4 mins read
What’s ahead for Australia?
Australia’s sustainability and ESG regulatory landscape is entering a significant new phase. From 2026, a broader group of businesses will be subject to strengthened sustainability reporting, due diligence and assurance expectations, marking a shift from voluntary disclosure to mandatory, verifiable practice.
Here’s what’s ahead and what it means for your organisation.
Mandatory ESG Assurance
What’s changing: From the 2025–26 reporting year, large entities will be required to undertake mandatory ESG due diligence, with medium-sized organisations following from 2026–27.
What this means: Businesses will need to conduct ongoing ESG risk assessments, embed them into day-to-day operations, and demonstrate how ESG risks are identified, managed and monitored. In many cases, this will involve independent verification or third-party assurance over ESG disclosures.
Why it matters: These changes are designed to move sustainability out of standalone reporting and into core governance, risk and control frameworks, supported by phased-in mandatory assurance to improve credibility and consistency.
Climate-Related Financial Disclosures (CRFD)
What’s changing: Australia’s Climate-Related Financial Disclosure regime continues to expand. While large businesses have already begun reporting (from 2024), medium-sized enterprises will be brought into scope from 2026.
What this means: Organisations will be required to disclose climate-related risks and opportunities, including governance arrangements, risk management processes, transition planning and relevant emissions data, aligned with the Australian sustainability standards.
Why it matters: Climate risk is increasingly recognised as a financial risk. Integrating climate considerations into financial planning and public disclosures will be critical to meeting regulatory expectations and maintaining stakeholder trust.
Modern Slavery Act Reforms
What’s changing: Proposed reforms to Australia’s Modern Slavery Act are expected to be phased in from 2026, strengthening reporting obligations and enforcement mechanisms.
What this means: Reforms are likely to introduce more rigorous and standardised reporting requirements, mandatory due diligence, potential monetary penalties, and enhancements to the public modern slavery reporting repository.
Why it matters: Businesses will need stronger systems to identify, assess and address modern slavery risks across their operations and supply chains, supported by clear evidence and improved governance processes.
What businesses should do now
With these reforms converging in 2026, preparation is key. Reach out to our team of sustainability assurance experts to help you assess your reporting requirements for your business.
Organisations should:
Assess whether they fall into upcoming reporting cohorts
Review ESG, climate and supply chain risk management frameworks
Strengthen data collection, controls and documentation
Begin planning for independent assurance and verification
The shift is clear: sustainability reporting in Australia is becoming mandatory, auditable and embedded into business governance. Acting early will help organisations manage risk, reduce disruption and build confidence ahead of the 2026 deadlines.
Reach out to our team of sustainability assurance experts to help you assess the right sustainability solutions for your business.
Why choose Sustainability Assurance with Intertek SAI Global?
Gain confidence in your sustainability and climate disclosures with an assurance partner that strengthens credibility, reduces risk and supports long-term business resilience.
What this means for your organisation
Confidence backed by global expertise. Access a world-class network of sustainability and technical specialists who deliver solutions tailored to your business and industry.
Trusted, accredited assurance: Independent, accredited verification of GHG emissions and sustainability data to support regulatory compliance and stakeholder trust.
Stronger risk management across your value chain: Deep expertise in supply chain risk, ESG assurance and regulatory reporting to help identify gaps, manage risk and protect reputation.
Support at every stage of your journey: Flexible engagement models that meet you where you are, whether you’re starting out or advancing your climate and sustainability reporting maturity.