Australia’s move toward mandatory sustainability disclosure is entering its implementation phase, with the country’s corporate regulator shifting focus from rulemaking to capability building across the market. The Australian Securities and Investments Commission has released the first set of educational modules designed to help smaller companies and report preparers understand and adapt to the country’s new climate reporting obligations. The materials mark an early step in preparing businesses for Australia’s sustainability reporting regime, which introduces new director duties and reporting expectations under the Corporations Act 2001. While the legal requirements are targeted primarily at large and listed entities, ASIC has made clear that small and medium-sized enterprises embedded in supply chains will also feel the impact, particularly as data requests and risk disclosures flow downstream.

The learning series has been developed in collaboration with the Australian Accounting Standards Board, ensuring that the guidance aligns with the standards architecture underpinning Australia’s climate disclosure framework. ASIC has positioned the modules as practical tools for companies encountering sustainability reporting for the first time, rather than technical compliance manuals. ASIC Commissioner Kate O’Rourke said the regulator is responding to widespread uncertainty among smaller firms. Many businesses, she noted, are unsure how climate reporting requirements will affect them, even if they are not directly subject to mandatory disclosure. The education initiative is intended to build baseline understanding of climate risk and opportunity so companies can engage more effectively with customers, lenders, and investors that are required to report. ASIC has emphasized that the objective extends beyond compliance. By strengthening climate literacy, the regulator aims to help companies better identify and manage risks that could affect operations, assets, and long-term viability.

Read more: Clarity AI Survey Shows How Climate Risk, Regulation, and AI Are Redefining Investment Strategy

The first three modules, now available in PDF form, focus on foundational concepts. The opening module introduces the sustainability reporting framework and explains how climate disclosures fit within existing corporate governance and financial reporting obligations. It is designed to orient directors, finance teams, and advisors to the legal context in which climate reporting will sit. The second module steps back to establish a shared understanding of climate change itself, providing report preparers with essential scientific and conceptual grounding. This common baseline is intended to reduce confusion and inconsistency as companies begin assessing climate-related impacts. The third module turns to physical climate risks, an area of increasing relevance for Australian businesses exposed to heat, flooding, bushfires, and extreme weather. The guidance explores how physical risks can affect asset values, business continuity, and insurance availability, setting the stage for more detailed disclosures in future reporting cycles.

ASIC has confirmed that the remaining five modules will be released in stages. Modules four and five are expected by the end of the month, while the final three modules are scheduled for publication in the first quarter of 2026. Later content will move beyond foundational risk awareness toward climate-related opportunities and emissions accounting. These topics will become increasingly important as Australian companies prepare for more detailed disclosures, including emissions data and transition planning, which are expected to come into force in 2026. By sequencing the content, ASIC is signaling that climate reporting capability must be built progressively, starting with understanding risks before moving into measurement and strategic response.

Explore OneStop ESG Marketplace: ESG reporting

To expand reach and usability, ASIC plans to convert the full eight-module series into an interactive learning format in early 2026. This approach reflects recognition that sustainability expertise varies widely across the market, particularly among SMEs with limited internal resources. In parallel, the regulator intends to host workshops to support companies as they engage with the new requirements. Further details on these sessions are expected to be released closer to the launch of the interactive platform. Together, the modules and workshops are intended to shorten learning curves and reduce last-minute compliance pressure as reporting timelines approach.

For boards and senior management, ASIC’s initiative underscores that sustainability reporting is becoming a core governance issue, not a niche disclosure exercise. Even companies outside the formal reporting thresholds will need to respond to climate-related data requests from customers, financiers, and partners that are subject to mandatory disclosure. For investors and lenders, the education rollout points to gradual improvements in the consistency and credibility of climate information across Australian markets. Over time, this should strengthen risk assessment and comparability, particularly for businesses operating in climate-exposed sectors. More broadly, ASIC’s move reflects a global regulatory trend. As sustainability reporting regimes mature, regulators are increasingly focused on execution and market readiness. The effectiveness of Australia’s climate disclosure framework will depend not only on the rules themselves, but on how well companies of all sizes are supported in understanding and applying them.

Explore ESG Solutions on our marketplace - OneStop ESG Marketplace.

Keep abreast of the top ESG Events on OneStop ESG Events.

OneStop ESG Educate: Your go-to source for top ESG courses and training programs tailored to your needs.

Stay informed with the latest insights on OneStop ESG News.

Discover meaningful career opportunities on OneStop ESG Jobs.