Australia’s new climate reporting mandates require businesses to disclose their emissions and climate risks starting in 2025. Find out what this means for your company and how you can prepare for the transition.
Australia’s House of Representatives has passed a landmark bill that introduces mandatory climate-related reporting requirements for large and medium-sized companies. This legislation is set to increase transparency around corporate exposure to climate risks, opportunities, and greenhouse gas emissions across the value chain. From 2025, the largest companies will be required to comply.
This new law, which follows Senate approval in August, represents the final major step towards making climate reporting a legal requirement. But what does this mean for businesses in Australia? Here’s everything you need to know.
The climate reporting rules will be phased in, giving companies time to prepare. Initial reporting obligations will begin in January 2025 for large businesses—those with over 500 employees, more than AUD 500 million in revenue, or assets exceeding AUD 1 billion. These companies will be required to disclose:
Medium-sized companies will have until July 2026 to start reporting, while smaller companies (those with over 100 employees or significant revenue/assets) will begin one year later.
Scope 3 emissions are particularly significant because they encompass indirect emissions generated throughout a company’s value chain, from suppliers to product end-use. Although these emissions can be challenging to measure, they often represent the largest portion of a company’s carbon footprint. Recognising this, the Australian government has provided an additional year for businesses to start reporting on Scope 3 emissions.
To ease the transition, companies will also benefit from a three-year grace period, protecting them from litigation concerning Scope 3 reporting inaccuracies.
In tandem with the new climate reporting requirements, Australia has also established a Net Zero Economy Authority. This authority will guide the nation’s economic transformation towards net-zero emissions, helping industries and workers prepare for the shift to cleaner energy sources. The key roles of the authority include:
The Net Zero Economy Authority will play a critical role in helping Australia meet its climate goals, which include reducing emissions by 43% by 2030 and achieving net zero by 2050.
For Australian companies, the new climate reporting legislation brings several implications:
With the Australian Accounting Standards Board (AASB) set to finalise the climate disclosure standards shortly, businesses should begin preparing now for the 2025 rollout. Evaluating current emissions data, identifying potential climate risks, and putting systems in place for tracking and reporting will be essential steps.
While the new rules may seem challenging, they offer companies an opportunity to demonstrate their commitment to sustainability. By embracing these changes, Australian businesses can position themselves for success in a world where climate action is not just a necessity but a key driver of future competitiveness.
Zevero is a carbon management platform that empowers organisations to measure, reduce, and report their emissions across Scope 1, 2, and 3. Our AI-driven technology automates data collection and delivers carbon emission calculations with granular accuracy, ensuring compliance with global reporting frameworks.
Supported by sustainability experts, Zevero transforms data into actionable insights, helping businesses identify emission hotspots, simplify Scope 3 reporting, and develop decarbonisation strategies that drive progress toward climate goals and strengthen their appeal to climate-conscious stakeholders and investors. Want to find out more, get in touch today.
