Climate Reporting in Australia
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September 23, 2025
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Navigating the New Australian Mandatory Climate Reporting
For the first time, climate-related disclosures are mandatory for Australian companies. Both private and public entities will be required to report on how they identify, assess, and manage climate risks, as well as how they are planning for the transition to a low-emissions economy — including the progress and credibility of any net zero commitments.
Australia’s new climate reporting standards have been tailored to suit the local context. While they are aligned with the global ISSB (International Sustainability Standards Board) framework, the Australian standards take into account existing frameworks such as the National Greenhouse and Energy Reporting (“NGER”) scheme, offering clearer guidance that is more specific to the Australian market.
Impacts on Reporting
As a result, annual reporting in Australia is undergoing a major shift. For companies captured by the new legislation, sustainability reporting will no longer be optional or informal — it will become a core part of the annual reporting suite, standing alongside the Directors’ Report, Financial Report, and Auditor’s Report. This new Climate Report will be treated with the same level of rigour, transparency, and legal scrutiny as financial disclosures.
How FTI Consulting Can Help
Many businesses have already undertaken some form of climate risk assessment or transition planning. However, the bar is now being raised. Our team is helping clients navigate these changes through detailed gap analyses, comparing their existing climate-related disclosures with the requirements of the incoming legislation.
This process helps identify any missing elements — whether in governance, risk management, scenario analysis, or emissions metrics — and provides a clear roadmap to full compliance which our teams can help execute.
The new reporting requirements present both challenges and opportunities. With a well-informed strategy and expert guidance, companies can use these mandatory reporting requirements to build stakeholder trust, enhance transparency, and demonstrate their commitment to climate action and long-term sustainability.
Click here for more information on FTI Consulting’s ESG & Sustainability services and how we can help.
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Published
September 23, 2025
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Senior Director