Note: If you plan to use or share any of the content in the presentation, please credit NetNada.
Webinar Summary
- Introduction to Mandatory Reporting:
- New legislation for climate-related financial disclosures has been implemented, effective from January 1, 2025.
- All entities must comply with Australian Sustainability Reporting Standards (ASRS).
- Key Standards:
- AASB S2 is the mandatory standard for climate-related disclosures.
- AASB S1 is optional and covers additional sustainability-related risks.
- Reporting Requirements:
- Sustainability reports must include disclosures on governance, strategy, risk management, and metrics and targets.
- Companies need to conduct scenario analysis, including one scenario aligned with a 1.5-degree warming target and another that exceeds 2 degrees.
- Disclosure Process:
- Reports must be submitted to ASIC along with other annual reports.
- Group 1 companies report starting in 2025, Group 2 in 2026, and Group 3 in 2027.
- Importance of Data Ownership:
- Organizations must ensure internal ownership of data collection and reporting processes.
- This includes engaging boards and senior leadership in sustainability governance.
- Challenges and Opportunities:
- Companies may face challenges transitioning to new reporting standards but should view this as an opportunity to enhance their sustainability practices.
- Cross-functional collaboration is essential for successful implementation.
- Materiality Assessments:
- Companies must assess what is material to their operations and incorporate it into their reporting.
- This includes identifying key risks and opportunities related to climate impacts on their business model.
- Compliance Costs:
- Non-compliance could result in significant fines, with potential penalties up to AU$10 million for companies and AU$1 million for individuals.
- Ongoing Support:
- NetNada is committed to assisting organizations in navigating these new requirements through resources and expert guidance.
- Attendees were encouraged to reach out for help in preparing for the upcoming reporting obligations.
If you have any questions, please email us at support@netnada.com.au.
