Australia’s Climate Risk Reporting to Boost Big Four Dominance

Australia’s mandatory climate risk reporting bill could drive smaller assurance firms out of the sector, further concentrating the dominance of the Big Four accounting firms, a senate inquiry has been told.

A Corporations Act provision requiring financial and climate statements be audited by the same person or firm would hand the Big Four — EY, PwC, KPMG and Deloitte — an advantage, GHD sustainability service leader Leon Olsen told the inquiry Tuesday.

As the group handles the vast majority of financial audits for Australia’s larger and more complex companies, the provision means they could get most climate-related work without ...