Australia shares first view of mandatory sustainability reporting results
The Australian Securities and Investments Commission (ASIC), recently published initial observations drawn from the very first sustainability reports submitted under the country’s new compulsory disclosure program. The outcomes provide some useful warnings and guidance ahead of the upcoming reporting season.
Australia’s mandatory sustainability reporting regime, which began in 2025, aims to improve the quality, consistency and comparability of climate-related financial disclosures. With a staggered implementation process in progress, some of the largest of companies have already filed their first reports.
ASIC’s early review of these initial filings found that data quantity and quality are up; the standardised requirements are already improving consistency and comparability of reporting. However, ASIC also flagged some areas for improvement, reminding preparers of their obligations around clarity, completeness and accuracy in sustainability reporting. Filers preparing their first disclosures under the new regime should ensure their reports meet all relevant requirements, including around disclaimers, cross-referencing, and the scope of climate-related targets.
ASIC’s wider review of these reports, submitted in December 2025, will continue over the coming months, with the final observations expected in the second half of 2026. Australia’s program requires reporting aligned with AASB S2, which is closely modelled on the International Sustainability Standards Board’s (ISSB) IFRS S2, making it one of the first major jurisdictions to bring ISSB-aligned climate disclosures into mandatory, structured regulatory reporting at scale.
An interesting first look at how mandatory, standardised disclosure can result in more consistent, comparable information than prior voluntary approaches. The next step? For regulators to ensure that structured digital reporting formats underpin the reporting as it matures, resulting in truly useful data.
Read more here.
