Capital Advisory
As climate-related disclosures become increasingly integral to corporate transparency and accountability within Australia, the process of developing a robust climate statement can be seen as a daunting and unfamiliar exercise. Whether you’re navigating regulatory requirements or responding to stakeholder expectations, the journey from concept to publication is complex. However, it can be made smoother – with a considered approach.
Here are six of Rennie’s key lessons taken from recent efforts supporting organisations with their climate statement development. We think these will help guide your organisation toward more effective and efficient reporting preparation.
1. Careful, and early, planning
Start with a draft structure and story board
One of the most valuable steps is to establish a draft structure for your climate statement early in the process. This is especially important if you’re deviating from the standard four-pillar framework within the Australia Sustainability Reporting Standards (ASRS), Governance, Strategy, Risk Management, Metrics & Targets.
Begin with a storyboard of what you want your final disclosure to look like, sound like and feel like – the key messages you want to convey, the graphics you want to generate. A draft structure provides a foundation for discussion, alignment, and iteration and helps key stakeholders visualise the end product and understand what they might need to prepare for and how their contributions will fit into the end picture.
Seek guidance from available and credible external resources
There are now plenty of implementation guides that exist, that you can be using as a starting reference point. We suggest to leverage the materials and ongoing guidance that the Australian Accounting Standards Board (AASB) release through its Knowledge Hub, which now includes access to the AASB S2 Implementation Advisory Panel, for all Australian stakeholders to submit implementation questions related to implementing AASB S2. This should be supplemented with the ASIC Guidance notes and Australian Auditing & Assurance Standards Board (AUASB) materials. Reach out to Rennie Advisory if you need help interpreting the guidance for your particular organisation.
2. Work backwards from the end disclosure
Reverse engineering
Reverse-engineering your climate statement can create efficiencies. Using your storyboard and draft structure, identify and start mapping the key data points, related systems, and data owners required. This will also highlight any process gaps that need to be filled. This approach ensures that your efforts are targeted and that you’re building toward a clear, actionable outcome and narrative.
RACI’s
In our experience supporting organisations with their climate statement readiness, we have found that the use of a RACI matrices (Responsible, Accountable, Consulted, Informed) alongside the climate statement template is a valuable and useful tool to facilitate the development process. The RACI matrix helps with coordination of the roles and responsibilities across the organisation for each of the essential areas of the climate statement. It also serves as a project management tool to guide the advancement of the climate statement throughout all stages of development.
3. Engage stakeholders early and often to uplift literacy and buy-in
Engage and clearly communicate with stakeholders throughout the process
Internal stakeholder engagement is critical not just for buy-in, but for awareness and accountability. Validate your proposed Climate Statement structure with key contributors early on, and clearly communicate what will be required from them, whether it’s data provision, qualitative narratives, or sign-off responsibilities. Early engagement helps avoid bottlenecks and ensures smoother collaboration throughout the process.
Build climate and ASRS literacy
Don’t assume that key internal and external stakeholders, that need to be involved in this process, will have a base level of literacy in climate-related matters or the ASRS reporting requirements. Instead, bring them along on the journey by creating internal foundational knowledge-sharing sessions or documents that explain the rationale behind requests, clarify expectations, and provide context. Examples and visuals will be key so they can make the connection with the data request, what they deliver and how this impacts the overall output. Investing in education and uplift will improve the quality of input, level of efficiency and engagement. It also fosters a culture of shared understanding and accountability.
4. Bake in time for internal sign off and approvals
Structured processes that enable overarching governance, internal alignment and sign off / approvals are essential for efficient Climate Statement development
Climate Statement sign off is not a box-ticking compliance exercise at the end of the reporting process. Gaining comfort in the accurate messaging within the statement through internal/external verification activities, due diligence by Directors, and multiple layers of subject matter and leadership review all take time and should occur throughout the report development process to avoid re-work. It will also involve engagement with external parties and subject matter experts.
Establishing an approvals process early on through your RACI, helps to articulate accountabilities clearly, ensuring that reporting governance is embedded throughout the right levels of the organisation. Look to integrate approvals into established committee processes that have ongoing cadence and a good cross section of the business. Be sure to update agendas and Charters that reflect these new accountabilities.
5. Invest in a good reporting system
Reporting systems allow for consistent and repeatable processes that can be easily externally assured
A robust reporting system can be a game-changer. While it may require upfront investment in time and cost, the long-term efficiencies and governance benefits are substantial. A good system supports verification, transparency in review of workflows and data sources, and version control, helping ensure the integrity and reliability of your disclosures. There are lots of options on the market and we have looked at many of them. Let us know if we can help you to navigate what’s on offer.
6. Expect the unexpected and embrace the learning curve
The first few years are a learning opportunity – embrace ASIC’s grace period and look to signals from peers to continuously improve year on year
Climate disclosure is a dynamic and evolving space. Challenges will arise, and plans may need to shift. Recognising that this is a learning curve for everyone helps foster resilience and adaptability. Each cycle of reporting offers new insights and opportunities for improvement. Embrace the grace offered by ASIC in those first few years and apply learnings from peers to avoid greenwashing risks.
Australian Group 1 reporters are currently in their first reporting period under ASRS, with their first reports due to be lodged in February and March 2026. There will be an opportunity to learn from the experiences of these first reporters, particularly the ASX listed. Take a look and familiarise with their disclosures, seek opportunities to engage in external industry and peer knowledge sharing events and networks.
Further, organisations reporting under the Aotearoa New Zealand External Reporting Board (XRB) are in their second year of disclosures. While the disclosure requirements differ slightly from ASRS, there are many similarities and hints that can be used to assist and guide organisations within Australia.
Complex content will need to evolve over time
In order to provide meaningful insights to stakeholders, some of the data points within your organisation’s climate statement, will require substantial resources and effort to develop and build up useful data and supporting practices over a few years. Examples of this include measuring the current financial impact of climate-related risks and opportunities on your business and value chain, translation of climate scenario analysis outputs into financial forecasting/accounting models and statements, accurate foot printing of your relevant scope 3 emissions sources within your value chain, and developing a meaningful transition plan.
Below, is a conceptual example of the thinking required behind translating climate risks and opportunities into financial impacts and subsequently where they might find themselves in the Financial Statements.
Illustrative examples of how climate risks and opportunities can translate into financial impacts
Note: While Rennie has attempted to illustrate the impacts for a variety of climate-related risks and opportunities across multiple sectors and industries, this cannot be construed as financial advice or viewed as an exhaustive perspective of potential financial impacts for an organisation’s climate-related risks and opportunities. *The time horizon will differ dependent on the industry and type of technology being transitioned.
All of these activities are complex and cannot just be switched on overnight. A fit-for-purpose approach deployed over time and based upon reasonable access to resources while not resulting in undue cost is imperative to generating helpful disclosures for stakeholders to guide any decision making. There are some nuances in the standard around this that should be carefully understood by your organisation.
Rennie’s final thoughts
Developing a climate statement under Australia’s mandatory climate-related regime is more than a compliance exercise – it’s a strategic opportunity to demonstrate leadership, transparency, and commitment to climate-related matters. By applying these learnings, organisations can navigate the complexities of climate reporting with greater confidence and clarity.
Are you preparing your first climate disclosure under ASRS?
Let’s talk about how Rennie can help you make the process smoother and more impactful……
