Industry Update Oct 2023 - Issue 134

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AUSTRALIA'S LARGEST CIRCULATING MANUFACTURING MAGAZINE

Issue 134 Oct 2023 $12.00 inc. GST

Are manufacturers ready for mandatory emissions reporting? With climate-related financial disclosure on the horizon, large Australian manufacturers would be wise to start considering how they manage mandatory reporting of their carbon emissions.

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he Australian government is shifting to align the country with jurisdictions such as Europe and the US in introducing mandatory sustainability reporting for large listed and unlisted entities and financial institutions, including climate emissions. Although still at proposal stage, the federal Treasury has now closed submissions on its second consul‑ tation paper seeking views on the

design and implementation of the government’s plan for the disclosure of ‘climate‑related financial risks and opportunities’. The Australian Accounting Standards Board (AASB) will be responsible for developing Australian climate disclosure standards, which would closely align with the International Sustainability Standards Board’s (ISSB), IFRS S2. Submissions to Treasury’s proposal include input from a wide variety of industry, energy and accounting companies. Most are in favour of the proposed staged approach, which gradually adds reporting requirements to companies based on their size, as per below*:

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• Group 1 - 2024-25 onwards Entities required to report under Chapter 2M of the Corporations Act and that fulfil two of the three thresholds: – over 500 employees; – value of consolidated gross assets at the end of the financial year of the company and any entities it controls is $1 billion or more; – The consolidated revenue for the financial year of the company and any entities it controls is $500 million or more, AND entities required to report under Chapter 2M of the Corporations Act that are a ‘controlling corporation’ under the NGER Act and meet the continues on page 15

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