Australia’s New Climate Reporting Laws: What They Mean for Small Businesses in Queensland

Australia’s business landscape is about to take another big step toward sustainability.
From 2025, mandatory climate-related financial disclosures will start rolling out across the country.

In Queensland, public sector organisations are already preparing for the change. But even if you run a small business, this is something worth paying attention to - not because you’ll need to report straight away, but because these requirements could start influencing your customers, your suppliers, and even the contracts you sign.

The Three Stages of Climate Reporting

The new rules are being introduced in three phases, based on business size.
Think of them as “tiers” - starting with the biggest players and working their way down.

Group 1: From 1 January 2025

• Revenue of $500 million or more
  
• Assets worth $1 billion or more
  
• 500+ employees
  
• Or already reporting big emissions under the National Greenhouse and Energy Reporting Act
  

This group is made up of large, listed companies - think major banks, energy companies and other household names.

Group 2: From 1 July 2026

• Revenue of $200 million or more
  
• Assets worth $500 million or more
  
• 250+ employees
  

Here you’ll see large private companies, mid-sized listed entities and big super funds.

Group 3: From 1 July 2027

• Revenue of $50 million or more
  
• Assets worth $25 million or more
  
• 100+ employees
  

If you’re in Group 3 and your business has no material climate-related risks or opportunities, you can file a simplified statement instead of a full report.

What the Reports Actually Cover

These disclosures aren’t just about saying you care about the environment - they follow a structured format called the Australian Sustainability Reporting Standards (ASRS). They’re modelled on global standards from the International Sustainability Standards Board, so the content is detailed and specific.

A full climate report includes:

• Governance: How your board and management oversee climate risks and opportunities.
  
• Strategy: How climate change could impact your business model, operations, and financial plans.
  
• Risk Management: Your process for identifying and addressing climate-related risks.
  
• Metrics & Targets: Your greenhouse gas emissions (Scope 1, 2 and in some cases Scope 3), along with any targets you’ve set.
  
• Scenario Analysis: Testing how your business would fare in different climate futures - including a 1.5°C scenario and a “well above 2°C” scenario.

How Reporting Works in Practice

The climate report will form part of your annual report to ASIC. It will also need independent assurance - in other words, an audit - which will be phased in:

• Early years: limited assurance (the auditor checks for anything obviously wrong)
  
• From 2030: reasonable assurance (a full, in-depth audit, like financial statements)
  

These reports are public, so anyone - investors, customers, suppliers - can see them.

What Happens If You Don’t Comply

Once your business is in scope, ignoring these rules isn’t an option.

Non-compliance can lead to civil penalties under the Corporations Act. ASIC will enforce the regime and can act on misleading or incomplete reports.

There is, however, a three-year “liability shield” for certain forward-looking parts of the report, like Scope 3 emissions or scenario planning. During this time, only ASIC can bring legal action - not private litigants.

Why Small Businesses Should Still Pay Attention

Even if your business is well below the size thresholds for mandatory climate reporting, the ripple effects are already reaching smaller operators. Larger clients in scope for the new laws may ask for your emissions data - things like energy use, fuel consumption or travel - so they can complete their own reports. Banks and insurers are starting to factor climate risk into their decisions, meaning you might be asked how climate change could affect your operations before securing finance or cover.

Government tenders are also moving in this direction, with more contracts requiring proof of sustainable practices such as emissions reduction or responsible sourcing. At the same time, customers and partners are becoming more climate-conscious, and are increasingly choosing suppliers who can show genuine action on sustainability.

Some industries are feeling this sooner than others. Construction and manufacturing businesses often face supply chain reporting requests early, while agriculture, food and other climate-exposed sectors are already under pressure to demonstrate climate resilience. Even if you’re not required to report right now, being ready for these conversations can protect - and even grow - your business.

How This Fits Into the Bigger Sustainability Picture

The ASRS climate rules are part of a broader push for sustainability reporting. If your business already does voluntary ESG reporting, holds a B Corp certification, or follows other environmental standards, you might already be collecting some of the data you’d need for climate reporting.

How to Prepare Now (Even If You’re Not Required Yet)

Getting ready for climate reporting doesn’t have to be overwhelming - in fact, starting small can make a big difference. By laying the groundwork now, you’ll be in a much stronger position if and when the rules apply to your business, or if a client or supplier asks you for information.

Here are some practical first steps you can take:

1. Review your contracts for any climate or sustainability clauses
Take a close look at your supplier agreements, customer contracts, and tender documents. Larger organisations often include clauses that require their partners to share emissions data or commit to certain sustainability practices. Understanding what you’ve already signed up to (or might be asked to agree to in the future) will help you plan and avoid unexpected obligations.

2. Start tracking basic environmental data
You don’t need a complex software platform to begin. Start with the basics - your electricity bills, fuel receipts, air travel, and waste disposal records. Having a year or two of historical data will be invaluable if you’re suddenly asked to provide climate information, and it’s much easier to start now than to scramble later.

3. Nominate someone in your team to keep tabs on sustainability matters
Assigning responsibility helps keep this on the radar. It doesn’t have to be someone’s full-time job - it could simply be part of an operations or compliance role. This person can monitor changes in the law, coordinate data collection, and be the go-to contact if clients ask for climate-related information.

4. Create a simple internal climate or sustainability policy
A short, plain-language policy can guide your decisions and signal to stakeholders that you take sustainability seriously. It might outline how you manage environmental impacts, your goals for improvement, and how you respond to climate-related risks. Over time, you can expand and formalise it as needed.

5. Keep an eye on updates to thresholds and reporting rules
Climate reporting requirements are being phased in - and the thresholds could change in the future. Staying informed means you can adjust your preparation and won’t be caught off guard. Following reputable industry updates or working with advisors who track these developments can help you stay ahead.

Where Sprintlaw Can Help

We work with small businesses across Australia to get the right legal frameworks in place for changes like this. That can mean:

• Reviewing and updating your contracts to handle new sustainability requirements from customers or suppliers
• Drafting a tailored workplace policy for your industry
• Helping you set up governance documents so your board or managers can properly oversee sustainability issues
  

Key Takeaways

So, what’s the short version? Here's a quick summary of everything we discussed above.

• Australia is introducing mandatory climate-related financial reporting in three phases from 2025 to 2027, based on business size.
  
• Reports must follow the ASRS standards and cover governance, strategy, risk management, emissions metrics, targets, and scenario analysis.
  
• Public lodgement and independent assurance (audit) are required, with full reasonable assurance from 2030.
  
• Most small businesses are not yet directly in scope, but will feel indirect impacts via supply chains, finance, tenders, and customer expectations.
  
• Preparing now can make future compliance easier - start by reviewing contracts for climate clauses, tracking environmental data, appointing a sustainability lead, creating a simple policy, and staying across legislative changes.
  
• Sprintlaw can help with contracts, policies, governance documents, and compliance advice tailored to your business.
  

If you would like a consultation on the new climate reporting laws, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.