Climate and sustainability reporting have become increasingly important in Australia, with companies under pressure to disclose their environmental, social, and governance (ESG) performance. In 2023, several key reporting standards are set to take effect, shaping how companies report on their sustainability performance. Here are some of the key Australian climate and sustainability reporting standards to be aware of in 2023:
Modern Slavery Act: The Australian Modern Slavery Act, which came into effect in 2019, requires companies with a turnover of over AUD 100 million to report on their efforts to address modern slavery risks in their operations and supply chains.
Task Force on Climate-related Financial Disclosures (TCFD): The TCFD framework provides guidance for companies to disclose climate-related risks and opportunities in their financial reporting. In 2023, the Australian Securities and Investments Commission (ASIC) plans to release guidance on how to apply the TCFD framework.
Climate Active: Climate Active is a government-backed program that certifies carbon neutrality and climate neutrality of organisations, products, and services in Australia. From 2023, companies that have achieved Climate Active certification will be required to report on their sustainability performance using the Climate Active logo.
Australian Sustainable Finance Initiative (ASFI): ASFI is a collaborative initiative between government, industry, and civil society aimed at promoting sustainable finance practices in Australia. In 2023, ASFI is set to release guidelines for sustainable finance reporting, which will provide a framework for companies to report on their sustainable finance activities.
By complying with these key reporting standards, companies can demonstrate their commitment to sustainability and build trust with stakeholders. However, it's important to note that reporting requirements can be complex and may require significant resources and expertise.
Seeking guidance from sustainability experts can help ensure that your organisation produces an accurate and credible sustainability report.
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