The Australian Securities & Investments Commission (ASIC) published a reminder for small businesses on how Australia’s new mandatory sustainability reporting requirements may affect them, directly or through supply-chain information requests. The regime applies to large businesses and financial institutions from 1 January 2025 and requires annual disclosure to investors and lenders on climate change-related financial risks, opportunities, and related plans and strategies. ASIC clarified that the obligations do not directly apply to small businesses operating as sole traders or through partnerships or trusts. Small businesses operating as companies are not expected to have direct reporting requirements until 2028, and only if they meet at least two thresholds for the financial year ending 30 June 2028 (revenue of at least AUD 50 million, assets of at least AUD 25 million, and/or 100 or more employees as at 30 June 2028). Even where not directly in scope, small businesses may be asked by large customers or suppliers for data to support their reporting (for example, electricity bills to evidence energy usage), although ASIC noted that estimates and industry averages may often be used; where requests are unclear, ASIC recommends clarifying what records are needed or whether estimates are acceptable.
Australian Securities & Investments Commission 2025-03-31
Australian Securities & Investments Commission issues guidance for small businesses on mandatory sustainability reporting requirements
The Australian Securities & Investments Commission (ASIC) reminded small businesses about Australia's new mandatory sustainability reporting requirements, effective 1 January 2025 for large businesses and financial institutions. Small businesses operating as companies may face obligations from 2028 if they meet specific financial thresholds. They might still receive data requests from larger entities for supply-chain reporting, with ASIC advising clarification on required records or the use of estimates.