Sustainability in 2026: what's next for Australian businesses?

Australia’s sustainability landscape is evolving at its fastest pace yet. Encouragingly, we’re seeing an increased shift from climate ambition to climate action. With mandatory climate-related financial disclosures well underway, more organisations are moving beyond preparation to actively embedding sustainability into their business strategy. It’s no longer just about reporting; it’s about using these frameworks to drive meaningful progress, build resilience and unlock long-term value.

From readiness to implementation

In 2025, many organisations focused on preparing for new regulatory requirements under the Australian Sustainability Reporting Standards (ASRS). That made sense; it was the first year of a complex and evolving process. But as we head into 2026, I expect the focus to move beyond compliance.

With many of our clients, we’re now talking less about how to report and more about what is actually being reported — about emissions reduction, risk management, and the real-world outcomes behind the data.

Companies in Group 1 will release their first disclosures in 2026. Those working to calendar-year timelines are already reassessing their first-year approach, while others operating on fiscal years are still in preparation mode. The reality for many has been more complex than anticipated, and spreadsheets have quickly been replaced by integrated platforms like Schneider Electric’s ResourceAdvisor.

A strategic shift at the top

What’s most encouraging is the way climate-related issues are now being considered in boardrooms. Directors are responsible for these outcomes in the same way they are for financial performance. That responsibility is accelerating cultural change and bringing sustainability into core strategic discussions.

There are challenges, of course. Resourcing continues to be an issue, especially for teams working across multiple reporting regimes. I’ve also seen capability gaps and a natural hesitance from leaders navigating new requirements alongside competing priorities. Australia simply does not have enough sustainability expertise to employ this expertise in every company directly that needs it.

Digital value chain software solutions such as Zeigo are supplementing the traditional consultant-led approach and democratising progress to ensure small and medium enterprises are just as prepared as those that can afford to hire external experts or employ them directly.

But there’s also strong momentum. Many organisations are starting to look beyond the reporting activity and into how they can act on the insights they’re gathering, whether that’s through transition planning, investment prioritisation, or emissions reduction projects.

When companies align their reporting, planning and implementation, they unlock not just compliance, but competitive advantage. At Schneider Electric, we’ve supported clients through that journey, from data management and risk assessment to net zero strategy and action. These works are ongoing, with a continuous feedback loop for refinement, reporting, and optimised outcomes.

Technology is no longer the barrier

Looking ahead to 2026, I believe the biggest gains in sustainability won’t come from breakthrough technologies, but from how effectively we implement the ones we already have.

Demand flexibility, microgrids, battery energy storage systems (BESS), fleet electrification, renewable power purchase agreements, and advanced supply contract risk management are already helping organisations tackle emissions, improve energy resilience and strengthen financial performance. Yet many businesses are only scratching the surface of what these can do.

AI-powered platforms like EcoStruxure ResourceAdvisor are unlocking better, faster decisions by turning complex data into actionable insights. Electrification is gaining momentum, supported by government decarbonisation plans, while energy productivity and efficiency — doing more with less — remains one of the most important and accessible levers for reducing emissions and operating costs.

For businesses, the takeaway is clear: you don’t need to wait for the next innovation cycle. Most of the tools needed to drive sustainability progress and better commercial outcomes in the near term are already available. The opportunity lies in selecting the right mix of technologies, sequencing their rollout effectively, and focusing on execution. Done well, this approach can accelerate decarbonisation, unlock efficiencies and create long-term financial resilience.

From what I’ve seen, the organisations progressing fastest tend to have three things in place: a trusted end-to-end advisor, a reliable energy and ESG data platform, and publicly stated targets backed by a credible transition plan.

Looking ahead

As we approach 2026, I see a mood of cautious optimism. Inflation and cost pressures will remain, and some organisations will take a compliance-first approach; this is a natural starting point. But for others, sustainability will be increasingly recognised not as an obligation, but as a path to resilience, growth and leadership.

The next phase isn’t about perfection, it’s about progress. And that progress is well underway.

Image credit: iStock.com/witsarut sakorn