ESG Environmental Standards
ESG environmental standards in Australia have moved from voluntary frameworks to a legal requirement. Entities meeting the sustainability reporting thresholds in the Corporations Act must prepare a sustainability report containing climate-related financial information under AASB S2.
Climate is currently the only component of that report, and Parliament may add others over time.
The part smaller organisations underestimate is reach. The direct obligation falls on larger entities. The practical effect travels much further, because those entities need emissions data from across their value chain.
So suppliers get asked for figures they have never collected, at short notice, as a condition of continuing to supply. Energy use, waste, transport and sometimes their own suppliers’ numbers.
If you supply a large customer or a government body, that request is coming whether or not you report yourself. ASIC administers the requirements and publishes ASIC guidance for small business. This is general information rather than legal advice.
See Sentrient’s sustainable development goals course and GRC system.
The Australian Sustainability Standards
Whether your organisation is embarking on its ESG journey or is already well-versed in sustainable practices, it is important to consider the upcoming mandatory reporting on Sustainability Standards. This development has significant implications for various aspects of your business, including governance, processes, and personnel. ESG reporting responsibilities will be distributed among different functions within the […]
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