Parliament has now passed legislation mandating climate-related disclosures and businesses must have an understanding of what the legislation and Australian sustainability reporting standards actually require for compliance.

Even for entities that have previously done some form of climate-related or sustainability reporting, preparing for reporting in line with the requirements is complex, and it takes time to implement the appropriate processes and controls.

In addition, gathering the necessary data, and/or developing the internal capabilities required to complete the reporting in line with the requirements needs to be developed, which requires a proactive, and structured approach to preparing for reporting.

This guide unpacks the requirements of the legislation, the new standard AASB S2 Climate-related Disclosures, and highlights key considerations, frequently asked questions, and practical application issues encountered in preparing a Sustainability Report. 

This guide is structured as follows:

  • Section 1 is focused on the legislative requirements of sustainability reporting under the Corporations Act. This includes explaining the interaction of the legislation, the sustainability reporting standard issued by the AASB, and the sustainability assurance standards to be issued by the AUASB.
  • Section 2 is focused on the disclosure requirements of the new standard AASB S2 Climate-related Disclosures. The guidance contains an overview of the disclosure requirements of each of the four pillars of disclosure: Governance, Strategy, Risk Management, and Metrics & Targets. It also includes an explanation of the Australian specific Appendix D to AASB S2, which contains general requirements for the disclosure of climate-related financial information. Accompanying each section are:
    • visual aids for each disclosure pillar;
    • a list of the main disclosures; and
    • questions to consider in preparation for reporting.
  • Section 3 outlines suggested steps to prepare for sustainability reporting, using an illustrative example company.

**Terms & Conditions: This guidebook is subject to change and will be updated to reflect new legislation and associated disclosure requirements. Please refer back to this page to ensure you have the most recent version. This guide book was last updated on Tuesday 17 September 2024. 

Thank you for your interest. Click the button below to access this report.

Access Report

Unpacking Australian Sustainability Reporting webinar

Following the Senate passing legislation to mandate climate-related disclosures, and the AASB issuing the new sustainability standard AASB S2 Climate-related Disclosures, there’s confusion in the market as to what the climate-related disclosure legislation and sustainability standards actually require for compliance.

In this webinar, Andrew Rigele, Owen Carew and Samantha Sing Key discuss: 

  • The legislative requirements for climate-related financial disclosures
  • The requirements of AASB S2 Climate-related Disclosures
  • Common myths and misunderstandings in relation to climate-related reporting
  • Potential impact on the annual report and financial statements

Watch now

For more information, please contact:

Andrew Rigele
Andrew Rigele
National Managing Partner – ESG
Sydney
View full profile
John Askham
John Askham
Partner
Sydney
View full profile
Samantha Sing Key
Samantha Sing Key
Director
Sydney
View full profile

    Related content

    View more
    Climate-related disclosures bill passes Senate
    Insight Climate-related disclosures bill passes Senate
    On 22 August 2024, the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024 (the Bill) passed the Senate with amendments. From there, it will return to the House of Representatives to approve the amendments, which is expected to go ahead.
    John Askham
    Samantha Sing Key
    | 4 min read | 26 Aug 2024
    Looking ahead to the final Australian Sustainability Reporting Standards
    Sustainability Reporting Alert | SRA 2024-3 Looking ahead to the final Australian Sustainability Reporting Standards
    Following recent decisions made at the Australian Accounting Standards Board (AASB) meetings, we now have a very clear sense of what the final Australian Sustainability Reporting Standards (ASRS) will look like.
    Owen Carew
    Samantha Sing Key
    | 10 min read | 26 Jul 2024
    Navigating sustainability initiatives in an era of greenwashing
    Insight Navigating sustainability initiatives in an era of greenwashing
    Businesses are increasingly recognising the importance of sustainable practices to safeguard our planet for future generations. However, as the demand for sustainable products and services grow, so does the prevalence of greenwashing – a deceptive practice where businesses falsely claim to be environmentally friendly.
    Michaela Pogson
    Paul Carbone
    | 4 min read | 04 Jul 2024
      View more