ESG Regulation in Australia: The bold move to begin Mandatory Climate Reporting in 2025
🦘🌞 Attention all ESG enthusiasts & Australia lovers! 🌞
Let's dive into 3 fun facts that'll make you say, "Mate, I didn't know that!".
Here's how Australia is leading the charge in ESG regulation....
1. 🌊 "Riding the Sustainability Wave"
Forget what you've heard, Australia's not just surfing, they're riding a wave of sustainability with their new climate reporting laws! 🌊
We've already spotted over 1,300 mandatory ESG reporting regulations worldwide. Welcome to Australia! 🌊🌍
2. 🐨 "Hopping to Net Zero"
While kangaroos hop across the Outback, Aussie companies are hopping onto the ESG bandwagon! 🐨🚀
They're aiming for net zero emissions by 2050, and mandatory climate reporting starts in 2025! 📈🌍
Here’s the link to the relevant announcement from down-under: Australia Passes Law to Begin Mandatory Climate Reporting in 2025 - ESG Today
It's not just about hopping on your ESG auditors, it's about bringing global supply chains onboard for a continuous improvement party! 🎉🌍
3. 🍞 "Vegemite & Value Chains"
Just like Vegemite is an Aussie staple, climate-related disclosures are becoming a staple in corporate reports. 🍞📊
Let's hope ESG data tastes better than Vegemite (I'm still trying to acquire the taste...)! 😂
One thing is certain: supplier financing should markedly sweeten 🍬 those new ESG KPI requirements from suppliers, by supporting suppliers in getting access to additional 💰 and cheaper 💸 funding.
3 key things to remember:
Combining ESG reporting, supply chains, data and funding is the core recipe to make the latest ESG regulation a success.
Corporates that engage early with suppliers and support them are the ones that'll win the ESG race! 🏆 Because Finance is the tool to incentivize suppliers and fund their transformation.
And guess what? Boosting your EBITDA while doing it is possible with Koaloo.Fi! 💰🌍
Here's a down-to-earth deep-dive into the key requirements of Australia's new Mandatory Climate-Reporting Regulation...
Australia has passed new legislation mandating climate-related financial disclosures for certain entities, with reporting set to begin in 2025.
WHEN? Implementation timeline:
The mandatory climate reporting regime will start on January 1, 2025.
Like the CSRD in Europe, a phased approach will be used, with different groups of entities required to report at different times based on the size & structure.
WHAT? Reporting Requirements for companies:
Disclose material climate risks + opportunities + governance arrangements related to climate issues.
Conduct scenario analyses on both global warming scenarios: a 1.5-degree and a catastrophic (2.5+ degrees) scenario.
Report Scope 1, 2, and 3 Greenhouse Gas Gmissions (GHG) across the value chain
WHO? Affected Entities
The regulation applies to entities required to lodge financial reports with the Australian Securities and Investments Commission (ASIC), categorized into three groups:
Group 1 (reporting from January 1, 2025): Very large entities with revenues of $500 million or more, over 500 employees, or assets of $1 billion+.
Group 2 (reporting from July 1, 2026): Medium entities with revenues of $200 million and more.
Group 3 (reporting from July 1, 2027): Smaller entities with revenues of $50 million or more.
HOW? Reporting Framework
The Australian Accounting Standards Board (AASB) is developing climate disclosure standards aligned with international standards. Climate-related disclosures will be part of a new sustainability report required in annual financial reporting obligations.
Climate disclosures will be subject to assurance requirements similar to those for financial reports.
On enforcement, for reports issued between July 1, 2025, and June 30, 2028, the regulator will be able to bring action relating to breaches of relevant provisions.
So, who's ready to make ESG reporting a global party? 🌎🎉 Let's make ESG fun, engaging, and profitable!🌍🎉 To know more about how to make it happen, check us out at: www.koaloo-fi.com
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