Invest
Student files lawsuit over government bonds
A 23-year-old student has filed a lawsuit against the Australian government after alleging that it failed to disclose climate change-related risks to investors in the country’s sovereign bonds.
Student files lawsuit over government bonds
A 23-year-old student has filed a lawsuit against the Australian government after alleging that it failed to disclose climate change-related risks to investors in the country’s sovereign bonds.
According to the litigation filed on Wednesday, Kathleen O’Donnell claims investors who buy Australian government bonds should be made aware of the risks the country faces due to climate change, which could put the repayment of the bond at risk.
The claim also alleges that the nation’s economy and reputation in international financial markets will be significantly affected by climate change and how the government responds.
This could lead to bonds facing material risk from climate change, meaning investors should have the information disclosed to them.
By failing to disclose climate change risks to investors, the lawsuit alleged that the Commonwealth of Australia has breached its duty of disclosure and could be misleading or deceiving investors.
The claim follows a summer where Australia had its most intense bushfires for four months, which killed 33 people and burnt through over 12.5 minion hectares.
The claim seeks declaration that the Commonwealth breached the law, as well as an injunction from the Federal Court to prevent further promotion of bonds without informing investors about climate change risks.
Ms O’Donnell owns government bonds that mature in 2050, by which time, should the government fail to enact effective policies, the impacts of climate change are expected to have taken hold.
Australia has more than $600 billion of sovereign bonds on issue, which have been rated as AAA by the three major ratings agencies.
RELATED ARTICLES
About the author
About the author
Bonds
Institutional investors shift towards bonds amid market volatility
Institutional investors moderated their risk appetite in April, leading to a surge in demand for the US dollar and a retreat from riskier assets, according to the latest State Street Institutional ...Read more
Bonds
Boost in confidence: investor sentiment balances out in November
In the ever-evolving dance of market sentiment, institutional investors recently took a step towards optimism, as revealed by State Street Global Markets in their November update of the State Street ...Read more
Bonds
Investors take note: review portfolios as global bond surge mirrors 2008 crisis
Investors are being urged to scrutinise their investment portfolios as the global bond market experiences a rally not seen since the 2008 financial crisis. Read more
Bonds
Overstretched US dollar sets the stage for a financial correction in December
As the US bond market sees a robust rally, the financial landscape braces for an impending correction. Ipek Ozkardeskaya, Senior Analyst at Swissquote Bank, sheds light on the current economic ...Read more
Bonds
Sustainable bonds tipped to exceed US$1.5tn in 2022
The sustainable bond market is forecast to grow while overall bond issuance stagnates. Read more
Bonds
Corporate bond market review makes 12 recommendations to enhance investment
Twelve recommendations have been made to support the development of a more active corporate bond market in Australia. Read more
Bonds
Common mistakes in buying bonds that investors should avoid
The bond market is considered as a safe haven for Aussie investors and it’s easy to see why. Read more
Bonds
Bonds in the ‘new normal’ – navigating a recession
Dampening downside risk during a global economic downturn requires active management and informed decisions, writes Justin Tyler. Read more
Bonds
Institutional investors shift towards bonds amid market volatility
Institutional investors moderated their risk appetite in April, leading to a surge in demand for the US dollar and a retreat from riskier assets, according to the latest State Street Institutional ...Read more
Bonds
Boost in confidence: investor sentiment balances out in November
In the ever-evolving dance of market sentiment, institutional investors recently took a step towards optimism, as revealed by State Street Global Markets in their November update of the State Street ...Read more
Bonds
Investors take note: review portfolios as global bond surge mirrors 2008 crisis
Investors are being urged to scrutinise their investment portfolios as the global bond market experiences a rally not seen since the 2008 financial crisis. Read more
Bonds
Overstretched US dollar sets the stage for a financial correction in December
As the US bond market sees a robust rally, the financial landscape braces for an impending correction. Ipek Ozkardeskaya, Senior Analyst at Swissquote Bank, sheds light on the current economic ...Read more
Bonds
Sustainable bonds tipped to exceed US$1.5tn in 2022
The sustainable bond market is forecast to grow while overall bond issuance stagnates. Read more
Bonds
Corporate bond market review makes 12 recommendations to enhance investment
Twelve recommendations have been made to support the development of a more active corporate bond market in Australia. Read more
Bonds
Common mistakes in buying bonds that investors should avoid
The bond market is considered as a safe haven for Aussie investors and it’s easy to see why. Read more
Bonds
Bonds in the ‘new normal’ – navigating a recession
Dampening downside risk during a global economic downturn requires active management and informed decisions, writes Justin Tyler. Read more
