How New Climate Disclosure Legislation Impacts Business and Environment
Have you heard the news? In a landmark move, the Australian Treasury has released a draft for mandatory climate risk reporting legislation, marking a significant step in this country’s journey towards environmental accountability and sustainability.
This legislation will mandate entities and asset owners to report on the financial impacts of climate change. Set to come into effect in tiers from July 2024 to July 2027, this legislation gradually increases its remit to incorporate more and more businesses.
This initiative aligns with global movements towards a more sustainable and transparent corporate world.
With this in mind, it’s never been a better time to hire an environmental consultant and ensure that your business is as accountable as it can be.
The WolfPeak Perspective
At WolfPeak, we believe that this legislation is about more than just compliance, and presents the perfect opportunity for businesses to not only tick boxes, but to realign their strategies with sustainable practices.
This is a pivotal moment for businesses in Australia, and provides the perfect foundation for aligning economic growth with environmental preservation.
Our expertise in Infrastructure & Environmental Management, Risk, Audit & Compliance, and Sustainability positions us uniquely to guide businesses through this transition.
How will this Impact Businesses and Investors?
Starting July 2024, entities that fulfil at least two of the following three conditions will be required to report: having revenues of $500 million or more, possessing assets of $1 billion or more, or employing 500 or more individuals.
From July 2026, the reporting requirement extends to asset owners with assets under management of $5 billion or more, and entities that meet two out of these three criteria: generating revenues of $200 million or more, holding assets of $500 million or more, or having a workforce of 250 or more employees.
Finally, beginning in July 2027, entities with revenues of $50 million or more, assets of $25 million or more, and a staff count of 100 or more will also be subject to mandatory reporting.
Treasurer Jim Chalmers has highlighted that this legislation will enhance transparency, aiding investors and companies in making more informed decisions.
This echoes WolfPeak’s belief that informed decisions form the foundations of sustainable development.
The transition periods also provide a buffer, allowing businesses to adapt without the immediate threat of litigation, ensuring challenges can be properly approached and thought out for long-term optimisation.
WolfPeak is Here to Help
This legislation is a call to action for businesses to prioritise sustainability, and the buffer period will be over before you know it, so it’s time to start planning for the future.
For WolfPeak, disclosure legislation aligns perfectly with our mission of harmonising economic growth with environmental preservation. We encourage businesses to view this not as a negative, but as an opportunity to innovate and lead in sustainable practices.
WolfPeak stands ready to assist businesses in navigating these new requirements. Our approach caters to businesses of all types and backgrounds. So, whether you’re looking to further hone what is already a sustainable approach, or make that important first step, we’re here to help.
There’s never been a more important time to act, and WolfPeak is here to guide you through every step of this journey.
We can guide you to not only meet these new requirements but also to leverage them in a way that pays off for your business.
Our extensive understanding of Australia’s ecology and business landscape ensures that we are positioned to offer practical localised and broad-based solutions.
Get in touch to find out more.