ASIC Commissioner Kate O’Rourke has released the first sustainability reporting modules to help smaller companies meet new climate obligations.
What’s happening: ASIC has released the first three of eight educational modules to help smaller companies and report preparers understand Australia’s new sustainability reporting requirements.
Why this matters: Small and medium-sized companies that supply larger reporting entities will need to understand climate-related obligations as they face growing pressure to provide emissions data.
The Australian Securities and Investments Commission has launched the first phase of an educational program designed to help smaller companies navigate the country’s new sustainability reporting framework, releasing three modules that break down the foundational concepts behind climate-related financial disclosures.
ASIC partnered with the Australian Accounting Standards Board to develop eight learning modules on the sustainability reporting framework. The first three modules became available in PDF format on 15 December.
ASIC Commissioner Kate O’Rourke said the regulator recognises the concerns many smaller companies have about the new requirements.
“We recognise many smaller companies may be concerned about what the sustainability reporting requirements mean for them,” Commissioner O’Rourke said. “ASIC is committed to helping industry build the capability required to meet these important obligations.”
The sustainability reporting requirements are new for Australia and impose obligations on directors and reporting entities, but can also affect small and medium-sized companies that support reporting entities.
“Our new educational materials are designed to help stakeholders identify the climate-related risks and opportunities that may impact them,” Commissioner O’Rourke said. “These foundational steps are key to meeting the sustainability reporting requirements.”
The first group of reporting entities is required to prepare sustainability reports for financial years commencing on or after 1 January 2025. The second and third groups of reporting entities are required to prepare annual sustainability reports for financial years commencing on or after 1 July 2026 and 1 July 2027 respectively.
Module 1 sets out how stakeholders should engage with the materials and introduces the basics of the new sustainability reporting requirements in the Corporations Act 2001. Module 2 covers the basics of climate change, while Module 3 covers climate-related physical risks.
ASIC will publish Modules 4 and 5 by the end of the month. Modules 6, 7 and 8 will be released in the first quarter of 2026. The topics to be covered in the later modules include climate-related opportunities and an introduction to emissions accounting.
While the educational modules were designed for smaller reporting entities and small and medium-sized companies that are suppliers to reporting entities, ASIC expects the resources will be helpful to any report preparer new to the sustainability reporting requirements as well as other stakeholders in the climate reporting ecosystem.
To encourage higher industry engagement with the sustainability reporting requirements, ASIC will also provide more flexible delivery of content by offering all eight modules in an interactive format in the first quarter of 2026.
The regulator will also hold a series of workshops supporting the release of the educational modules. Details on the workshops will be made available in early 2026.
The move comes as pressure mounts on smaller businesses to demonstrate their sustainability credentials. Xero Managing Director for Australia and New Zealand Angad Soin said earlier this year that major businesses are proactively driving the push toward decarbonisation and sustainability reporting.
“Despite uncertainties surrounding the future of carbon reporting legislation in Australia, major businesses are proactively driving the push toward decarbonisation and sustainability reporting,” Mr Soin said at the time of Xero’s partnership with Sumday to provide SMEs with carbon accounting tools. “Our goal is to empower small businesses to put themselves in the best position to retain existing customers, but also capitalise on new business opportunities.”
The educational modules represent part of ASIC’s broader strategy to support the rollout of mandatory climate-related financial disclosures in Australia. The regulator published Regulatory Guide 280 Sustainability Reporting in March 2025 to help entities understand their obligations under the new regime.
Under the framework, entities required to prepare an annual financial report under Chapter 2M of the Corporations Act and meeting one of the sustainability reporting thresholds under s292A for a financial year are required to prepare a sustainability report containing climate-related financial information.
For more information about the sustainability reporting requirements, refer to Regulatory Guide 280 Sustainability reporting (RG 280) and ASIC article on what small businesses need to know.
Keep up to date with our stories on LinkedIn, Twitter, Facebook and Instagram.
