ASIC, AASB announce workshops to prepare for sustainability reporting

ASIC and the Australian Accounting Standards Board (AASB) will host a series of free in-person workshops next month for companies that will be subject to mandatory sustainability reporting requirements for financial years commencing on or after 1 July.

The joint workshops are designed to provide a practical starting point for smaller and mid-size companies at the beginning of their sustainability reporting journey.

"Employees, directors, shareholders, creditors and owners and operators of small-to-medium businesses seeking to enhance their understanding of the foundational concepts around sustainability reporting are strongly encouraged to attend the workshops," the regulator said.

The workshops follow the release of ASIC e-learning modules on the core concepts underpinning the sustainability reporting requirements.

ASIC said the workshops complement the e-learning modules by providing participants with the opportunity to network and share practical insights about the modules with peers at a similar stage in their transition to sustainability reporting.

"The workshops will feature expert-led presentations, discussions and practical activities to help participants apply key concepts with confidence," it said.

Workshops will be held in May across Sydney, Melbourne, Brisbane and Perth, and delivered by the University of Technology Sydney.

ASIC said it remained focused on supporting industry implementation of the sustainability reporting requirements through engagement, guidance and capacity building.

"ASIC will be pragmatic and proportionate in its approach to supervision and enforcement as the new requirements are phased in and as industry adjusts to the requirements," it said.

The sustainability reporting obligations have already commenced for Group 1 entities for the financial years beginning on or after January 2025 and will gradually apply to other large companies over time.

The sustainability reporting rules require very large businesses and financial institutions to provide more information to their investors and lenders about their material financial risks and opportunities related to climate change.

Group 2 entities are required to begin their reporting for the financial years on or after 1 July 2026. This group includes entities with revenue greater than $200 million, assets greater than $500 million and more than 250 employees.

Group 3 entities will start their reporting for financial years beginning on or after 1 July 2027. Group 3 includes entities with revenue greater than $50 million, assets greater than $25 million and more than 100 employees.

ASIC previously said its educational modules were designed for smaller reporting entities and small- and medium-sized companies that are suppliers to reporting entities, but expects the resources will be helpful to any report preparer new to the sustainability reporting requirements, as well as other stakeholders in the climate reporting ecosystem.