Essential ESG: Episode 30 – Navigating Australia’s Mandatory Climate Reporting Regime
In the latest episode of Corrs’ Essential ESG podcast, Sophie Parr is joined by partners Anna White and Kate Gill-Herdman to discuss Australia’s mandatory climate reporting regime and unpack the lessons learned following the first cycle of reporting. Sophie, Anna and Kate explore the practical challenges faced by Group 1 reporters, including the significant uplift in climate literacy, the need for multidisciplinary internal teams, and the complexities of applying AASB S2 in large corporate groups, particularly where Australian subsidiaries sit within global structures. The conversation examines directors’ duties under the Corporations Act, the new declaration requirement, and the transitional liability settings. Kate and Anna discuss how boards can prepare, including ensuring robust governance and verification processes, and maintaining defensible sustainability records. They provide practical guidance such as assessing reporting thresholds early, clarifying internal accountability, and resolving threshold legal issues upfront to avoid downstream challenges. The episode also highlights ASIC’s early observations on reporting quality and the heightened greenwashing risks arising from inconsistencies between sustainability reports, financial statements and external communications. This episode will be of interest to directors, general counsel, sustainability leaders, risk and compliance professionals, and organisations preparing for mandatory climate reporting under the framework. Essential ESG is a podcast series presented by Corrs that breaks down topical issues affecting the rapidly evolving environmental, social and governance landscape in Australia and beyond.
