Heavy emitters win more time for mandatory climate disclosures, but not much else
Treasury has delayed the start of its new climate reporting regime by six months. But heavy emitters and private companies are among those that still have major gripes with how the new regime will operate.
Australia’s biggest companies have won a six-month reprieve against mandatory climate reporting requirements, but heavy emitters, private companies and overseas subsidiaries of global corporations still have major gripes with how the new regime will operate.
When legislation was introduced into parliament last week, the government flagged a six-month delay to its start. Large companies with more than $500 million in revenue, 500 staff, or $1 billion in gross assets will now start reporting from their first financial year end following 1 January 2025. Smaller companies with a minimum revenue over $50 million will be phased in over subsequent years.
KPMG ESG partner Adrian King said the delay was not unexpected given the original timeline was ambitious, and changes little in the grand scheme of the regulatory goals linked to the reporting requirements. If anything, he said, it gave the government a chance to catch up with its own timetable in terms of providing greater clarity on reporting obligations.
“We're moving at a pace that's not normal and that does concern people,” King said. “As a result of that, the delay is not a surprise.”
