Australia Sets 2025 Deadline for Large Companies to Report Climate Risks

Starting January 1, 2025, Australia will implement mandatory climate reporting for businesses, following the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill. This law introduces a phased approach where larger companies will be required to report first, with deadlines set for various groups based on company size.

The law mandates that companies perform scenario analyses that include a 1.5-degree global warming scenario, aligned with the Paris Agreement goals, as well as a more severe global warming scenario. This approach ensures that businesses assess both the physical and financial risks of climate change, particularly in relation to their long-term planning.

The first group of large entities, those with revenues exceeding $500 million, will need to submit their climate reports by the end of 2025. The second and third groups, consisting of medium and smaller entities, will have reporting deadlines extending into 2027 and 2028, respectively.

These new requirements will affect companies that already lodge financial reports with the Australian Securities and Investments Commission (ASIC). By mandating climate-related disclosures, Australia aims to increase transparency and encourage businesses to better understand and address the risks associated with climate change.