To create a more sustainable and resilient economy, Australia’s corporate regulatory guidance and frameworks will change as of 1 January 2025 to include mandatory climate reporting.
The legislation and the reporting standard are adopted from IFRS S2 Climate-related Disclosures by International Sustainability Standards Board (ISSB) and the recommendations from the Task Force on Climate-related Financial Disclosures (TCFD).
This will require companies to disclose their exposure to climate-related risks and opportunities. Starting initially with listed companies and large financial institutions, these new regulations expand to include more entities over time.
2XE’s climate reporting services
While these new regulatory frameworks target the larger end of town, this will have cascading impacts across all supply chains as larger suppliers increasingly ask even their small business suppliers for their emission reports and climate risk plans.
We offer a comprehensive range of services to help businesses prepare for and comply with climate-related financial disclosure requirements. We understand that each business is different, your reporting needs will vary depending on your business and your progress on this journey. No matter where you are in the process, we can support you every step of the way.
1. Climate reporting gap analysis - we review your existing processes, governance structure, and reporting practices for managing climate-related risks and opportunities. This includes identifying the gaps between your current state and the requirements of IFRS S2 and the proposed framework for mandatory climate reporting in Australia.
2. Climate-related risk and resilience assessment - this is a comprehensive assessment of climate-related risks, including scenario analysis in line with IFRS S2 and proposed mandatory reporting guidelines. We help you to detail the material risks and opportunities, scenario analysis results, and qualitative assessments of potential impacts and likelihood of the material risks.
3. Assurance-ready GHG emissions inventory - we develop a comprehensive and verifiable GHG emissions inventory across Scope 1, 2, and 3 emissions, including a basis of preparation. This inventory will be ready for third-party assurance, ensuring accuracy and reliability.
4. Establishing the governance structure including the required climate-related and environmental policies - you need a robust governance framework for managing climate-related risks and opportunities. We will help develop and improve required climate-related and environmental policies tailored to your business needs.
5. Decarbonisation/transition plans and climate-related targets - this includes strategic plans for reducing carbon emissions and setting climate-related targets. These plans align with industry best practices and regulatory requirements, providing a clear pathway toward decarbonisation and resilience.
6. Report preparation and submission - we can help you ensure the accurate and timely preparation and submission of climate-related financial disclosure reports. This includes developing the report and supporting documentation to meet all regulatory standards and requirements.
7. Quantitative scenario analysis - for businesses that are more advanced in their journey, we perform a detailed quantitative scenario analysis to assess the financial impacts of various climate-related scenarios on your business. The analysis will provide valuable insights into potential risks and opportunities, helping you make informed decisions.
8. Risk management system integration and continuous monitoring and improvement - we can help you integrate climate-related risk management into your existing systems and establish protocols for continuous monitoring and improvement. This ensures that your risk management practices remain robust and responsive to evolving climate-related challenges.
Importance of mandatory climate reporting for Australian businesses
Investors, financiers and the broader business community understand that climate risk needs to be managed. This includes assessing physical and transition risks, and how these impact financial performance. By introducing this as a mandatory reporting requirement, the Australian Government is signalling how critical this is to the business community and how important transparency is to ensure investors to make informed decisions.
Regulatory compliance
Sustainability and corporate responsibility
Stakeholder expectations
ESG Risk Assessment
The Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) have encouraged voluntary disclosure. To speed up this process, these climate-risk disclosures will be mandated through amendments to the Corporations Act (2001). Australian Sustainability Reporting Standards (ASRS) will outline the specifics and compliance requirements for Australian companies.
ESG Strategy Development
This is not new. Corporate Social Responsibility (CSR) emerged in the business world as early as the 1950s and 1960s and outlined the responsibilities that businesses have to make decisions that are aligned with society's values. As civil rights and environmental movements increased the public’s awareness of corporate impacts, greater attention has been placed on these responsibilities.
ESG Reporting and Compliance
Our broader expectations of the business world’s responsibilities goes beyond profit-making. These include ethical (like fair treatment of workers), social (to engage positively with the community), environmental (reduce carbon emissions), and governance (transparent and accountable) considerations.
you need a robust governance framework for managing climate-related risks and opportunities. We will help develop and improve required climate-related and environmental policies tailored to your business needs.
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Why choose 2XE for climate reporting services?
At 2XE, we have a dedicated strategy team that delivers bespoke processes to streamline your reporting requirements and drive ongoing improvements in your business. With years of experience supporting companies in Australia, New Zealand, the Asia-Pacific region, and Europe, we specialise in developing comprehensive emissions reports and creating and implementing effective decarbonisation and transition plans.
We work with companies to conduct climate reporting gap analyses, risk assessments, and scenario analyses. Our expertise ensures that your business not only meets regulatory requirements but also builds resilience and capitalises on opportunities in the evolving landscape of climate-related financial disclosures. Our proven track record and tailored approach make us the trusted partner for your climate reporting needs.
Enhanced corporate image
Expert support and guidance
ESG Risk Assessment
As your customers and stakeholders increasingly expect more sustainable products and services, openly disclosing your climate risk and strategies to manage this is positive for your brand.
ESG Strategy Development
We value the relationships we build with our clients, and we share our knowledge and experience to achieve the best outcome for you.
ESG Reporting and Compliance
Our broader expectations of the business world’s responsibilities goes beyond profit-making. These include ethical (like fair treatment of workers), social (to engage positively with the community), environmental (reduce carbon emissions), and governance (transparent and accountable) considerations.
you need a robust governance framework for managing climate-related risks and opportunities. We will help develop and improve required climate-related and environmental policies tailored to your business needs.
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Speak to our climate reporting experts to understand how this impacts your business.
2XE acknowledges the Traditional Owners of the land on which we meet and work. We recognise Indigenous peoples’ continuing connection to land, place, waters and community. We pay our respects to their cultures, country and elders past and present.
