Strategic Focus: Understanding ESG And Sustainability Regulations In Australia
20 Jan, 2025
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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.
Summary for decision-makers
Australia is accelerating and augmenting its ESG and sustainability regulations
Australia’s path to environmental sustainability and resource protection is evolving
Australia’s social disclosures are closing in on environmental reporting requirements
To align with evolving sustainability standards, Australian firms should start preparing and investing now
Australia is accelerating and augmenting its ESG and sustainability regulations
Australia’s path to environmental sustainability and resource protection is evolving
Australia’s social disclosures are closing in on environmental reporting requirements
To align with evolving sustainability standards, Australian firms should start preparing and investing now
Figure 1. Australian ESG and sustainability policies, roadmaps, regulations and strategies
Figure 2. Australia Corporations Act sustainability reporting requirements
Figure 3. Australia’s Circular Economy Framework
Figure 4. APAC ESG and sustainability policies, roadmaps, regulations and strategies
Figure 5. Australia’s export overview
Figure 2. Australia Corporations Act sustainability reporting requirements
Figure 3. Australia’s Circular Economy Framework
Figure 4. APAC ESG and sustainability policies, roadmaps, regulations and strategies
Figure 5. Australia’s export overview
Australia Auditing and Assurance Standards Board (AUASB), Australia Commonwealth Scientific and Industrial Research Organisation (CSIRO), Australia Department of Climate Change, Energy, the Environment and Water (DCCEEW), Australia National Reconstruction Fund Corporation, Australian Accounting Standards Board (AASB), Australian Bureau of Statistics (ABS), Australian Packaging Covenant Organisation (APCO), Australian Securities and Investments Commission (ASIC), Australian Securities Exchange (ASX), Australian Workplace Equality Index (AWEI), Beyond Zero Emissions, Climate Active, Deloitte, Global Reporting Initiative (GRI), Grant Thornton, Herbert Smith Freehills, Hong Kong Exchanges and Clearing (HKEX), HSBC, Indonesia Financial Services Authority (OJK), International Auditing and Assurance Standards Board (IAASB), International Financial Reporting Standards (IFRS) Foundation, International Sustainability Standards Board (ISSB), Japan Financial Services Agency (FSA), KPMG, Northern Australia Infrastructure Facility (NAIF), Rio Tinto, Santos, Securities and Exchange Board of India (SEBI), Singapore Exchange (SGX), South Korea Financial Services Commission (FSC), State Securities Commission of Vietnam (SSCV), Sustainability Standards Board of Japan (SSBJ), Thailand Security Exchange Commission (SEC), The Australia Institute, Tokyo Stock Exchange (TSE), Vanguard Investments Australia, Vietnam Ministry of Natural Resources and Environment, Workplace Gender Equality Agency (WGEA), World Bank
About the Authors
Jessie Wilson
Industry Analyst
Jessie is an Industry Analyst at Verdantix, with a research agenda spanning ESG reporting, the circular economy and supply chain sustainability. Jessie has a BSc in Geography ...
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Kim Knickle
Research Director
Kim Knickle is a Research Director at Verdantix, bringing more than two decades of analyst experience to the evolving world of sustainability. Her current research spans ESG a...
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