Mandatory Climate Related Disclosure Legislation
February 2024
UPDATE: Australia introduces the legislation for mandatory climate related financial disclosure
The Treasurer has proposed legislation to establish a new climate-related financial disclosure system in Australia, slated to begin on January 1, 2025. Initially targeting major corporations, the implementation will be gradual.
The legislation emphasises broad reporting standards, with specific definitions and Scope 3 emissions guidelines to be integrated into the Australian Sustainability Reporting Standards.
Further details:
Reporting criteria will encompass a fresh 'sustainability report' containing climate statements and directors' affirmations.
Compliance requirements will be phased in according to the size and type of entity, starting from January 1, 2025.
Transitional provisions within the bill offer limited immunity for the initial three reporting years.
We anticipate significant changes with the introduction of this legislation, which will impact how businesses approach climate-related financial disclosures. As we move towards a more sustainable future, it's crucial to stay informed and adapt our practices accordingly.
Key documents from Treasury:
Climate-related financial disclosure: exposure draft legislation - all links about the most recent consultation process ending in February 2024
As we move towards a more sustainable future, it's crucial to stay informed and adapt our practices accordingly.