Australia's Sustainability reporting improves as companies share more climate

Australia’s new Sustainability reporting rules are helping large companies give clearer information about climate risks.

The Australian Securities and Investments Commission (ASIC) reviewed 40 sustainability reports from companies with financial years ending on December 31, 2025.

ASIC said the reports showed better quality and more clear information. Companies are also paying more attention to climate risks and opportunities.

The new rules are meant to help investors understand how climate issues may affect businesses.

However, ASIC found some areas that still need work. Companies need to give better information about future plans, climate targets and business goals.

They also need to explain the ideas and facts used when making future plans.

ASIC has given companies eight simple actions to help improve their reports. The regulator says reporting should get better as companies gain more experience with the new rules.

ASIC will continue to check sustainability reports during the 2026–27 financial year. It will review reports from large companies with financial years ending on June 30, 2026.

ASIC is also working with the Australian Treasury on ways to make climate reporting easier. The goal is to reduce extra work while keeping the main reporting rules.

Australia is bringing the new Sustainability reporting rules into place over three years.

The latest review shows that companies are making progress. But ASIC says more work is needed to make future climate plans and targets easier to understand.