What the Federal Election Means for Climate Reporting

With the outcome of the federal election now clear, so too is the immediate future of Australia’s mandatory climate reporting regime.

The current government’s re-election means the sustainability disclosure laws will remain in place for at least the next three years. While the opposition had pledged to repeal the reporting requirements, that is now off the table until at least the next election.

For most covered entities, at least one climate report will need to be prepared during this term of government:

• Group 1 companies will need to submit two or three reports before the next election, depending on their financial year.
• Group 2 companies will submit their first report during this term and begin preparing for a second.
• Group 3 companies won’t need to submit a report until just after the next election, but they'll need to be ready to do so regardless of any promises to unwind the requirements.

Many organisations—mostly in Group 2, but also a fair number in Group 1—have delayed preparing for climate reporting while waiting for greater policy certainty. Now that the path forward is clear, those facing short timelines will need to act quickly to meet their obligations. For some, the window to prepare is less than 12 months.

Sustainability reporting is increasingly becoming a standard expectation in financial markets around the world. According to S&P, 35 other jurisdictions have either adopted ISSB-based standards or plan to. At the same time, investor expectations are unlikely to soften, regardless of future political developments.

Even if the reporting regime is revisited by a future government, it’s not clear there will be enough political support to roll it back. As companies implement systems and lodge their first reports, climate reporting is likely to become embedded in business-as-usual. While it may feel onerous now, the process will become easier with time.

Building the internal systems, governance processes, and data infrastructure required for climate reporting takes time. If you haven’t started yet, now is the time. If you’re already underway, keep going—those early investments will pay off, provided you maintain the momentum.