ESG Reporting Frameworks are Evolving

On 12 January 2024, the Australian Treasury released the Exposure Draft Treasury Laws Amendment Bill 2024: Climate-related financial disclosure (Exposure Draft legislation).  It builds off previous consultations focused on the Government’s objective to improve the transparency and comparability of information available to investors regarding Australian entities exposures to climate-related financial risks and opportunities as well as their plans and strategies in response to those exposures.  

Sustainability Reporting Timeline

Figure 1: Timeline for the development of climate-related financial disclosure standards and legislation

If the proposed amendments are adopted it will pave the way for the Australian Accounting Standards Board (AASB) to make sustainability standards which would then be given legal effect through amendments to the Corporations Act 2001 and Australian Securities and Investments Commission Act 2001.

This Exposure Draft legislation proposes, amongst others, requirements in relation to:

  • who would be required to report  
  • what would be required to be reported  
  • where and when information should be disclosed 
  • directors’ obligations 
  • assurance requirements

This follows the release of the following International Sustainability Standards Board (ISSB) standards on 26 June 2023:

  • IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information  
  • IFRS S2 Climate-related Disclosures   

Shortly after the release of the international sustainability standards, the Australian Accounting Standards Board (AASB) released on 23 October 2023 Exposure Draft ED SR1 Australian Sustainability Reporting Standards – Disclosure of Climate-related Financial Information to propose climate-related financial disclosure requirements. It includes three draft Australian Sustainability Reporting Standards (ASRS Standards):  

  • [draft] ASRS 1 General Requirements for Disclosure of Climate-related Financial Information; 
  • [draft] ASRS 2 Climate-related Financial Disclosures; and 
  • [draft] ASRS 101 References in Australian Sustainability Reporting Standards

Contact us

Caroline Mara

ESG Assurance Lead Partner, PwC Australia

Tel: +61 (2) 4925 1125

John Tomac

Partner, PwC Australia

Tel: +61 282 661 330