As an update to our previous article on August 26, 2024 ‘ Australian Mandatory Sustainability Reporting Begins!' the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024 (Cth)(the Bill) was passed by Parliament on September 9, 2024, and positions Australia as a global leader in mandatory climate reporting.
This Bill establishes Australia's first climate-related financial disclosure regime, aligning with ISSB standards and setting a benchmark for international best practices. Entities subject to this regime will face new annual reporting requirements, including a Sustainability Report. This move is part of a broader trend, with countries like Brazil, Japan, Hong Kong, Canada, and the UK also planning to adopt similar IFRS-aligned standards soon.
What are the audit and assurance requirements?
Organizations affected by the mandatory reporting framework will need their sustainability reports externally audited to verify accuracy and credibility. The AUSB will gradually introduce assurance requirements from January 1, 2025, to June 30, 2030, with full audits expected starting from the entity’s fourth Sustainability Report.
Impact on SME’s/Supply Chains?
As noted in our previous articles, the mandatory directive on Scope 3 emissions disclosure puts significant pressure on businesses, including SMEs, to track and report key emissions data to their larger customers. Large entities are increasingly requiring their suppliers to provide accurate emissions data and demonstrate compliance with Australian legislation on workplace, gender, and ethnic diversity, as well as Indigenous engagement.
How can we help?
As an Australian software company specializing in ESG sustainability, we provide tailored solutions for SMEs and micro businesses. Our services not only help meet reporting requirements but also support tender and contract needs, enhancing access to capital and investment opportunities.
Please contact us today for support in navigating ESG and sustainability demands, from risk assessment to seizing commercial opportunities.
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