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Home » Australia’s Mandatory Climate-Related Disclosure 2025 | Reporting

What’s being mandated

The Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024 (Cth) was passed 9 Sept 2024 and received Royal Assent 17 Sept 2024, introducing mandatory climate-related financial disclosure by large companies under the Corporations Act 2001. BDO Australia+2Greenberg Traurig+2

From 1 January 2025 (for the largest cohort) the regime kicks in: companies have to prepare annual sustainability reports as part of their financial reporting under Chapter 2M of the Corporations Act. ASIC+2BDO Australia+2

The disclosures required are aligned with the four pillars of the Task Force on Climate related Financial Disclosures (TCFD) — governance; strategy; risk management; metrics & targets. PwC+1

Emissions disclosure: Scope 1 and Scope 2 emissions (location-based) must be disclosed from year one for in-scope entities. Disclosure of material Scope 3 emissions will be required from year two. PwC+2Emission Statement+2

Who must report

Entities required to prepare audited financial reports under Chapter 2M of the Corporations Act (this includes listed companies, most unlisted large companies, financial institutions, registered schemes etc). PwC+1

In-scope size thresholds for the first group (Group 1) as of 1 Jan 2025: meet two of three criteria:
* Consolidated revenue of ≥ A$500 m
* Consolidated gross assets of ≥ A$1 bn
* Employees (FTEs) of ≥ 500
Additionally, those already reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER) regime are captured. ASIC+1

Later phases (Group 2, Group 3) bring in smaller thresholds (e.g., revenue A$200m+, assets A$500m+, employees 250+ for Group 2 from 1 July 2026) and even smaller from 1 July 2027. PwC+1

What to disclose

Governance: how the board and management oversee climate-related risks & opportunities. PwC+1

Strategy: material climate-related risks and opportunities for the business model and value chain; how climate change may impact financial performance; scenario analysis including at least two future temperature-path scenarios (one aligned with <1.5 °C, and one “well above 2 °C”) – in the Australian standard. PwC

Risk management: how the entity identifies, assesses, and manages climate-related risks and opportunities across the business and value chain. Climateworks Centre

Metrics & targets: disclosure of Scope 1 & 2 emissions from year one; Scope 3 (if material) from year two; information on performance against emissions targets; cross-industry metrics required regardless of whether organisation currently monitors them. PwC+1

Assurance

The standards envisage assurance requirements: in first year, limited assurance over Scope 1 & 2 emissions, governance and selected parts of strategy disclosures. PwC+1

Why this matters

The regulator Australian Securities & Investments Commission (ASIC) has flagged this as “the biggest change to corporate reporting in a generation”. AICD AICD

It aligns Australia with global momentum toward transparency on emissions and climate risk. Climateworks Centre+1

Key tips for companies

Start early: Many businesses may not yet have infrastructure, processes, and data systems in place to meet these disclosure requirements. ASIC+1

Map your value chain: Scope 3 emissions are often the hardest, but importantly many are material and will need disclosure. EY

Integrate climate risk into corporate strategy and governance—not just as a sustainability add-on.

Understand your size-threshold and timing (which ‘group’ you fall into).

Prepare for assurance: data integrity, controls, documentation.

Leverage voluntary frameworks (e.g., TCFD, International Sustainability Standards Board (ISSB) standards) as a basis for compliance. Climateworks Centre

Global Landscape – Brief Overview

Many jurisdictions now require or are moving to require corporate climate-/emissions disclosures. iatp.org+1

Example: In the UK, under the Streamlined Energy and Carbon Reporting (SECR) Regulations and related guidance, large quoted companies (and some unquoted) must publicly report their energy use & GHG emissions. GOV.UK+1

Many regimes emphasise alignment with TCFD, and use the GHG Protocol Corporate Standard for emissions measurement. KPMG+1

Why this is important for your business

Complying is now a legal obligation (not just voluntary) for many larger companies in Australia (and soon globally).

Disclosure of emissions helps management and investors understand climate-related risk (physical + transition) and opportunities. World Resources Institute

Non-compliance may result in regulatory scrutiny, reputational risk, and potential financial impacts (e.g., investor decisions, cost of capital).

Early preparation provides competitive advantage (better data, stronger strategy, credibility).

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Global Landscape – Brief Overview

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What’s being mandated

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What to disclose

Assurance

Why this matters

Key tips for companies

Global Landscape – Brief Overview

Why this is important for your business

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