARBON IS A KEY is technical and complex without overstepping that may have drastic consequences. FOUNDATION FOR COMMITMENT AND ACTIONA ROBUST FRAMEWORK BECOMINGGreenhouse gas accounting is the foundation on THE NEW STANDARD FOR BUSINESSwhich firms understand their the most materialsources of emissions. The carbon footprint is The Science Based targets initiative (SBTi) providesultimately the information on which firms use to a robust framework for setting targets that arestart developing a strategic response to climate aligned with the science of climate change. SBTi ischange. It is used to establish an emissions baseline a collaboration between CDP, the United Nationsand to monitor progress towards targets. Firms 23'