Mandatory climate-related disclosure reporting applies as soon as 2024 for large businesses, with smaller entities phased in over the following three years.

What we do know:

➡ the Australian Government will introduce standardised, internationally-aligned reporting requirements for businesses to make disclosures regarding governance, strategy, risk management, targets and metrics – including greenhouse gasses.
➡ The Australian Accounting Standards Board (AASB) is responsible for developing Australian climate disclosure standards that are likely to align to the requirements in IFRS S2 Climate-related Disclosures (ISSB Climate Standard).
➡ Even companies already voluntarily publishing a Taskforce for Climate-related Financial Disclosure (TCFD) aligned report will require additional metrics.

Things to consider:

• What will you publish? Consider featuring the disclosures in your annual report, or could it be time for a dedicated sustainability report?
• Start mapping now. Sustainability reporting is complex and nuanced – engage an expert sustainability analyst to review your reporting framework and preparedness.
•  Think public. Use this as an opportunity to communicate a compelling sustainability message to your customers, clients and employees that avoids greenwashing risk.
• Don’t reinvent the wheel. Look to Europe for examples of reporting as well as the International Sustainability Standards Board (ISSB) and FSB Task Force on Climate-related Financial Disclosures (TCFD).