How companies prepared for mandatory climate reporting

Australian-listed companies faced a significant challenge in 2023 and 2024: preparing for the most significant change to corporate reporting in decades. With mandatory climate-related financial disclosures looming under AASB S2 Climate-related Disclosures and ASSA 5000 sustainability assurance standards, companies have scrambled to transform their reporting practices ahead of the requirements taking effect by the end of 2025. For the first time, Australia’s largest companies will be legally required to disclose climate-related risks and opportunities, alongside their financial statements, with independent assurance required of this information by Registered Company Auditors. This represents a fundamental shift from voluntary sustainability reporting to mandated climate disclosures integrated into annual reports.