Not only is mandatory sustainability reporting looming for the industrial sector, but regulators are also increasingly embracing digital taxonomies.
Our regular newsletter aims to help you navigate the evolving landscape by bringing you the latest information and digital tools to help you stay a step ahead on sustainability reporting, compliance rules, climate and nature disclosures, transition planning, scenario analysis and more.
In this edition we cover new GRI standards, the IFRS taxonomy release and Australia’s progress towards mandatory climate reporting. If you have questions or need more information, please get in touch.
In this edition
NEWS
Digital tools essential to streamline GRI reporting
After seeking input on its planned digital reporting taxonomy from specialists in XBRL – a global standard for exchanging business data – GRI has stressed the critical importance of digital tools to report sustainability metrics in a structured format that can be easily shared, compared and analysed.
“Digital tools are increasingly important in addressing an organisation’s need to disclose detailed information on their sustainability impacts. A fully digital taxonomy enables computer-readable report formats that allow switching among various reporting frameworks and regulatory requirements, [and makes] sustainability data more accessible, and facilitates faster and lower cost reporting practices.”
With GRI and many global frameworks increasingly embracing digital taxonomies, spreadsheets and manual data processes will no longer satisfy compliance requirements and market expectations.
IFRS Sustainability Disclosure Taxonomy published
The International Financial Reporting Standards (IFRS) is a set of global accounting standards for financial reporting. In April 2024 the International Sustainability Standards Board (ISSB) issued the IFRS Sustainability Disclosure Taxonomy to reflect sustainability-related financial information (IFRS S1) and climate-related disclosures (IFRS S2).
The IFRS taxonomy enables machine-readable tagging of sustainability information, such as risks and opportunities, in financial reports. This facilitates streamlined data extraction, comparison and analysis by investors and stakeholders. It is designed to benefit stakeholders including:
- Industrial operations, that can implement digital reporting efficiently and cost-effectively
- Report users, who can access and analyse sustainability data more easily
- Regulators, who require digital reporting for compliance
The final XBRL files and supporting materials are available here: IFRS Sustainability Disclosure Taxonomy 2024. If you need technical or advice on your next steps, contact our team.
Mandatory climate reporting a step closer
While still yet to be finalised by Treasury and by the Australian Accounting Standards Board (AASB), the coming mandatory climate-related reporting is a step closer.
AASB released the Exposure Draft ED SR1 Australian Sustainability Reporting Standards – Disclosure of Climate-related Financial Information which closed for comment on 1 March 2024. The AASB is currently reviewing feedback and has published its current board papers.
Meanwhile, proposed legislation to amend the Australian Securities and Investment Commission (ASIC) Act 2001 and Corporations Act 2001 closed for consultation on 9 February 2024. The Treasury Laws Amendment Bill 2024 was introduced to the House of Representatives on 27 March 2024, and passed on 6 June 2024. If the Bill passes the Senate (Second reading moved on 24 June 2024), mandatory reporting will begin for financial years starting on or after 1 January 2025.
ASIC will oversee the climate reporting regime once it’s enacted. In a recent speech, ASIC Chair Joe Longo urged organisations to prepare for mandatory reporting immediately:
“And this is a crucial point: you have to do this now. It’s simply not an option to put this off until after legislation has passed, and then scramble to comply. You have to figure out how you’re going to marshal data, support and capabilities and start keeping the necessary records now – today.”
CSRD in the Spotlight
Your questions answered
What is the Corporate Sustainability Reporting Directive (CSRD)? How does it impact industrial operations? When does it apply? Who to? How can technology help meet your reporting and compliance obligations? We’re here to help with the answers and solutions to make sure you’re ready.
ISSB IN THE SPOTLIGHT
Are you ready?
The International Sustainability Standards Board (ISSB) standards will become the new global norm for reporting sustainability metrics. In this guide, we explain ISSB requirements, how they are likely to impact industrial organisations, what digital tools are available and how to prepare step by step.Solving Problems
Which Sustainability Tracker (ST) package is right for you?
Whether you are just starting your sustainability journey or already have sustainability reporting and compliance processes and targets in place, ST has a flexible package for every stage from ticking compliance boxes to advanced ESG capabilities.ISS is here to help you understand and meet your obligations
Accurate sustainability reporting and compliance cannot be managed with manual, outdated, error prone and easily manipulated spreadsheets. Digital tools are required for transparency, auditability, automation and digital taxonomy compliance.
Stay ahead of fast-evolving sustainability compliance with Sustainability Tracker (ST), a proven sustainability analytics solution designed for complex industrial processes, backed by experts to help you understand your reporting obligations, mitigate risks and meet sustainability targets.
Learn how ISS can help you track and analyse your sustainability indicators, and minimise emissions, energy, water and waste across your supply chain.
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About the Authors
This article has been collaboratively authored by the Industrial Sustainability Solutions team and fact-checked and authorised by Managing Director and industry specialist John Vagenas.
