MANDATORY REPORTING IS COMING!

Whether ESG reporting is mandatory or not depends on the country, industry, and regulatory framework. In some jurisdictions, such as the European Union, certain companies are required to disclose non-financial information, including ESG metrics, as part of their annual reporting obligations. In other regions, there may be no explicit requirement for ESG reporting, but there may be voluntary guidelines or market expectations for companies to disclose their sustainability performance. Some stock exchanges may also require listed companies to report on their ESG performance.

Australian Treasury releases draft legislation on climate reporting

This significant milestone confirms the pathway to mandatory reporting of climate-related financial disclosures subject to the passage of legislation through Parliament. It follows the release by the Australian Accounting Standards Board (AASB) of the Exposure Draft ED SR1 Australian Sustainability Reporting Standards – Disclosure of Climate-related Financial Information in October 2023.

WHAT CAN I DO? Get started on voluntary reporting to prepare yourself for what is to come. GRI or GRESB are great places to start, and both are good instruction manuals on how to establish a solid ESG strategy. Also, rating agencies like Sustainalytics may rate you on publicly available information, and if you have a structure they recognise and trust, this will enhance you positioning and ranking in the public domain.