ESG Reporting Standards
ESG reporting standards in Australia moved from voluntary frameworks to a statutory requirement. Entities meeting the sustainability reporting thresholds in the Corporations Act must prepare a sustainability report containing climate-related financial information under AASB S2.
Two points are worth being precise about, because a great deal of commentary is not.
Climate is currently the only component. The sustainability report is not yet a broad ESG report. Parliament may add other subjects over time, and it has not yet.
The obligation is threshold-based. It attaches to entities that meet the criteria in the legislation, not to every organisation using the term ESG in its marketing.
Smaller organisations are affected indirectly rather than directly, through customers who need value chain data and increasingly ask for it as a condition of continuing to supply.
ASIC administers the requirements. This is general information rather than legal advice, and obligations vary by state and territory.
See Sentrient’s GRC system and workplace compliance 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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