What Australia can learn from New Zealand and Europe on mandatory sustainability reporting

Australia’s mandatory climate-related financial disclosure regime is about to begin. From 1 January 2025, Group 1 entities — those with over 500 employees, consolidated revenue of AUD 500 million or more, or consolidated assets above AUD 1 billion — will be required to report under the new Australian Sustainability Reporting Standards (ASRS). These standards, developed by the AASB, are based on the ISSB’s IFRS S1 and S2, with any Australian-specific deviations clearly marked. Groups 2 and 3 will follow in 2026 and 2027, expanding the scope to smaller listed and large private companies over time.

With mandatory climate-related financial disclosures about to take effect in Australia, many reporting teams are looking to New Zealand and Europe for clues. Here's what we can learn from jurisdictions that have already taken the leap.

Looking across the Tasman: New Zealand is already two years in

New Zealand began mandating climate-related disclosures in 2023. The rules apply to Climate Reporting Entities (CREs), including large listed companies and financial institutions. Their reports follow the Aotearoa New Zealand Climate Standards (NZ CS 1–3), which are rooted in TCFD recommendations, not ISSB — although the XRB has hinted it may consider tighter alignment in the future.

The NZ regime focuses solely on climate. By contrast, Australia is taking a broader sustainability lens from day one, encompassing both climate risks and governance over sustainability-related financial information.

A glance at Europe: first CSRD reports published

In Europe, 2024 marked the first wave of reporting under the CSRD. Thousands of companies — especially listed ones — disclosed against the European Sustainability Reporting Standards (ESRS). Not all EU countries had implemented the directive in time, and the Commission’s Omnibus I package will introduce some relief measures, but the shift is already significant.

The CSRD will also affect foreign companies operating in the EU. From fiscal year 2028, certain non-EU companies with a large EU presence will need to provide consolidated sustainability reporting under the ESRS. 

Learning from those who’ve gone first

New Zealand: a two-stage start, but solid second batch

The first cohort (Jan–Dec 2023 year-end) saw many companies rely on exemptions or partial reporting. But with the second wave now reporting (2023/24 financial years), we’re seeing more complete reports, typically around 50–60 pages, often published as a separate report.

Europe: more scope, more pages, more complexity

European companies must apply double materiality, cover a broader set of ESG topics, and report against hundreds of data points across multiple standards. Reports are usually embedded in the management report (as per the directive), under a dedicated sustainability statement, and often span 80–90 pages or more.

This isn’t “first-time” reporting — but it is the first time it’s standardized

Most listed companies in AU, NZ, and the EU have been reporting on climate and ESG for years — in varying formats and depths. What’s new is the mandatory use of standardized frameworks. This brings new expectations, and new demands on reporting teams.

Where Australia can get ahead: lessons and inspiration

Here’s what the early reports from NZ and the EU reveal — and what Australia can take from them:

• More contributors, less time. Reporting teams are growing, with more internal contributors involved and tighter timelines.
• More data, more sources. Sustainability reporting now requires integrating data from finance, HR, operations, supply chain, and more.
• Content-heavy, with structure needed. The reports contain more text and tables, with metrics on risks, impacts, progress, and KPIs — often presented in a semi-graphical way.
• Clarity and compliance. Content indices and traceability tools are becoming vital to help teams check coverage, ensure compliance, and guide readers.
• Microsites and ESG data centers. Some leading companies now publish interactive microsites that enhance online engagement. These often include dedicated ESG data centers, making key performance data more accessible, improving transparency, and helping stakeholders find the information they need quickly.
  

How Tangelo helps companies meet these new challenges

One-third of our client base is in Australia and New Zealand, including New Zealand-based companies that have successfully used Tangelo for their climate-related disclosures.

And more than 50 of our clients in the EU have now reported under the CSRD, giving us deep insight into what works when sustainability reporting gets real.

Integrating your ESG efforts seamlessly

Bring policies, data, and strategy together in your annual report. Incorporate ESG metrics, manage compliance checks, and publish across multiple channels with ease.

To see how Tangelo supports ESG reporting across sustainability, finance, and compliance teams