The Australian Parliament recently passed the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024, which mandates sustainability reporting adhering to the Australian Accounting Standards Board (AASB). This bill comes as the next step of the Australian government’s strategy for achieving its net-zero target by 2050. The new proposed legislation introduces climate-related reporting requirements broadly in line with the recently released standards by the IFRS Foundation’s International Sustainability Standards Board (ISSB), including disclosures on climate-related risks and opportunities and greenhouse gas emissions across the value chain.

Under the new legislation, organisations that meet two of the following three criteria are required to begin reporting in January 2025.

1. 500 or more employees
2. $500 million or more in revenue
3. $1 billion or more in consolidated gross assets

Smaller organisations will be required to follow suit in 2026 and 2027. Please refer to Appendix A for specific reporting criteria.  

What does mandatory disclosure look like?

A Sustainability Report is to be embedded within your company’s Annual Report, including a climate change statement for the reporting year detailing:

• Material climate related financial risks and opportunities
• Metrics or targets related to Scope 1, 2 and 3 Emissions
• Governance or risk management processes, controls and procedures
• Notes to the climate statement
• Any statements required by legislative instrument
• A directors’ declaration regarding compliance with the statement

How can ISN help?

ISN is paving the way for organisations to capture ESG data from their respective value chains. Our suite of services includes multiple levels of due diligence such as questionnaires, documentation reviews of written programs, procedures and policies, and ESG based interviews with vendors’ management teams. These tools empower our Hiring Clients to capture supply chain ESG Key Performance Indicators and identify areas of risk.

Interested in learning more?

ISN is hosting a 30-minute webinar on the new mandatory climate disclosure law on Wednesday 13, November (AEST). Register now to secure spot, there is no fee to attend.

Or contact your ISN representative today to schedule a meeting with our ESG team.

Appendix A: Climate Disclosure Reporting Requirements