Specialty Webinar - Australian Mandatory Climate Reporting: What to do if your business doesn't make $500M in annual revenue

Session 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.

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If you have any questions about the session, please email us at support@netnada.com.au