In a landmark step, mandatory sustainability reporting in Australia begins on January 1, 2025, ushering in a new era of corporate accountability. Organisations will soon be required to assess and disclose their climate-related risks and opportunities.
If you’re a business leader, understanding these mandates is critical for compliance and positioning your company as a sustainability leader in a competitive market.
Key Highlights of the New Reporting Mandates
Who Must Comply?
The requirements apply to large entities meeting two of the following thresholds:
- Consolidated revenue of $500 million or more.
- Gross assets of $1 billion or more.
- 500 or more employees.
At this stage, SMEs are not required to comply with mandatory sustainability reporting. However, they may be indirectly impacted, particularly if they are part of the supply chains of larger businesses that must comply.
When Does Reporting Start?
Mandatory reporting applies to financial years starting on or after January 1, 2025. Businesses must act now to prepare for compliance.
What Must Be Disclosed?
Companies must produce a Sustainability Report aligned with the Australian Sustainability Reporting Standards (ASRS), which reflect international frameworks like IFRS S1 and IFRS S2. Disclosures include:
- Climate-related risks and opportunities.
- Carbon emissions (Scope 1 and 2).
- Other sustainability metrics such as energy use and waste management.
Who Oversees Compliance?
The Australian Securities and Investments Commission (ASIC) will administer and monitor compliance, adopting a proportional approach during the initial transition period.
Why This Matters for Australian Businesses
Compliance Is a Legal Requirement
Failure to comply could result in regulatory penalties and reputational damage. Early preparation is essential to avoid risk.
A Competitive Advantage
Mandatory reporting is an opportunity to build stakeholder trust by demonstrating a genuine commitment to sustainability.
Reliable Data Is Key
Accurate carbon accounting is critical to measure emissions, identify risks, and meet disclosure requirements effectively.
International Alignment
By adhering to global standards, Australian businesses can enhance credibility and attract investors on a global scale.
How Prime Financial Group Can Help
Navigating these new regulations can be complex, but you don’t have to do it alone. We specialise in carbon accounting and sustainability strategies tailored to your business.
Our services include:
- Managing the data reporting process
- One-hour feedback session with an ESG Consultant to understand your carbon footprint, impact and areas of opportunity for reduction
- An annual carbon report for your business
- Carbon-measured badges, according to GHG protocols, and collateral for communications and marketing
- Offsetting opportunities are available for an additional fee.
By partnering with us, your business can go beyond compliance to position itself as a leader in sustainability.
Take Action Today
With January 2025 fast approaching, the time to prepare is now. Here’s how to get started:
- Assess your readiness: Evaluate your current sustainability reporting practices.
- Invest in carbon accounting: Build a foundation of accurate, reliable data.
- Partner with experts: Work with us to simplify compliance and unlock sustainability opportunities.
Complete the form below or contact us today to learn how we can help your business navigate these mandates and thrive in the new era of sustainability reporting.
