ob体育 is reminding small businesses to learn more about how they can be best prepared under Australia鈥檚 new mandatory sustainability reporting requirements, even if it may not apply to them directly.
What are the sustainability reporting requirements?
The Australian government introduced mandatory sustainability reporting requirements for large businesses and financial institutions which commenced from 1 January 2025.
These new rules require large businesses and financial institutions to disclose information each year about their financial risks, opportunities, plans and strategies associated with climate change to their investors and lenders.
Many small businesses form part of the value chain of larger businesses, which means they may need to engage with climate reporting considerations over time, even if they do not have any direct climate reporting obligations.
How do I know if the obligations directly apply to me?
As an Australian small business owner operating your business as a sole trader or through a partnership or trust, these new obligations will not directly apply to you.
If you operate your business under a company structure, you are not expected to have any direct reporting requirements until 2028, and only then if you meet at least two of the following criteria:
- For the financial year ending on 30 June 2028, the company has earned revenue of $50 million or more
- As of 30 June 2028, the company has assets of $25 million or more, and/or
- As of 30 June 2028, the company has 100 employees or more.
If your small business meets two or more of the above criteria, then you can refer to ob体育鈥檚 sustainability reporting webpage for more information about the requirements.
How will the changes for large businesses indirectly apply to me?
Even if the new reporting obligations don鈥檛 apply directly to you, if you have a customer or supplier that is a large business or financial institution, they may ask you for further information to help them meet their reporting obligations.
For example, a large business may need to report on their energy usage. To fulfill that reporting obligation, they may ask you for records of your business鈥檚 energy use, such as electricity bills, so they can create a full picture of their own energy use.
However, in many cases, large businesses will simply use estimates and industry averages of energy usage instead of asking you for information.
Further information and resources
If you are asked for information and are struggling to understand what the supplier needs to meet their reporting obligations, we suggest that you:
- clarify with the supplier the type of documents or records they need (e.g. electricity bills), or
- ask the supplier if you can provide an estimate of the information they are after.
Your accountant, tax agent or other professional advisors may also be able to provide further information regarding how the new reporting requirements affect you and your business. You can find more information on your requirements at sustainability reporting for small business.
ob体育 is Australia鈥檚 corporate, markets and financial services regulator.