Australian governments require public sector entities to disclose climate-related financial risks
NSW is first state to mandate climate disclosures for public sector entities, aligned with ASRS, effective from 2024-25.
Australian governments are taking significant steps to enhance transparency and accountability in addressing climate-related financial risks. New South Wales (NSW) is leading this movement by mandating that NSW public sector entities disclose their climate risks and opportunities, aligning with Australian Sustainability Reporting Standards (ASRS). Starting from the 2024-25 financial year, these disclosures will help ensure that NSW public sector entities are actively considering and managing their environmental impact.
NSW Treasury's TPG24-33 framework sets out clear guidelines for these disclosures, focusing on four key areas aligned to the ASRS: governance, strategy, risk management, and metrics and targets. Entities must detail their oversight processes, strategic responses to climate risks, risk management practices, and performance against climate-related targets. Importantly, while the first-year emphasis will be on qualitative data, there is an expectation that more quantitative information will be incorporated over time, reflecting a growing maturity in climate-related reporting.
This initiative is not just about compliance; it's about fostering a culture of sustainability and proactive risk management and supporting action on climate. By making these disclosures, NSW public sector entities can better prepare for future challenges, contribute to government climate goals, and build trust with stakeholders, including community members, investors, and policymakers.
Download the publication now to stay ahead in managing climate-related financial risks and seize the opportunity to lead in sustainability.
