Mandatory climate reporting is no longer a distant concern – it’s here, and it’s real. With the first reporting phase already in effect for large entities (companies with revenue of more than $500 million), many Australian businesses are now on the clock to ensure they meet their obligations.
From 1 July 2026, companies with over $200 million in revenue will need to prepare annual sustainability reports. One year later, that threshold drops to $50 million. But waiting until the deadline is too late. In our experience, it can take 15 to 18 months to build the frameworks and systems required for an assurance- ready sustainability report.
The reality is already hitting home. Some businesses are missing out on contracts because they’re unable to provide emissions data during tenders or procurement processes. Large companies have started requesting that their suppliers disclose their emissions and climate strategies, creating a ripple effect across entire supply chains.
Accurate measurement is the first step toward meaningful emissions reduction. But many organisations are finding that calculating their greenhouse gas footprint sits well outside their day-to-day operations. It requires new systems, tools, and a clear understanding of the four pillars of sustainability reporting: Strategy, Risk Management, Metrics and Targets, and Governance.
This transition is a significant undertaking. Companies may not yet have the internal capability to manage it, and advisory support is in high demand. It takes time to develop appropriate processes, capture reliable data, and set realistic targets, all of which are necessary for credible reporting.
While the regulations initially focus on larger businesses, the expectations will flow through to mid- sized and even small businesses. The message is clear: if you haven’t already started preparing, now is the time.
Addressing climate reporting obligations early isn’t just about compliance – it’s a chance to future-proof your business and position it as a preferred supplier in a fast-changing economic landscape.
This article first appeared in the Spring 2025 issue of HLB Mann Judd’s Client Alert.