Simplifying the Mandatory Reporting Requirements: What You Need to Know

With Australia’s new mandatory sustainability reporting standards taking effect, many businesses are feeling uncertain about what is required and how to prepare. 

These changes aim to provide greater transparency on climate-related risks and opportunities while aligning businesses with global sustainability practices. 

This short article aims to break down the requirements and timelines, demystify what needs to be reported, and provide a basic roadmap for preparation.

If you want a comprehensive guide on how to prepare your business for mandatory reporting, download this free resource.

Eligibility Criteria: Who Must Report?

The Mandatory reporting legislation officially begins on 1 January 2025. This law applies to entities classified into three groups based on specific thresholds. Here's an overview of who needs to report:

Reporting Timelines and Requirements

Each group has a staggered start date and a clear timeline for when the first report is due. The table below clarifies these timelines and what entities are required to report:

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What You’ll Be Reporting

All groups must disclose information across four key areas:

1. Governance: Who manages climate-related risks and how decisions are made.
2. Strategy: The impact of climate risks and opportunities on the business model and resilience to future dual-scenarios (e.g., 1.5°C and >2°C warming scenarios).
3. Risk Management: How climate-related risks are identified, assessed, and managed.
4. Metrics & Targets: Including:some text
   • Scope 1 & 2 GHG emissions (Year 1).
   • Scope 3 GHG emissions (Year 2).
   • Progress against reduction targets and other relevant metrics.

Preparation Strategies for Compliance

To ensure compliance and reduce stress, businesses should adopt a phased preparation strategy. Here's how to prepare:

Demystifying the Process

While these new requirements might seem daunting, they are an opportunity to align with global best practices and position your business as a leader in sustainability. 

By starting early, engaging stakeholders, and leveraging available resources, businesses can transition smoothly into this new era of mandatory reporting.

The key takeaway is that preparation is your best defence against uncertainty. By following the outlined steps and breaking the process into manageable phases, organisations can confidently meet their reporting obligations and contribute to a sustainable future.

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