Regulatory update – Australia climate reporting

Large companies in Australia will be required to make climate-related financial disclosures in their annual report for financial years starting after January 1, 2025.

The Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024 passed on September 9 introduces mandatory climate reporting for entities already required to prepare annual financial reports and meeting two out of three of the following criteria:

  • A consolidated revenue for fiscal year of AU$500 million or more
  • Consolidated gross assets at end of fiscal year of AU$1 billion or more
  • 500 or more full-time equivalent (FTE) employees at end of the fiscal year

 

The new Sustainability Report must include:

  • A climate statement for the relevant year;
  • Any statement prescribed by the Regulations for the relevant year; and
  • The directors’ declaration as to the compliance of such statements with the Corporations Act and relevant sustainability standards.

 

The climate statement should include information on governance, strategy, risk management, emissions, financial effects as well as metrics and targets.

Mandatory climate reporting will be expanded to additional entity categories over the next two years.

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