5 key takeaways from the guide

1. Mandatory climate reporting is imminent

The first tranche of the International Sustainability Standards Board's sustainability-related financial reporting standards is expected in June 2023. The recent Commonwealth Treasury Consultation Paper on Climate Reporting indicates that mandatory climate reporting will commence in FY25.

2. Reporting will be subject to stakeholder scrutiny

There will be significant scrutiny of organisations’ climate reporting from regulators, investors and other stakeholders.

3. The main elements of the reporting model are clear

The fundamental expectations go beyond the Taskforce for Climate-related Financial Disclosure (TCFD) framework.

4. Early preparation is critical

The implementation time will likely be short, and will require significant board and management focus. Board members should focus on the opportunities, not just risks from heightened disclosure and market comparability.

5. There are key actions to prepare

Boards should act now by reviewing existing governance structures, setting a sustainability and climate strategy and identifying gaps between current and future resourcing, data and disclosure needs.

The guide also explores the proposed standards in more detail, how it is a step up from the Taskforce for Climate-related Financial Disclosure (TCFD) framework, the legal risks and the boards evolving role in sustainability and financial reporting.

Our Climate Risk Governance team can help your organisation to navigate through these obligations. Please contact us if you would like to discuss how best we can assist.