Australia’s sustainability reporting regime has officially moved from future policy to current reality.
In December 2025, ASIC released a set of free, government-aligned training resources to help Australian businesses prepare for mandatory climate-related sustainability reporting under the Corporations Act and AASB S2.
While the release is framed as support for smaller companies, the implications are far broader. Any business that supplies larger organisations, participates in regulated procurement, or operates within complex supply chains will feel the effects.
This is not just a regulatory update. It is a practical opportunity to build capability early — with guidance that is authoritative, accessible, and aligned to what regulators will expect in practice.
What ASIC Has Released — and Why It Matters
ASIC, working with the Australian Accounting Standards Board (AASB), has developed eight sustainability reporting training modules. The first three are now available in PDF format, with interactive versions and workshops scheduled for early 2026.
The intent is clear. Regulators recognise that many businesses do not yet have the capability required to meet sustainability reporting expectations. These resources are designed to help organisations understand what is coming, how to think about climate-related risk, and where to start — before enforcement tightens.
For businesses that want to access the material directly, ASIC’s sustainability reporting educational modules are available on the ASIC website.
A Quick Recap of Australia’s Sustainability Reporting Requirements
Under recent reforms, certain Australian entities are now required to prepare sustainability reports containing climate-related financial disclosures.
The requirements are being phased in:
- From 1 January 2025 for the first group of reporting entities
- From 1 July 2026 for the second group
- From 1 July 2027 for the third group
The framework is governed by the Corporations Act 2001, AASB S2 Climate-related Disclosures, and ASIC’s Regulatory Guide 280.
This is no longer voluntary ESG reporting. It is regulated financial disclosure, with direct implications for boards, executives, and risk management.
Why SME's Should Pay Attention — Even If They Don’t Have to Report
ASIC has been explicit that small and medium-sized businesses are affected, even where they are not legally required to produce a sustainability report themselves.
In practice, this means SMEs should expect:
- Increased requests for climate and sustainability data from customers
- Greater scrutiny of operational and supply-chain risks
- Higher expectations around environmental and social practices
- Sustainability considerations becoming part of procurement and contract renewal decisions
If your business supports a reporting entity, you are already part of the reporting ecosystem. The question is not whether sustainability reporting will affect you, but how prepared you are to respond.
What the Training Modules Focus On — and What That Signals
The content of the first modules is deliberate.
They focus on:
- How the sustainability reporting framework works
- Climate change fundamentals
- Climate-related physical risks
This signals that regulators expect businesses to start with a clear understanding of how climate risk shows up in real operations — not just in reports.
Later modules will cover climate-related opportunities and emissions accounting, including the basics of carbon measurement. Emissions reporting is coming, but it is being introduced after businesses understand risk, exposure, and materiality.
This is not about perfect data from day one. It is about building defensible, decision-useful understanding.
A “Pragmatic” Regulatory Approach Has Limits
ASIC has said it will take a pragmatic and proportionate approach as the new requirements are phased in.
That should be read as a transition period, not an indefinite safety net.
The current window is about education, guidance, and capability-building. Over time, expectations will harden, scrutiny will increase, and tolerance for poor preparation will diminish.
Businesses that engage early will face lower cost and less disruption than those that leave preparation until reporting becomes unavoidable.
What Customers Will Start Asking Their Suppliers
As sustainability reporting becomes business-as-usual, many organisations will begin asking their suppliers practical questions such as:
- How do you manage climate-related operational risks?
- What happens to retired IT assets and sensitive data?
- Can you demonstrate responsible recycling or reuse?
- What evidence supports your sustainability claims?
Suppliers who can answer clearly and credibly will be easier to work with. Those who cannot may be viewed as risk exposures rather than neutral vendors.
Why Supplier Choice Is Now a Risk Decision
As reporting obligations expand, organisations will increasingly favour partners who reduce compliance friction and provide auditable outcomes.
Sustainability is moving out of values statements and into procurement, governance, and risk management. Choosing suppliers without credible sustainability practices now creates downstream reporting risk.
This is a structural shift, not a trend.
How Smart Businesses Are Using This Moment
The most resilient organisations are:
- Using ASIC’s free training as a baseline capability tool
- Building internal understanding before reporting pressure peaks
- Selecting suppliers who simplify sustainability reporting
- Treating sustainability as part of operational risk, not branding
They are not overreacting. They are preparing calmly and deliberately.
The Bottom Line
ASIC’s release of free sustainability reporting training marks a clear shift in expectations for Australian businesses.
Even if you are not required to publish a sustainability report:
- Your customers may be
- Your data may be requested
- Your practices may be assessed
The real question is no longer “Do we have to report?”
It is “Can we support our customers’ reporting obligations with confidence?”
Those who prepare early will adapt smoothly. Those who wait will face unnecessary pressure later.
At TechForGood, we support organisations that want to reduce sustainability and compliance risk in practical, evidence-based ways — particularly where technology, data security, and circular economy outcomes intersect.
You can read more about how we support businesses with ASIC’s sustainability reporting expectations and ASRS-aligned readiness on our website.
Because when sustainability reporting becomes mandatory, evidence matters.
