New research examining how Australian companies use the Sustainability Accounting Standards Board (SASB) Standards to identify and disclose material climate-related information provides insights into what is working well and where further development may be needed.

The research, undertaken by RMIT University and The University of Queensland, examined 65 Australian listed companies that voluntarily reported using the SASB Standards. On average, the companies disclosed 66.7% of the climate-related information assessed under the framework.

Although AASB S2 Climate-related disclosures does not require the disclosure of industry-based metrics, the climate-related content of the SASB Standards is largely aligned with the industry-based guidance accompanying IFRS S2.

What the research found

Climate risk was widely recognised, with 92% explicitly identifying its materiality in their annual reports. However, only 48% recognised the impact of climate risks within their financial statements.

Companies generally performed better on Environment topics, particularly greenhouse gas emissions and energy management. Disclosure was weaker for Business Model and Innovation, especially quantitative metrics: while 74.7% of companies reported relevant qualitative information, only 32.9% reported the recommended quantitative metrics.

Research challenges

The research also identifies challenges with industry classification and the application of metrics in an Australian context. Companies operating across multiple industries may require clearer guidance on classification, while some international metrics raise questions about which Australian regulations, regions or circumstances should be considered equivalent.

The researchers also observed that some topics now considered material by companies – including packaging, waste management and economic circularity – are not necessarily identified as material under the SASB Standards. This raises questions about how industry-based metrics should respond as the risks and opportunities facing industries evolve.

The research also found that only 26.9% of the SASB recommended disclosures assessed were contained in annual reports, with the remainder primarily located in standalone sustainability or climate reports and data packs. This highlights the importance of clear cross-referencing by reporting entities so information can be located by users across the reporting suite.

Overall, the findings provide a practical picture of how industry-based metrics are being applied in Australia and highlight areas where clearer guidance and consistent approaches may support more decision-useful reporting.