What Australian Companies Need to Prepare for in 2024

In 2024, we expect to see a decisive shift in perception and action on ESG.

While 2023 brought ESG into the media spotlight, its position on the corporate agenda is going to be even more prominent in the year to come.

With mandatory climate disclosures being introduced, a growing number of companies will be required to comply with these frameworks and the comprehensive reporting requirements they bring.

This signals a new era for ESG, a lasting and integral aspect of corporate strategies.

In this article, we've put together a summary of some key reporting and compliance changes in train for 2024.

WGEA Reporting Expansion

The Workplace Gender Equality Agency will publish the gender pay gaps for every Australian employer with 100 or more employees on 27 February 2024.

The change is the result of amendments to the Workplace Gender Equality Act 2012 passed by the Federal Parliament in March 2023.

Modern Slavery Reporting

In May 2023, the Attorney-General's Department released results of the statutory review of the Australian Modern Slavery Act 2018. The report proposes 30 changes that, if implemented, would significantly enhance Australia's anti-modern slavery efforts, imposing more rigorous due diligence and reporting obligations on certain companies.

In November 2023, Attorney-General Mark Dreyfus KC MP introduced legislation to establish a Commonwealth Anti-slavery Commissioner. Public consultation on the responsibilities for this role is underway, with a full Government response to the review expected once this process is complete.

With progress already being made in the EU and other jurisdictions towards mandatory human rights due diligence, Australian businesses should prepare for a Commonwealth Act that seeks alignment with these standards.

Mandatory climate-related financial disclosures for Australian companies

In October 2023, the Australian Accounting Standards Board (AASB) released core requirements for Australian Sustainability Reporting Standards, outlining what’s to come for mandatory climate-related financial disclosures.

This leverages the framework launched by the International Sustainability Standards Board and the associated IFRS S1 and IFSR S2 disclosures.

Under the proposal, companies will need to disclose climate-related information as part of their general financial reporting, starting as early as July 2024 for some companies.

The Federal Government’s ascension of the Nature Repair Market Bill in December 2023 is a strong indicator that nature is well and truly on the agenda.

While reporting nature impacts and dependencies is not yet mandatory, all commentary points towards a requirement to disclose nature related risks and opportunities in the immediate future.

We can look to frameworks such as the one developed by the Taskforce on Nature Related Financial Disclosures (TNFD) for an idea of how these standards will take shape.

Edge Impact is currently supporting clients at various stages of their nature journeys, most commonly starting with a bespoke nature-action roadmap before progressing to support client alignment with the TNFD framework.

Preparation is key

Planning for these developments and requirements over the next 12 months will make a significant difference to impacts and opportunities for your business.