Business Council of Australia seeks one-year delay on mandatory climate reporting

The Business Council of Australia requested a one-year extension and expanded liability protections for proposed mandatory climate-related reporting starting from July 1, 2024. For Indian companies tracking global disclosure timelines, the pushback highlights industry concerns over capability gaps in implementing ISSB-aligned climate reporting.

The Business Council of Australia called for an additional year for companies to comply with proposed mandatory climate-related reporting legislation, plus extended and expanded liability protections. The proposed law would apply to public and large proprietary companies filing audited reports with ASIC, starting with companies exceeding 500 employees, 500 million dollars revenue, or 1 billion dollars assets, and asset owners with over 5 billion dollars, reporting for financial years from July 1, 2024. Medium companies would begin from July 2026 and smaller companies the following year. The BCA supports a "training wheels" approach to implementation.

Large companies are affected first, those with over 500 employees, 500 million dollars revenue, or 1 billion dollars assets, plus asset owners with more than 5 billion dollars, reporting from July 1, 2024. Medium-sized companies, defined as 250-plus employees, 200 million dollars-plus revenue, and 500 million dollars assets, would begin from July 2026, with smaller companies, 100-plus employees, 50 million dollars-plus revenue, and 25 million dollars-plus assets, the following year. The BCA seeks time for investment in systems and assurance capabilities, plus liability safe harbours and transition periods for reporting companies.

Australian companies should monitor whether the requested one-year extension and expanded liability protections are adopted, and prepare for the original July 1, 2024 start for the largest entities. Companies should invest in systems and assurance capabilities, as the BCA emphasises the need for adequate time to develop skills. Reporters should track alignment between the AASB's forthcoming standards and ISSB standards to enable cross-jurisdictional comparison and reduce compliance costs. Entities should note AASB amendments in areas such as Scope 3 reporting and requirements for businesses without material climate-related financial risks.

Key figure — Proposed start date for largest companies: financial years from July 1, 2024