Climate reporting deadline is 30 June — what should businesses do next?

The sustainability reporting period is closing 30 June alongside financial data. This is an important milestone, but the bigger challenge for Australian businesses is what comes after the disclosures are delivered in organisations’ general-purpose financial reports.

Many organisations are still approaching sustainability reporting as a compliance exercise and missing out on the value that can be created. The businesses that will gain the most value are those using it to better understand how energy, climate risk and operational performance affect their future competitiveness.

Climate reporting provides visibility into where energy is being used, where inefficiencies exist, where costs can be reduced and where climate-related risks could affect future performance. Organisations that take that broader view will gain more than compliance. They’ll be better positioned to improve efficiency, strengthen resilience and make more informed business decisions.

As reporting requirements mature and assurance expectations increase, businesses will need greater confidence in their data. The organisations still relying on spreadsheets and fragmented processes face greater risks of errors, as spreadsheets are not fit for purpose to provide the transparency and rigour now expected. The organisations building digital foundations that connect energy, operational and sustainability data in one place are seeing the benefits of both accuracy, auditability and optimisation. Centralising data enables not just better reporting, but also monitoring, control and optimisation, which means lower energy use, lower costs and, where energy is concerned, lower emissions.

At a time when many businesses are managing rising costs and energy price pressures, reducing energy consumption remains one of the most effective ways to improve performance. The same applies to optimisation. Improving how buildings, operations and assets perform is not about chasing sustainability targets for their own sake. It’s about building a more efficient, resilient and financially sustainable organisation.

The businesses that will be best placed for the future are those that use sustainability reporting to improve how they operate, not simply to satisfy a reporting requirement.

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