Update on Climate-Related Disclosures in Financial Statements – June 2024

Further to our earlier snapshot of the Australian and international landscape in relation to climate-related disclosures in financial statements, there have been further activities that  move us closer to mandatory disclosures for certain entities in Australia.

  • Changes to the Corporations Act

Legislation has been introduced to Parliament (expected to be debated in May) that will mandate climate-related disclosures in the financial statements of certain entities based on their size.  This will be via a phased approach – with the effective date for the largest group being 1 January 2025, and all large proprietary companies being affected from 1 July 2027.

The proposals include a materiality exemption for large proprietary companies that do not meet the size thresholds for Group 1 or Group 2. However, the statement that the company does not have material climate-related risks or opportunities will need to be audited, and therefore will not be a simple statement but rather a supportable process – likely involving experts.

  • Issue of Sustainability Reporting Standards by the AASB 

The comment period on the exposure draft has closed and the AASB are in the process of discussing feedback received, with a view to issuing the Australian Sustainability Reporting Standards in the next few months.

As the landscape of climate-related disclosure reporting continues to evolve, staying ahead of these changes is vital. We are committed to keeping you informed, and can guide you through the complexities of ESG compliance obligations for your business.

For assistance with your financial and sustainability reporting requirements, contact your local Bentleys audit and assurance advisor.

We’re here to help you get where you want to be.

Disclaimer: This information is general in nature and should not be relied on as advice. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs and seek professional advice before making any decisions based on this information.

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