Improving the efficiency of climate-related financial disclosures

Treasury has opened a consultation on options to improve the efficiency of the mandatory climate related financial disclosure regime established under the Australian Sustainability Reporting Standards. The consultation paper, published in August 2026, focuses on three main areas, namely the assurance pathway that currently requires entities to move from limited assurance to full reasonable assurance on their disclosures by 2030, clearer guidance on applying proportionality concepts such as reasonable and supportable information without undue cost or effort, and clearer boundaries on the information reporting entities can request from suppliers in their value chains.

Options under consideration for assurance include retaining the legislated move to reasonable assurance by 2030, delaying that transition, or applying reasonable assurance only to more mature metrics such as Scope 1 and 2 emissions while Scope 3 emissions remain under limited assurance. The paper also raises smaller proposals, including aligning National Greenhouse and Energy Reporting periods with financial year reporting and allowing sustainability assurance work to count toward auditor registration requirements. Submissions on the consultation close on 2 October 2026, and Treasury has indicated that no changes will affect reporting for the current financial year.

The consultation does not reduce or suspend any existing climate reporting obligation. It affects entities already captured by the mandatory regime, and indirectly affects their suppliers who may currently be asked to provide climate related information to support those entities' disclosures. Any resulting changes would depend on the outcome of consultation and subsequent regulatory or legislative action.