Developing strong sustainability reporting processes for voluntary and mandatory sustainability reporting.

Sustainability is becoming an increasingly pressing consideration for Australian businesses. This shift is driven by several factors: mandatory sustainability reporting is coming into force, the government has set emissions reduction targets, and entities are receiving increasing requests for sustainability-related data from investors, customers and creditors.

From 1 January 2025, mandatory sustainability reporting has been a requirement in Australia and is being phased in over the following three years based on entity size. Most mid-market entities will be required to prepare an annual sustainability report.

The sustainability report must be compliant with the new standard AASB S2 Climate-related Disclosures, and it will provide information to investors about climate-related risks and opportunities that could reasonably be expected to affect an entity’s cashflows, access to finance, or cost of capital over the short, medium, and long term.

What are the implications for finance teams?

Finance teams will be expected to understand and apply this new standard, and we can provide the specialist expertise to guide them through the process. We can offer support with the technical requirements of AASB S2, integrating climate-related information into financial reporting processes and co-ordinating across sustainability and finance teams which often have differing modus operandi.

As the reporting requirements become applicable for your entity, it is important that you receive the most up-to-date, technically accurate and practical support to give you confidence that your reporting meets the needs of primary users and is sufficiently documented for assurance providers.

Who is caught by Australian statutory sustainability reporting?

Recent legislative changes to the Corporations Act now require preparation of an annual sustainability report for entities meeting certain criteria

  • Entities that prepare annual reports under Chapter 2M of the Corporations Act; and

Either

  • Meet any two of three thresholds as shown in the table below; or
  • Are a registered corporation under the NGER Act, or an entity required to register under the NGER Act; or
  • Are a registered scheme, registrable superannuation entity, or retail corporate collective investment vehicle (CCIV), with consolidated assets in excess of the threshold shown in the table below.

NB - The criteria for entities in scope of the legislation is contained in section 292A of the Corporations Act. If you are not certain if your organisation is in scope of the legislation, please seek legal advice.

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Preparing your sustainability report

We have a team of specialists who understand the rapidly developing landscape of sustainability reporting and will work closely with you to navigate through the process of collating the right information, building appropriate processes and controls around the data required to support disclosures, and how to present the required information both in your report and in documentation for your auditors. 

We offer a range of services including:

  • Education and training on sustainability reporting requirements (Australia or internationally)
  • Support with the identification of climate-related and sustainability-related risks and opportunities in your business model and throughout your value chain
  • Support with identifying which information is material to disclose for climate-related risks and opportunities
  • Assessing your current capabilities against the requirements of a particular framework, or general best practices in voluntary reporting
  • Support with undertaking a climate scenario analysis
  • Support with undertaking quantification of anticipated financial effects
  • Support with developing your greenhouse gas (GHG) emissions inventory and subsequent transition planning
  • Assistance with the compilation of information necessary to prepare disclosures against a particular framework

We understand the importance of presenting clear information in your sustainability report, that is ready for assurance, relevant to investors and has best practice data controls and processes behind it.

Get in contact with our sustainability experts to learn more about how we can help you develop strategies, meet the standards, and produce rigorous reporting.

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Unpacking Australian Sustainability Reporting - What's really required? 

This guide unpacks the sustainability reporting requirements of the Corporations Act, the new standard AASB S2 Climate-related Disclosures, and highlights key considerations, frequently asked questions, and practical application issues encountered in preparing a Sustainability Report.

How we can support you

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    Businesses are increasingly being required to measure and disclose their greenhouse gas (GHG) emissions, whether due to upcoming mandatory reporting requirements or for other reasons such as grant applications, financing arrangements or tender requests.