Australian lawmakers recently voted to pass mandatory climate reporting in line with the country’s sustainability roadmap. The disclosures will follow the Australian Sustainability Reporting Standards (ASRS), which align closely with the ISSB’s IFRS standards. ESG Today wrote about the new law’s passage stating:
“The new climate disclosure legislation was introduced in January 2024 by Australian Treasurer Jim Chalmers, creating climate-related reporting requirements broadly in line with the recently-released standards by the IFRS Foundation’s International Sustainability Standards Board (ISSB). The Australian Accounting Standards Board (AASB) is currently in the process of developing the internationally-aligned climate disclosure standards for Australian companies, which are expected to be issued shortly, and the Australian Auditing and Assurance Board (AUASB) is developing assurance standards for climate disclosures in late 2024.”
The first reporting requirements under the new law take effect in 2025 and will only apply to companies required to file financial reports with the Australian Securities & Investment Commission (ASIC) under Chapter 2M of the Corporations Act 2001. Additionally, the law initially only applies to large companies with over 500 employees and revenues over $500 million or assets totaling over $1 billion. Large asset owners will also be subject to reporting if they have more than $5 billion in assets. The phased approach requires medium-sized companies to begin reporting by July 2026, with small companies starting in 2027. Australia’s new law brings mandatory climate reporting to another global economy as the IFRS standards continue to proliferate globally.
Our members can learn more about disclosure regulations here.
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