Treasury consults on improving sustainability reporting efficiency
Treasury has released a consultation is the next step in the process announced by the Federal Government in the 2026 – 27 Budget to improve the efficiency of climate–related financial disclosures. The consultation focuses on three main areas:
- Adjusting sustainability assurance settings - seeking views on whether and how to reduce the “reasonable assurance” requirements for sustainability reports required for all entities from 2030, , with a view to reducing the requirement to “limited assurance” and delaying the transition to reasonable assurance to 2035, or requiring reasonable assurance for only “mature” sustainability reporting metrics, such as Scope one and Scope two admissions
- Improving consistency in the application of requirements - feedback is sought “where additional guidance may assist implementation of the sustainability reporting framework” in areas such as proportionality mechanisms in the AASB S2 Climate-related Disclosures, and the “no material climate–related risks or opportunities” relief in the Corporations Act 2001
- Setting clear boundaries on value-chain information requests - it is noted that reporting practices observed overseas under similar climate disclosure requirements have highlighted the potential value of clear boundaries on value-chain information requests. Options suggested include providing additional guidance on what constitutes a reasonable request information from an entity’s value chain or reducing supply chain administration burden through improved domestic emission factors. The report notes that standardising information that could be requested of supply chain entities (i.e. template) is not suggested as it risks encouraging reporting entities to issue data requests where they are not necessary under the legislation
The consultation paper also six feedback on other “opportunities”, such an approved alignment between domestic frameworks (particularly the National Greenhouse and Energy Reporting regime and its fixed reporting period, and changing registered company auditor practical experience requirements in light of the introduction of sustainability reporting requirements.
Separately, the Productivity Commission called for submissions on improving the non—financial business requirements, seeking input on the cumulative cost of sustainability and environmental reporting, opportunities to improve its efficiency and how mandatory sustainability reporting fits with existing reporting.
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