What is Sustainability reporting?

Sustainability reporting involves disclosing an entity’s environmental, social, and governance (ESG) performance. It helps stakeholders assess how organisations manage risks and opportunities related to climate change, resource use, human rights, and governance. For businesses and decision makers, it means embedding sustainability related risks and opportunities within strategy (short, medium and long term). For preparers, it means embedding sustainability considerations into corporate reporting. For auditors, it introduces new assurance responsibilities under emerging standards.

Key topic areas

Core pillars of sustainability reporting:

• Environmental: Greenhouse gas emissions (Scopes 1–3), climate risks and opportunities, energy and water use, biodiversity.
• Social: Workforce diversity, modern slavery, community impact, First Nations engagement.
• Governance: Board oversight, ethical conduct, risk management, and sustainability strategy.

Developments in Australia

Australia’s mandatory climate-related disclosure regime began on 1 January 2025, with phased implementation through 2030. Entities will report under the Australian Sustainability Reporting Standards (ASRS), aligned with IFRS S1 and S2. Assurance will be required under the Corporations Act and the new ASSA 5000 standard issued by the AUASB.

In 2024, Australian Treasury set out, in the Sustainable finance roadmap, its vision for implementation of key sustainable finance forms and related measures, including a ‘climate first, not only’ approach to sustainable finance.

Developments in New Zealand

From 1 January 2023, mandatory climate-related disclosures commenced for large financial entities, overseen by the External Reporting Board (XRB).

As at December 2025, the New Zealand Government has proposed changes to increase the market capitalisation threshold for listed issuers from NZ$60 million to NZ$1 billion, the removal of managed investment schemes and adjustments to director liability settings.

Global trends

Globally, the International Sustainability Standards Board (ISSB) has released IFRS S1 and S2, which are becoming the baseline for many jurisdictions. Many jurisdictions have indicated that wider sustainability reporting will be considered in the future.

What role do Chartered Accountants play?

Chartered Accountants play a key role in contributing to sustainable business, sustainability related disclosures and accompanying reporting for important decision making. Professional accountants also have a responsibility to act in the public interest and advance the profession. We’re passionate about empowering members in this space and also taking action as a membership body. Our sustainability action plan has a core focus on supporting members to play a key role as professional accountants.

As members of the UN Global Compact Network Australia and Accounting for Sustainability, we are committed to contributing to the UN Sustainable Development Goals and other important sustainability matters.

Shaping the future

CAs are integral to shaping the future and helping organisations understand past performance and provide insight into what the future might hold.

Accounting for Sustainability. From Sustainability to Business Resilience, a publication from the International Federation of Accountants, clarifies the important role accountants can, and must, play in embracing sustainability to ensure that businesses become more resilient by linking sustainability to a broader business agenda and strategy. 

Sustainability Management Advisory Committee (SMAC)

The sustainability management advisory committee (SMAC) consisting of members who work in, advise, or have a special interest in sustainability matters. They provide expert feedback to CA ANZ on practical sustainability matters and facilitates the exchange of knowledge about useful tools and resources for our membership. The committee helps to shape our advocacy efforts by providing feedback for consultations as well as raising awareness of the important role our members play in sustainability. All committee members act in their individual capacity as CA ANZ members.