New ASIC sustainability reporting rules may impact international businesses in Australia
The Australian government has introduced mandatory sustainability reporting for large businesses and financial institutions from 1 January 2025.
By Ro Elvinia
Large businesses and financial institutions must disclose climate-related risks, financial impacts and sustainability strategies under the Australian Sustainability Reporting Standards (ASRS). These requirements apply to both Australian-based organisations and international businesses operating in Australia. The reporting will be phased in based on entity size, but even small and medium-sized enterprises (SMEs) – both local and international – may be indirectly affected through supply chain requirements.
Affected businesses must report Scope 3 emissions, which include indirect emissions from suppliers and service providers. As larger companies and financial institutions begin gathering environmental, social and governance (ESG) data from their suppliers, businesses in their supply chains may be asked to provide related disclosures, such as records of energy usage (e.g., electricity bills), even if they are not directly subject to the ASRS.
While these requirements will not apply directly to small businesses operating as sole traders or through partnerships or trusts, companies may be affected from 2028 onwards, provided they meet at least two thresholds: over $50 million in annual revenue, more than $25 million in assets or more than 100 employees. Businesses approaching these thresholds should refer to ASIC’s guidance to determine their reporting obligations.
For international and non-resident businesses unfamiliar with Australia’s evolving regulatory landscape, these sustainability reporting requirements may present new challenges. ABN Australia provides end-to-end support, including ASIC compliance, taxation and accounting services, tailored specifically for foreign companies operating in or expanding to Australia. With our deep regulatory knowledge and experience assisting international clients, we can help ensure your compliance obligations are understood and met from day one. Contact us today for a tailored advice.
Published: 22nd April 2025 | Last updated: 22nd April 2025