Corporate Sustainability in a Post-Election Australia – Part I

Brian Kraft

Director

Australia

Table of Contents

• 1. Climate Reporting Here to Stay
• 2. Director Accountability Rising
• 3. Safeguard + Fuel Credits In Focus
• 4. Ambition on National Targets
• 5. Nature and Biodiversity Action

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We recently hosted a webinar exploring the outcomes of the federal election and what they mean for corporate sustainability in Australia. Labor’s resounding win has cemented the country’s trajectory on climate and sustainability, and the election result marks Australia as a country willing to counter, at least to some degree, the anti-ESG legislative trend that we’re seeing come out of places like the EU and the US. For senior leaders, now is not a time for hesitation or hoping things might change; it’s time to act. With the government’s renewed mandate and a likely increase in ambition through Australia’s 2035 target under the forthcoming Paris-aligned NDC, the direction is clear: decarbonisation, disclosure, and accountability are the way forward for any future-focused business. Here is our Part I of the key takeaways from our experts on corporate sustainability in a post-election Australia.

1. Mandatory Climate-related Reporting Is Here to Stay

The most immediate message from the panel: don’t delay. As Director Brian Kraft put it, “If you’ve been waiting around to see the election results before launching your ASRS climate risk program it’s definitely time to press go.” The Australian Sustainability Reporting Standards (ASRS) are locked in.

Key points:

• Now is the time for all entities, including Group 2 and 3 reporters, to begin preparing, start with a gap assessment to understand where you are versus where you need to be. Develop a roadmap to close those gaps and assess how disclosure-ready your organisation is.
• Consider running a practice disclosure in the lead-up years to build internal capability and confidence in your reporting.
• There is growing potential for a broader, mandatory sustainability reporting regime, beyond just climate, to align with international standards and maintain global competitiveness. While AASB S1 (general sustainability disclosure) is not yet mandated, it’s increasingly seen as foundational and likely to come into focus. This includes topics like nature and social inequality (potentially S3, S4) in line with the Taskforce on Nature Related Disclosures (TNFD) and the proposed Taskforce on Inequality and Social-related Financial Disclosures (TISFD).

If you’re trying to make decisions, financial decisions on a on an organisation, it’s not just climate that’s affecting. The financial viability of an organisation. There’s this broad swath of sustainability issues that impact your organisation.”

Brian Kraft, Director, Anthesis

2. Director Accountability Is Rising

As Emily Turnbull, Partner at Allens, highlighted, the legal liability landscape is shifting. Under ASRS, directors will need to declare compliance under the Corporations Act. While a lower threshold applies before 2028, businesses should already be supporting boards.

Key points:

• Targeted training for directors to build understanding of disclosure expectations, including key focus areas when reviewing climate reports and interpreting regulatory requirements.
• Consider voluntary top-up audits, management representation letters, or legal opinions to give directors confidence in signing declarations, particularly in the early reporting years ahead of mandatory assurance in 2030.
• Strengthen climate and sustainability governance by reviewing roles, processes, and risk management systems to ensure disclosures are reliable, well-supported, and aligned with evolving expectations.

Directors face potential liability, which is enforced as a civil penalty provision under the Corporations Act. Penalties are significant and, unlike some other ESG-adjacent regimes, ASIC has a broad enforcement toolkit, it can seek disqualification orders, issue infringement notices, and pursue court action for non-compliance. ASIC’s Regulatory Guide 280 outlines the ethics approach to enforcement, and it provides some detail on how directors might satisfy their duty of care and diligence.

ASRS reporting is coming in through the Corporations Act. That means it’s not just a sustainability issue, it’s a legal obligation for directors.”

Emily Turnbull, Partner, Allens

3. Safeguard Mechanism And Fuel Credits In Focus For Large Emitters

With the ALP securing a rare back-to-back win, companies now have 3–6 years of policy certainty to invest in serious decarbonisation, not just lighting upgrades, but industrial transformation.

We’re talking transformational projects, huge capex, R&D, and long lead times. That only happens with policy stability.”

Matt Drum, Managing Director, Anthesis Australia

The reformed Safeguard Mechanism is showing impact, with 11 MtCO₂e reduced in its first year of reformed baselines, however 80% of that reduction still came from offsets. Companies must start planning how to transition away from over-reliance on ACCUs and embrace operational emissions reductions.

Key points:

• The 4.9% annual reduction requirement under the Safeguard is significant. Sustainability teams need clear, forward-looking strategies as baseline headroom narrows.
• Proposed changes to Safeguard thresholds could bring more facilities into scope, increasing coverage and levelling the playing field across sectors.
• The Fuel Tax Credit currently acts as a counterweight to carbon pricing. Potential reform may shift the cost-benefit equation for diesel-reliant operations.
• Strengthened R&D tax incentives for decarbonisation could support investment in low-carbon technologies and reduce compliance burden over time.
• A future Carbon Border Adjustment Mechanism may impact emissions strategy for export-facing sectors and will need to align with domestic carbon policy.

4. Expect More Ambition on National Targets

Australia’s next 2035 Nationally Determined Contribution (NDC) under the Paris Agreement has the potential to land at 65–75% emissions reduction from 2005 levels which would be a steep step up from the current 43% target.

Key points:

• An ambitious NDC will flow onto Australian corporations who will need to potentially accelerate decarbonisation in their own operations as well.
• Future made in Australia is expected to channel significant public investment into the clean economy, backing industries like green steel and critical minerals. Positioned as Australia’s answer to the U.S. IRA, it aims to boost competitiveness in global low-emissions markets and will likely be central to the government’s climate and industrial strategy and new NDC reduction target.
• Expect a mix of stronger incentives and compliance measures. On one side, increased grant funding, enhanced R&D tax offsets and industry support; on the other, tightening carbon pricing, fuel efficiency standards and pressure to move beyond offsets toward genuine abatement.

5. Nature and Biodiversity Will Follow Climate

Australia’s commitment to the Global Biodiversity Framework has sparked a wave of national initiatives, from the Nature Repair Market to expanded biodiversity protections and Indigenous stewardship programs. While these efforts were introduced under the current government, their continuation will depend on post-election policy momentum. As noted in the discussion, “we’ll see a continued commitment towards these, so we can achieve our GBF target.” At the same time, nature-related disclosures are expected to be the next major regulatory shift, following the global momentum from COP15 and frameworks like the Taskforce on Nature Related Disclosures (TNFD).

Businesses should begin assessing their impacts on nature and building readiness for future reporting and investment expectations.

Key points:

• The Nature Repair Market has launched with its first project registered. A national registry will consolidate biodiversity, carbon, and energy certificates, laying the groundwork for an integrated environmental market or Unit and Certificate Registry.
• Momentum is building for mandatory nature-related disclosures, following international trends and frameworks like the TNFD. Sustainability teams should prepare for increasing expectations on nature risk reporting and begin integrating nature risk into governance.
• Governance and legal scrutiny are rising. Directors may be expected to consider nature risks as part of their duty of care, mirroring developments in climate-related financial disclosures.
• Nature and climate are no longer separate issues. Leaders should pursue integrated approaches and consider how insetting or voluntary frameworks can support readiness, credibility and impact.

The nature crisis is a business crisis. It’s only a matter of time before nature considerations become mandatory.”

Marnie Telfer, Director, Anthesis

Need Help to Understand the Post-Election Landscape and How to Progress?

Anthesis are technical experts and trusted advisors to some of the world’s most well-known companies, with over a decade of experience. We’re here to guide you through the transition, solving sustainability challenges and helping you leverage opportunities from start to finish. Our solutions span the full sustainability spectrum, offering a cohesive and actionable path to transformation and resilience.

Call us for a chat on +61 3 7035 1740 or reach out to our experts via email or the form below.