Businesses will have to start preparing reports on vulnerability to and strategies for a changing climate
From 1 January 2025, many large Australian businesses and financial institutions will need to prepare annual sustainability reports containing mandatory climate-related financial disclosures, following the passage of Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024 (Cth) through Parliament.
The company’s climate statements must cover climate-related financial risks and opportunities; metrics and targets relating to climate such as greenhouse gas emissions; and a strategy or risk management in relation to these. The company must also disclose information about its climate resistance based on varying temperature increases.
Large entities and their controlled entities that meet two of the following criteria will need to prepare the annual sustainability report from this month: consolidated revenue of $500 million or more; EOFY consolidated gross assets of $1 billion or more; EOFY employees of 500 or more.
From July 1, 2026 the reporting period will start for entities with a consolidated revenue of $200 million or more, EOFY gross assets of $500 million or more, and/or 250 or more EOFY employees.
From July 1, 2027 the reporting period will start for consolidated revenue of $50 million or more, EOFY consolidated gross assets of $25 million or more, and/or EOFY employees of 100 employees or more.
For more info, visit: https://asic.gov.au/regulatory-resources/sustainability-reporting/