The Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Act 2024 amends the Corporations Act 2001 to introduce a mandatory climate-related disclosure regime, set to take effect in Australia on January 1, 2025. Under this Act, specified entities must prepare annual sustainability reports as part of their financial reporting. These reports must outline climate-related risks and opportunities.
The climate statements for a financial year, along with the accompanying notes, must disclose all of the following:
- Any material financial risks related to climate for the entity or material financial opportunities related to climate for the entity that are required to be disclosed by sustainability standards established for this purpose.
- Any metrics and targets the entity has related to climate, as required by sustainability standards made for this purpose, including metrics and targets regarding: (i) Scope 1 greenhouse gas emissions; (ii) Scope 2 greenhouse gas emissions; or (iii) Scope 3 greenhouse gas emissions (including financed emissions).
- Any information that pertains to: (i) Governance, strategy, or risk management by the entity related to the risks, opportunities, metrics, and targets and any disclosures required by sustainability standards established for this purpose.
