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Australia Corporate Governance Duties

Australia Corporate Governance Duties: Require directors to consider climate and sustainability risks where financially material

Maílis Carrilho
Written by Maílis Carrilho
Updated on February 4th, 2026

Summary

Directors’ duties under corporate law require consideration of foreseeable and material risks, including climate-related risks, creating personal and corporate compliance exposure.

Details

Jurisdictions
  • Australia
Mandatory for

Mandatory for company directors.

Deep dive

1 min read
Updated Feb 4, 2026

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What’s Required

Risk identification, board oversight, decision documentation, and disclosure where material.

Important Deadlines

Ongoing obligation tied to board decision-making cycles.

Current Status

Directors’ duties are in force and actively litigated.

Penalties for Non-Compliance

Civil liability, disqualification, and reputational damage.

Examples of Known Violations

  • Failure to consider climate risk in major investment decisions.

Resources


Maílis Carrilho
Added by:
Maílis Carrilho
Sustainability Research Analyst
Maílis Carrilho is a Sustainability Research Analyst (Intern) at Net Zero Compare, contributing research and analysis on climate tech, carbon policies, and sustainable solutions. She supports the team in developing fact-based content and insights to help companies and readers navigate the evolving sustainability landscape.
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Added on Feb 3, 2026 by Maílis Carrilho · Updated on Feb 4, 2026