International

The International Sustainability Standards Board (ISSB) – a standard setting board within the IFRS Foundation – issued global sustainability disclosure standards in 2023 intended to create a consistent global baseline for capital markets. It is currently the main source of mandatory disclosures being developed and many jurisdictions, including Australia, are adopting or adapting ISSB standards into local standards. The ISSB has taken a climate-first approach, which allows entities to focus initially on climate-related disclosures, easing the transition to comprehensive sustainability reporting.

IFRS S1 – General sustainability-related Disclosures - Sets out disclosures about all sustainability-related risks and opportunities that could reasonably be expected to affect an entity’s prospects for each of four pillars: Governance, Strategy, Risk Management, and Metrics and Targets. IFRS S1 also sets out general requirements for the content and presentation of the disclosures. IFRS S2 – Climate-related Disclosures - Focuses specifically on climate-related risks and opportunities that could reasonably be expected to affect an entity’s prospects, including governance, strategy, risk management, and metrics and targets. Sustainability Accounting Standards Board (SASB) Standards - Industry based standards which provide guidance to support the requirements of IFRS Sustainability Disclosure Standards

The ISSB and the Global Sustainability Standards Board (GSSB) are working together to deliver full interoperability between their respective standards. The GSSB produces the Global Reporting Initiative (GRI) Standards, mainly used for voluntary reporting, focused on meeting the needs of a broad range of stakeholders, including investors. First published in 2016 and regularly reviewed, the GRI Standards are a modular system comprising three series of Standards:  

Universal Standards - Three areas of general disclosure that all organisations can apply to their reporting. Sector Standards - Particular standards for topics likely to be material for most organisations in a given sector. Topic-specific Standards - Disclosures for specific topics such as waste, emissions and occupational health and safety.

Some jurisdictions have introduced their own framework. For example, the European Union’s European Sustainability Reporting Standards (ESRSs), under the Corporate Sustainability Reporting Directive (CSRD).

In early 2025, the European Commission proposed an Omnibus simplification package, leading the European Financial Reporting Advisory Group (EFRAG) to develop revised, streamlined standards.
The Corporate Sustainability Reporting Directive (CSRD) also introduces sustainability reporting requirements for certain non-EU undertakings with significant activities in the European Union.  In July 2026, EFRAG begun a consultation on ESRS-40a Exposure Draft for Certain Non-EU Undertakings.

In January 2026, the International Public Sector Accounting Standards Board (IPSASB) released IPSASB SRS 1 Climate-related Disclosures, the first-ever public sector sustainability reporting standard. IPSASB SRS 1 applies to an entity’s general purpose financial reports for annual reporting periods beginning on or after 1 January 2028, with earlier adoption is permitted. 

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Australia

Mandatory climate reporting under the Corporations Act 2001¹ is being phased in over three years across three groups of reporting entities. Reporting commenced with the largest entities for financial years beginning on or after January 2025.

For entities captured in the Group 3 cohort (required to prepare sustainability reports for the financial years commencing on or after 1 July 2027), early preparation is strongly recommended to manage resourcing and capacity building.

While SMEs may not meet the threshold to be directly subject to mandatory reporting requirements under the Corporations Act 2001, they may be asked to provide GHG emissions data to large businesses and government entities as part of supply chain transparency and sustainability initiatives.

As part of the 26-27 Federal Budget, the Government announced its intent to increase the monetary thresholds for large proprietary companies — from $50 million to $100 million in consolidated revenue, and from $25 million to $50 million in consolidated gross assets. There is no change to the employee threshold. If legislated, Australian entities that fall below these revised thresholds will no longer be required to lodge an annual audited financial report, directors’ report or sustainability report.

The graph below shows the criteria for each group. Mandatory commencement dates for:

• Group 1, Financial years beginning on or after 1 January 2025
• Group 2, Financial years beginning on or after 1 July 2026
• Group 3, Financial years beginning on or after 1 July 2027

_{Source: navigating the Australian climate-related financial disclosure landscape} 

The Corporations Act 2001 requires that sustainability reports be prepared in accordance with sustainability standards made by the AASB.

Group 3 entities are required to provide climate related financial disclosures where they identify material climate related risks or opportunities for the reporting period. Where no such risks or opportunities are identified, entities must disclose that conclusion and explain the basis for it, and this disclosure is subject to assurance. 

There are two sustainability reporting standards issued by the AASB, based on the international standards issued by the ISSB, with specific modifications for Australia:

AASB S1 General Requirements for Disclosure of Sustainability-related Financial Information - Voluntary sustainability standard. Contains the climate-related disclosure requirements for each of the four thematic areas: Governance, Strategy, Risk Management, and Metrics and Targets. AASB S2 Climate-related Disclosures - Mandatory climate-related disclosures.

Certain Commonwealth and State-based public sector entities may be captured under the Corporations Act requirements. Additionally, the Commonwealth Govenment and NSW Government have introduced a mandatory climate-related disclosure regime for their entities. Disclosure requirements are based on AASB S2, with changes to suit the public sector circumstances and capabilitites. The regimes phase in both the entities captured and the disclosure requirements over time.

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New Zealand

The Financial Markets Conduct Act 2013 ³ requires climate reporting entities (CRES) to prepare climate statements in accordance with the climate standards issued by the External Reporting Board (XRB) for reporting periods beginning on or after 1 January 2023. 

In October 2025 and June 2026, Cabinet agreed to adjustments to the climate-related disclosures regime. The reporting threshold for listed issuers was increased, managed investment scheme (MIS) managers and health and life insurers were removed, and director liability settings were amended. At the time of writing, the Financial Markets Conduct Amendment Bill is before the House.

In March 2026, the FMA granted the Financial Markets Conduct (Climate-related Disclosures for Overseas Climate Reporting Entities) Exemption Notice 2026. It provides relief for certain overseas entities, subject to a comparable mandatory overseas climate reporting regime (currently only Australia and AASB S2 is listed), from the climate reporting, assurance, and record-keeping duties they have under Part 7A of the Financial Markets Conduct Act 2013, subject to certain conditions.⁴  

Climate Reporting Entities (CREs)

Climate Reporting Entities are defined under New Zealand's climate-related disclosure framework and include:

• Registered banks, credit unions, and building societies with total assets exceeding $1 billion.
• Licensed insurers⁵ with total assets over $1 billion or annual insurance revenue greater than $250 million.
• Listed issuers of quoted equity or debt securities with a combined market price or face value exceeding $1 billion.
• Crown Financial Institutions with total assets under management greater than $1 billion.

There are three Aotearoa New Zealand Climate Standards issued by the XRB:

NZ CS 1 Climate-related Disclosures - Contains the climate-related disclosure requirements for each of the four thematic areas: Governance, Strategy, Risk Management, and Metrics and Targets. NZ CS 1 also identifies the scope of the mandatory assurance that is required over the greenhouse gas (GHG) emissions disclosures. NZ CS 2 Adoption of Aotearoa New Zealand Climate Standards - Contains a limited number of adoption provisions from the requirements in both NZ CS 1 and NZ CS 3. An entity can choose which, if any, adoption provisions it wishes to use. NZ CS 3 General Requirements for Climate-related Disclosures -The foundation of the climate-related disclosure framework, containing the principles, underlying concepts, and general requirements.

In terms of broader sustainability reporting, the XRB has published a voluntary sustainability reporting framework: He Tauira.

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Keeping up to date 

This is a high-level summary of sustainability reporting developments as of August 2026. The landscape will continue to evolve, and members can stay up to date by visiting the Sustainability Resource Centre.

_{[5] In June 2026, the New Zealand Government announced that health and life insurers will be excluded from the mandatory climate reporting regime. General insurers are still required to report.}