Group 1 climate reporting results a ‘mixed bag’

As recently reported by Accounting Times, Australia’s world-first mandatory climate reporting requires climate-related disclosures to be included in the corporate reporting cycle, which Grant Thornton partner John Askham (pictured) called the biggest fundamental change in corporate reporting in an entire generation.

On 1 January 2025, Group 1 entities were required to report with a year-end in December. In light of this, Askham said that the first release of these reports reveals a diverse range of approaches that were taken to reporting.

“[Some] big companies have released really quite succinct reports, and then some smaller companies have released quite long and complicated reports. So there's quite a bit of variation in terms of the understanding of the requirements.”

Education in the climate reporting learning phase is crucial, he added.

“We've gone to market with a very clear kind of education-first type approach and try to help people understand the requirements so that basically they don't have to rely on consultants every year to do it for them.”

This opportunity opened up a door for accounting professionals to influence global practices and share their knowledge with international counterparts.

Askham said that although climate reporting was the only mandated ESG reporting obligation, there was a possible expansion to topics such as biodiversity and human capital issues in the future.

The ability to identify climate-related risks and opportunities was the foundation of effective climate reporting for accounting professionals, he added, and engaging with cross-functional teams is crucial for accounting professionals to develop a comprehensive understanding of the factors important to reporting.