ESG compliance is a boardroom priority in Australia. New regulatory standards and investor expectations are reshaping how organisations measure and report on sustainability. For ESG managers and CFOs, the challenge is meeting strict ESG compliance requirements while producing accurate, transparent disclosures.
The rules are clear. The process can be complex. But with the right frameworks, governance, and ESG compliance software, reporting becomes faster, more consistent, and easier to verify.
This guide breaks down the essentials of ESG compliance reporting in Australia and shows how technology can simplify the process.
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What is ESG Compliance in Australia?
Environmental, Social, and Governance (ESG) compliance in Australia is a regulatory requirement for many sectors, and an expectation for all businesses aiming to build trust with stakeholders.
Key ESG Compliance Requirements
- Corporations Act: Mandates disclosure of material business risks, including climate-related risks.
- ASIC guidance: : Sets expectations for transparent and accurate ESG disclosure.
- APRA standards: Focus on managing financial risks from climate change for regulated entities.
- Modern Slavery Act: : Requires reporting on supply chain risks and actions taken.
- Clean Energy Regulator programs: Oversee emissions and energy reporting obligations.
Common Reporting Frameworks
Australian businesses often use global frameworks to structure ESG compliance reporting. The most recognised include
- Global Reporting Initiative (GRI): Broad coverage of ESG factors with standardised indicators.
- Task Force on Climate-related Financial Disclosures (TCFD): Climate risk governance, strategy, risk management, and metrics.
- International Sustainability Standards Board (ISSB): New IFRS-based sustainability disclosure standards.
What is ESG Compliance in Australia?
ESG goals are more than a compliance exercise. They influence how a business operates, competes, and grows.
Australian ESG regulations are tightening. Setting clear ESG goals ensures the organisation has measurable targets that meet or exceed these standards. Tracking progress makes reporting straightforward and defensible.
ESG goals help identify operational and supply chain risks early. Tracking and reporting on these metrics supports business continuity and protects against regulatory penalties or reputational damage.
Capital providers expect evidence of ESG performance. Regular, transparent ESG disclosure can influence access to finance and borrowing terms.
Targets for emissions, waste, or resource use often uncover inefficiencies. Meeting ESG goals can reduce costs in energy, materials, and logistics.
Customers and partners prefer selecting suppliers based on sustainability performance. Meeting and reporting on ESG goals can secure tenders and contracts.
Accurate ESG reporting builds credibility with employees, customers, and the community. It demonstrates the organisation is accountable for its impact and committed to continuous improvement.
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ESG Compliance Checklist for Australian Mid-Sized Businesses
A clear process keeps ESG compliance reporting accurate and audit-ready. This checklist helps teams move from data collection to disclosure without delays.
- Confirm obligations: Map all ESG compliance requirements for your industry and size. Include sector-specific rules and national ESG regulations.
- Run a materiality assessment: Identify the ESG factors that matter most to your stakeholders and your operations.
- Set ESG goals: Define measurable targets across environmental, social, and governance priorities.
- Build a data governance framework: Decide who collects, checks, and approves ESG data. Create clear workflows.
- Integrate data sources: Pull information from finance, operations, HR, supply chain, and facilities into a single system.
- Apply a recognised reporting framework: Use GRI, TCFD, or ISSB to align disclosures with global best practice.
- Schedule internal reviews: Validate data, check ESG performance trends, and resolve inconsistencies before submission.
- Publish and communicate: Deliver ESG disclosures that meet regulatory standards and build trust with stakeholders.
How Technology Streamlines ESG Compliance Reporting
Manual spreadsheets slow down ESG compliance reporting. They also increase the risk of errors. ESG compliance software changes this.
These platforms bring ESG data into one secure location. That means faster collection, cleaner records, and easier collaboration between finance, sustainability, and compliance teams.
1. Data Integration
- Connects directly to finance, HR, procurement, and operational systems.
- Pulls data automatically through APIs or secure file uploads.
- Standardises formats so environmental, social, and governance metrics can be compared and combined.
2. Centralised Storage
- Holds all ESG compliance data in one secure repository.
- Applies role-based access controls to protect sensitive information.
- Keeps a complete version history for every metric and document.
3. Automated Data Validation
- Runs checks on every data point against predefined rules.
- Flags gaps, outliers, or inconsistencies for review before submission.
- Reduces reliance on manual spreadsheet formulas and macros.
4. Framework Mapping
- Links data fields to multiple ESG compliance frameworks, such as GRI, TCFD, or ISSB.
- Removes the need to reformat or re-enter information for different reports.
- Updates mapping automatically when framework requirements change.
5. Workflow and Approvals
- Assigns tasks to the right team members with clear deadlines.
- Tracks completion status in real time.
- Logs all changes, approvals, and comments for audit purposes.
6. Output Generation
- Produces ESG compliance reports in regulator-ready formats.
- Allows export to PDF, Excel, or XBRL for submission.
- Creates tailored stakeholder reports without altering the source data.
By automating collection, validation, and reporting steps, technology removes the bottlenecks that slow ESG compliance reporting and exposes data to errors.
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ESG Reporting as a Business Driver
ESG compliance reporting can guide operational and strategic decisions when the data is structured and reliable.
- Expose inefficiencies: ESG performance metrics often show where resources are being wasted. Lowering carbon footprint and reducing energy or material use improves both sustainability goals and operating margins.
- Direct investment: ESG disclosure aligned to frameworks such as GRI and TCFD highlights climate-related financial disclosures that matter to regulators and investors. These insights support capital allocation that strengthens ESG compliance requirements.
- Elevate market position: Consistent ESG compliance certification builds credibility in supply chains where sustainability credentials are part of procurement. This strengthens stakeholder engagement and satisfies stakeholder expectations.
- Improve governance: ESG regulations require transparent governance practices. Centralised ESG compliance software gives boards and executives accurate, auditable data for corporate governance decisions.
- Fuel product and service innovation: Materiality assessment outcomes can reveal unmet market needs, guiding ESG strategy and creating offerings that align with sustainability goals.
Deliver Transparent ESG Disclosure and Comply with Regulations
Organisations that integrate ESG compliance software into their operations simplify ESG regulatory compliance, reduce reporting cycles, and meet ESG disclosure standards without unnecessary complexity.
At Planet6, we can provide the tools you need to meet your ESG goals and achieve ESG compliance certification. The process is faster. The results are verifiable. The data is audit-ready.
Book an ESG compliance consultation with our sustainability experts and start streamlining your business ESG reporting and compliance standards.
Strengthen ESG strategy. Report with confidence.
ESG Compliance Australia FAQ
ESG compliance is the process of meeting regulatory, industry, and stakeholder requirements for reporting on environmental, social, and governance performance. It involves measuring key ESG factors, aligning with recognised frameworks such as the Global Reporting Initiative (GRI) or Task Force on Climate-related Financial Disclosures (TCFD), and submitting accurate, verifiable disclosures to regulators, investors, and the public.
Yes. Sustainability reporting became mandatory in Australia on January 1, 2025. Australian businesses that meet certain criteria must prepare annual sustainability reports. A full list of the types of entities that must prepare these reports can be found here.
Mid-sized businesses can meet ESG compliance requirements by:
- Identifying applicable ESG regulations in Australia, such as ASIC disclosure guidance, APRA climate risk standards, and the Modern Slavery Act.
- Conducting a materiality assessment to prioritise ESG factors most relevant to the business and stakeholders.
- Setting measurable ESG goals with clear performance indicators.
- Establishing a governance framework for ESG data collection, validation, and approval.
- Using recognised reporting frameworks (GRI, TCFD, ISSB) to structure ESG disclosures.
- Implementing ESG compliance software to automate workflows, improve data accuracy, and maintain audit trails.
- Reviewing ESG performance regularly and updating reporting processes as regulations evolve.
ESG compliance certification offers:
- Independent verification that an organisation’s ESG disclosures meet recognised standards.
- Increased credibility with investors, lenders, customers, and supply chain partners.
- Easier access to tenders or contracts where sustainability performance is a selection criterion.
- Stronger corporate governance through verified data and processes.
- Enhanced stakeholder engagement by demonstrating measurable progress on sustainability goals.
ESG compliance software streamlines reporting by:
- Integrating data from finance, operations, HR, and supply chain systems into a centralised platform.
- Standardising data formats and mapping metrics to multiple ESG reporting frameworks at once.
- Automating data validation to identify gaps, anomalies, or errors before submission.
- Assigning tasks, tracking progress, and maintaining a complete audit log for every change and approval.
- Generating regulator-ready ESG compliance reports in formats such as PDF, Excel, or XBRL without re-entering data.
- Updating framework mappings when ESG regulations or disclosure requirements change, ensuring continued compliance without manual rework.