Early insights into Wave 1 of Australian climate reporting

Drawing on our review of early reports with 31 December year-ends, this publication highlights key insights, emerging practice and practical learnings from the first reporting cycle.

Key observations are:

• All entities identified climate-related risks and the majority disclosed climate-related opportunities, with the number of climate-related risks and opportunities (CRROs) ranging from 1 to 12. Most entities used structured tables to link CRROs to time horizons, strategic responses and financial effects, improving navigability
• Scenario analysis is central to assessing climate resilience. Most entities relied on established reference pathways from the Intergovernmental Panel on Climate Change (IPCC), Network for Greening the Financial System (NGFS) or International Energy Agency (IEA), with over half disclosing more than the minimum required scenarios. Approaches ranged from qualitative assessments to more advanced quantitative modelling
• Quantification practices will mature. Over half of entities provided some level of quantified information on anticipated financial effects of CRROs, while others focused on qualitative explanations supported by key numerical inputs or assumptions, sensitivities or expected capital investment plans
• All entities reported Scope 1 and 2 emissions, and 40% voluntarily disclosed Scope 3 emissions despite the opportunity for first-year relief. A majority disclosed climate-related targets, reflecting maturity in emissions transition planning
• Presentation approaches will evolve. Reports averaged 33 pages in length and varied widely in structure, with clearer reports using precise language, structured layouts and tables to improve readability.

Download the publication to learn more.

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