Australian Parliament Passes Law to Begin Mandatory Climate Reporting in 2025

Australian Parliament Passes Law to Begin Mandatory Climate Reporting in 2025 🌏

Are you ready? If not, don’t worry, we are. Clients of Optima Technology are primed to provide accurate and independently validated data for climate reports, that the Board of Directors can confidently sign and approve. Read on to find out more about your new obligations.

As we all expected, Australia’s House of Representatives has just passed the Treasury Laws Amendment Bill, paving the way for mandatory climate-related reporting for large and medium-sized companies starting in 2025.

This monumental change aims to identify and mitigate climate-related risks due to greenhouse gas emissions across the value chain.

Starting in January 2025, public and large proprietary companies that have over 500 employees, revenue over $500M, or assets over $1B will be required to disclose their climate impact. 

Medium-sized companies will follow suit in July 2026, while smaller companies will join from July 2027.

The legislation also includes a phased approach to Scope 3 emissions reporting, granting companies an extra year to disclose their indirect value chain emissions and offering three years of limited litigation protection concerning these disclosures.

In order to comply with the new climate reporting law, measuring and verifying accurate emissions data will be of critical importance for Australian businesses. 

That’s why, at Optima Technology we specialise in helping our clients gather accurate and audit-ready emission data covering both direct and indirect emissions, very cost effectively. 

High quality validation is even more important now. Optima validates 100% of your energy data (others often spot check 10%). Optima also validates across multiple data points and dimensions (others tend to use a single dimension).

This is why we can confidently claim that Optima data is high quality and audit ready. Why else should you care about that? Use the wrong data and you may be subject to claims that you have underreported your emissions with the associated reputational and legal consequences. If errors result in overreporting, you may end up paying too much for carbon offsets that are not necessary. 

If you have any questions about the new climate legislation, please complete our Contact Us form and we will have back to you straight away.