Our resource centre provides an overview of the Australian regulatory landscape highlighting the increasing focus of climate change and sustainability within financial reporting and helps you consider the reporting impacts.  Discover the latest developments in sustainability reporting both globally and locally.

Climate risk impact assessment

Use our 10 questions for audit committees as a starting point for your impact assessment relating to the financial statements.

1.  Has your company made a net-zero commitment?

2.  Does your company have polluting assets?

3.  Is your company exposed to carbon-related regulation?

4.  What about your inventory and production costs?

5.  Does your company take part in an emissions scheme?

6.  Does your company borrow funds?

7.  Is your company a provider of finance?

8.  What about your staff benefits?

9.  What about your cash flow forecasts?

10. What about your disclosures?

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How might climate risks impact financial statements?

Ten questions to start your climate-risk assessment.

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Climate change reporting insights

An overview of the Australian regulatory landscape and financial reporting trends for climate change and decarbonisation.

Our publications help organisations communicate the impact of climate in Annual reports and financial statements.

Climate change reporting FAQs

Frequently asked questions to help identify and address climate change impacts on your financial statements.
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Sustainability reporting developments

Understand the rapid and converging developments in sustainability reporting.

International developments

Get ready for ISSB sustainability disclosures

Two Exposure Drafts have been released – on climate-related disclosures and general requirements for disclosures – that provide proposals to create a global baseline for investor-focused sustainability reporting.  Reporting could be as early as the end of 2022. 
Read more about the proposal >
Read our response to the first two proposed ISSBTM IFRS Sustainability Disclosure Standards >

Sustainability reporting continues to develop at a fast pace across the globe. Three sets of proposed standards have been exposed for comment: from the ISSB Board, the US Securities Exchange Commission (SEC) and the European Financial Reporting Advisory Group (EFRAG). 
Read our response  to the SEC’s climate proposals (PDF 361KB) > 
EFRAG submissions close on 8 August 2022.

Our Comparing sustainability reporting proposals guide (PDF 982KB) provides further insight on some of the practical challenges you may encounter as you prepare for the new sustainability reporting standards. 


New International Sustainability Standards Board

The IFRS Foundation is aiming to put sustainability reporting on the same footing as financial reporting by establishing a sister body to the International Accounting Standards Board. The ISSB will address the demand for global sustainability disclosure standards. Read more >

Australian developments

Climate reporting in the annual report

The TCFD recommendations are supported by all Australian standard-setters and regulators and are currently considered to be the basis for best practice climate-related disclosures in Annual Reports. 
Read more in Reporting Update 22-RU-03 >

Since releasing our Reporting Update in March 2022, the AASB has formally endorsed its support of the voluntary adoption of the recommendations made by the TCFD. The statement is a means of providing direction for stakeholders prior to the AASB developing and adopting a framework for extended external reporting.

The AASB is actively considering the release of the ISSB standards in Australia, and sought feedback on the ISSB Exposure Drafts to inform the AASB as to the appropriateness of and support for its proposed approach to sustainability-related financial reporting in Australia.
Read our response to the AASB's consultation (PDF 236KB) >

How KPMG can help

KPMG Australia's services related to sustainability and climate change reporting in financial statements.

Your climate change-related Annual Report disclosures under TCFD recommendations

Climate Change & Sustainability >

Reporting climate change impacts in financial statements – how your climate change response impacts recognition, measurement and disclosures

Sustainability Strategy & Reporting >

ESG Assurance >

Providing assurance over your climate change related disclosures throughout your Annual Report

ESG Assurance >

Your sustainability and corporate reporting more broadly 

Sustainability Strategy & Reporting >

Better Business Reporting / Integrated Reporting >

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