Strategic Focus: Understanding ESG And Sustainability Regulations In Australia

Executive Summary

ESG and sustainability disclosures are gaining traction in Australia, with climate concerns remaining the primary focus. Notably, social issues are on the rise, with 62% of firms now reporting on social targets and performance. Yet, despite an array of new laws and regulations introduced since 2023, Australia lags behind global frontrunners in regulating and practising ESG. As Australia is perceived as part of the “late majority” in ESG progression by 54% of stakeholders and as an “innovator” by 0% – according to the Unlocking ESG Investment in Australia 2024 report by Herbert Smith Freehills – there is a clear need for accelerated action. Across the globe, we are seeing regions pushing forward at different paces. This presents a particular challenge for Australian organizations with global footprints, which need to both understand the pace of change required of them and reconcile a multitude of overlapping regulations. This report provides executives with a summary of key reporting obligations that will impact Australian firms, alongside ways that firms can prepare for and navigate the rapidly evolving regulatory landscape.