{"id":12254,"date":"2025-07-21T11:01:32","date_gmt":"2025-07-21T01:01:32","guid":{"rendered":"https:\/\/anitechgroup.com\/au\/?p=12254"},"modified":"2025-07-21T11:01:32","modified_gmt":"2025-07-21T01:01:32","slug":"2025-mandatory-climate-disclosure-where-does-your-business-stand","status":"publish","type":"post","link":"https:\/\/anitechgroup.com\/au\/blog\/2025-mandatory-climate-disclosure-where-does-your-business-stand\/","title":{"rendered":"2025 Mandatory Climate Disclosure: Where Does Your Business Stand?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">After <\/span><a href=\"https:\/\/www.asic.gov.au\/about-asic\/news-centre\/find-a-media-release\/2024-releases\/24-205mr-asic-urges-businesses-to-prepare-for-mandatory-climate-reporting\/\"><span style=\"font-weight: 400;\">Australia\u2019s Securities and Investment Committee<\/span><\/a><span style=\"font-weight: 400;\">, ASIC, adopts climate-related financial reporting in all large-scale enterprises and financial institutions from 1 January 2025, Australia officially enters a new era of corporate responsibility. Even though it&#8217;s been six months, many businesses are still having trouble with the practical aspects of climate-related financial reports. While others are already setting benchmarks for transparency and compliance.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This shift, driven by the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Act 2024, has transformed how businesses report on environmental risks. But with phased implementation now well underway, the key question for directors and compliance leaders is clear: where does your business stand?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At Anitech, we work with businesses across industries to help them not just meet these new standards but to use them as a foundation for sustainable growth, trust, and long-term value creation. We came up with this blog to alert businesses to the upcoming consequences. Through this blog, you will easily understand where your business stands today and what your future steps should be for the ESG mandate.<\/span><\/p>\n<h2><b>What Changed at the Start of 2025?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">From January 2025, Australian companies (large-scale enterprises and financial institutions) were required to begin <\/span><b>climate risk reporting<\/b><span style=\"font-weight: 400;\"> as part of their general-purpose financial statements. The legislation affects entities meeting two of the following thresholds:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Consolidated $500 million or more in revenue<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">EOFY consolidated gross assets of $1 billion or more<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">500 employees or more<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">These <\/span><b>Group 1 entities<\/b><span style=\"font-weight: 400;\"> are now legally required to disclose:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Scope 1 and 2 emissions<\/b><span style=\"font-weight: 400;\"> (with Scope 3 required from year two).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Governance and strategy regarding climate risks.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Risk management processes.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Metrics and targets for emissions and climate impact.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">All disclosures must align with the <\/span><a href=\"https:\/\/aasb.gov.au\/news\/australian-sustainability-reporting-standards-aasb-s1-and-aasb-s2-are-now-available-on-the-aasb-digital-standards-portal\/\"><b>Australian Sustainability Reporting Standards (ASRS)<\/b><\/a><span style=\"font-weight: 400;\">, modelled on global frameworks like <\/span><a href=\"https:\/\/www.ifrs.org\/issued-standards\/ifrs-sustainability-standards-navigator\/ifrs-s2-climate-related-disclosures\/\"><b>IFRS S2<\/b><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This isn\u2019t a soft rollout. ASIC and the Treasury made it clear: businesses should have been preparing long before the year began.<\/span><\/p>\n<h2><b>Where Businesses Stand Now: July 2025<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Six months into the reporting year, the divide is stark:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Prepared organisations have ESG frameworks, data pipelines, and governance committees in place.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Unprepared companies are scrambling to catch up, often missing interim reporting checkpoints or underestimating the data complexity.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Common issues we\u2019re seeing across industries include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Lack of clarity on Scope 3 emissions<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Underdeveloped assurance processes<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Unclear lines of governance and accountability<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Limited integration of climate strategy into financial risk planning<\/span><\/li>\n<\/ul>\n<h2><b>Why This Matters More Than Ever<\/b><\/h2>\n<h3><b>1. Compliance Is Now a Legal Obligation<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">This is no longer an optional part of ESG reporting in Australia. If you&#8217;re a Group 1 entity and fail to report in your annual statements, you&#8217;re in breach of the <\/span><a href=\"https:\/\/www.legislation.gov.au\/C2004A00818\/2019-07-01\"><span style=\"font-weight: 400;\">Corporations Act<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><b>2. Investors Are Watching<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Increased regulatory scrutiny has come hand-in-hand with greater market expectations. Lenders, shareholders, and investors now expect <\/span><b>climate disclosure in Australia<\/b><span style=\"font-weight: 400;\"> to be consistent, credible, and decision-useful.<\/span><\/p>\n<h3><b>3. Supply Chain Pressure Is Growing<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Even businesses not currently required to report are now receiving ESG and carbon data requests from their larger clients and supply chain partners, especially where <\/span><b>Scope 3 emissions<\/b><span style=\"font-weight: 400;\"> are in focus.<\/span><\/p>\n<p><b>What This Means for SMEs<\/b><\/p>\n<p><span style=\"font-weight: 400;\">SME businesses may not be directly entitled to report, as they do not fall into the 3 categories of mandatory reporting. However, if your clients or partners fall into the reporting categories, they\u2019ll need to disclose Scope 3 emissions, which include those generated by their value chain.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As a result, larger companies will begin requesting emissions data and sustainability information from their suppliers. SMEs that can\u2019t provide this may risk losing opportunities or being excluded from preferred vendor lists.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Now is the time for smaller businesses to assess their exposure, understand client expectations, and start preparing basic climate data and ESG policies to stay competitive.<\/span><\/p>\n<h2><b>What You Should Have in Place by Now<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">By July 2025, ASIC and climate governance experts recommend that entities should already have:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A dedicated <\/span><b>climate reporting lead or committee<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Clear <\/span><b>data systems<\/b><span style=\"font-weight: 400;\"> capturing emissions and climate risk<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Draft alignment with ASRS requirements<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Plans for <\/span><b>a limited assurance<\/b><span style=\"font-weight: 400;\"> engagement<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Integration of climate-related risks into broader financial planning<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If your organisation hasn\u2019t achieved these milestones, you\u2019re likely behind the curve\u2014but not too late to catch up.<\/span><\/p>\n<h2><b>What If You&#8217;re Not There Yet?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Don\u2019t panic, but don\u2019t delay; this is the ideal time to:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Conduct a <\/span><b>gap assessment.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Identify <\/span><b>gaps in data, governance, and assurance.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Engage climate and reporting professionals.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Start <\/span><b>drafting disclosures<\/b><span style=\"font-weight: 400;\"> for review ahead of audit season.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">ASIC has signalled that while enforcement will consider context, there will be <\/span><b>no tolerance for inaction<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2><b>How Anitech Supports Climate Reporting Compliance<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">At <\/span><b>Anitech<\/b><span style=\"font-weight: 400;\">, we specialise in helping businesses:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">By understanding and implementing <\/span><b>mandatory climate disclosure<\/b><span style=\"font-weight: 400;\"> standards.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Design ESG governance and assurance frameworks.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Build internal systems for <\/span><b>climate risk reporting.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Train leadership teams on disclosure obligations.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Align climate strategy with business planning and risk management.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">We focus on compliance that fits your organisation\u2014efficient, realistic, and scalable.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Our strength lies in bridging legislation with practical execution. We ensure our reports meet regulatory requirements and will comply with the upcoming 3rd-party assurance requirements.<\/span><\/p>\n<h2><b>Looking Ahead: What Comes Next?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">July is not the end of the process of climate exposure; it&#8217;s the middle point. Looking forward to FY2025-26 and beyond:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Group 2 entities will join the framework in July 2026.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Assurance requirements will become stricter over time, transitioning from limited to reasonable assurance.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Stakeholder expectations will continue to rise as climate accountability becomes standard in global markets.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The organisations that treat this shift as strategic will gain a clear advantage.<\/span><\/p>\n<h2><b>Final Takeaway<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Mandatory climate disclosure is here, active, and enforceable. If your business is still treating climate reporting as a compliance side task, it\u2019s time to reassess. The bar has moved, and it\u2019s not coming back down.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At Anitech, we\u2019re here to help you meet this moment. With tailored, practical, and strategic ESG support, we\u2019ll guide you through the complexity so you can focus on building a more responsible, future-ready business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Need help meeting your 2025 climate disclosure obligations? Contact <\/span><a href=\"https:\/\/anitechgroup.com\/au\/location\/\"><span style=\"font-weight: 400;\">Anitech today<\/span><\/a><span style=\"font-weight: 400;\"> for tailored ESG reporting and compliance support.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>After Australia\u2019s Securities and Investment Committee, ASIC, adopts climate-related financial reporting in all large-scale enterprises and financial institutions from 1 January 2025, Australia officially enters a new era of corporate responsibility. Even though it&#8217;s been six months, many businesses are still having trouble with the practical aspects of climate-related financial reports. While others are already&#8230;<\/p>\n","protected":false},"author":1,"featured_media":12256,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[1,245],"tags":[],"ppma_author":[253],"class_list":["post-12254","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-sustainability"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>2025 Mandatory Climate Disclosure: Where Does Your Business Stand?<\/title>\n<meta name=\"description\" content=\"After Australia\u2019s Securities and Investment Committee, ASIC, adopts climate-related financial reporting in all large-scale enterprises and financial institutions from 1 January 2025\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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