Australia ESG Requirements

Australia is introducing mandatory climate-related financial disclosures from 2025, aligned with ISSB standards, making it one of the first countries to mandate IFRS S1 and S2.

Regulatory Framework

Australian Securities and Investments Commission (ASIC) — Corporate disclosure oversight
Australian Accounting Standards Board (AASB) — Sustainability reporting standards
Australian Prudential Regulation Authority (APRA) — Climate risk for financial institutions

Key Requirements (From 2025)

Mandatory Climate Disclosure — IFRS S1 and S2 for large companies
Phased Implementation — Based on company size and sector
Assurance Requirements — Limited assurance initially, reasonable assurance from 2030

Implementation Timeline

Group 1 (FY 2025): ASX 200 companies, large financials
Group 2 (FY 2026): Other large companies
Group 3 (FY 2027): Medium-sized companies

Why Australia ESG Matters

Australia is a major resources exporter and early adopter of mandatory climate disclosure. The regulations will significantly impact mining, energy, and agricultural sectors globally.

Primary Source Documents

Part of ESG Hub | Curated by Ascent Partners Foundation