𝗧𝗵𝗶𝘀 𝗮𝗿𝘁𝗶𝗰𝗹𝗲 𝘄𝗮𝘀 𝘄𝗿𝗶𝘁𝘁𝗲𝗻 𝗯𝘆 𝗜𝗻𝘁𝗲𝗴𝗿𝘂𝗺 𝗘𝗦𝗚 𝗛𝗲𝗮𝗱 𝗼𝗳 𝗥𝗲𝘀𝗲𝗮𝗿𝗰𝗵 𝗛𝗮𝗻𝗻𝗮𝗵 𝗕𝗲𝗻𝗻𝗲𝘁𝘁.

Last week, Australia passed a law which will require certain organisations to include climate disclosure in their annual reports for financial years commencing after January 1st 2025.

The new reporting requirements are largely in line with the IFRS S2 standards, and will make emissions disclosure mandatory, alongside disclosure on governance, strategy and risk management processes used to assess and manage climate risks.

Currently, data on the Integrum ESG Platform shows that approximately 20% of Australian companies do not disclose their Scope 1 &2 carbon emissions.

This new law means that this number should shrink to 0 by 2028 (there is a phased in approach based on company size).

In Australia, the fiscal year concludes in June, so many annual reports are currently being released for FY24.

That is the case for two large Australian companies;

🗃️ CAR Group [CAR:ASX], who recently published they FY24 report in which they quantified their global carbon footprint for the first time, having previously published data for only Australian operations.

🗃️ Similarly, The Lottery Corporation [TLC:ASX]  recently published their inaugural standalone Sustainability report, which included emissions disclosure for the first time.

It will be interesting to see how many more Australian companies adopt these disclosure requirements earlier than mandated. We will be keeping an eye on the impact of this on industry practices and investor confidence.

𝗪𝗵𝗮𝘁 𝗱𝗼 𝘆𝗼𝘂 𝘁𝗵𝗶𝗻𝗸?

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