Environmental, Social and Governance (ESG) reporting has shifted from a voluntary exercise to a core regulatory and governance requirement for organisations across the Asia‑Pacific region. Regulators, investors and stakeholders increasingly expect transparent and decision‑useful sustainability disclosures that explain how organisations manage ESG risks and opportunities.
In Australia and Singapore, mandatory sustainability and climate‑related reporting requirements are now being phased in. For many organisations, understanding what is required, who must report, and how to prepare has become a priority.
This article outlines the current ESG sustainable reporting requirements, explains what they mean in practice, and highlights how organisations can build internal capability to meet these obligations.
What is ESG sustainable reporting?
ESG reporting involves measuring and disclosing information about an organisation’s environmental impact, social responsibilities and governance practices. Modern ESG reporting goes beyond high‑level statements and focuses on how sustainability‑related risks and opportunities affect an organisation’s financial position, performance and long‑term strategy.
Globally, regulators are moving towards consistent, comparable and verifiable sustainability disclosures that align ESG information with financial reporting. This reflects growing recognition that climate risk, workforce practices, supply chains and governance failures can all have material financial consequences.
ESG reporting requirements in Australia
Mandatory sustainability reporting under the Corporations Act
Australia has introduced mandatory sustainability reporting, initially focused on climate‑related financial disclosures. Under amendments to the Corporations Act 2001, certain entities that are required to prepare annual financial reports must also prepare a sustainability report as part of their annual reporting obligations.
The sustainability report must include climate‑related financial information prepared in accordance with AASB S2 Climate‑related Disclosures, which aligns Australia with the global baseline issued by the International Sustainability Standards Board (ISSB).
Further guidance on Australia’s sustainability reporting requirements is available from the Australian Securities and Investments Commission (ASIC).
Who needs to report and what must be disclosed?
Mandatory reporting is being phased in based on size and reporting thresholds. In general, listed entities, large proprietary companies and other entities required to lodge financial reports under Chapter 2M of the Corporations Act, must assess whether they meet the sustainability reporting criteria.
Climate‑related disclosures must address four key areas:
- Governance of climate‑related risks and opportunities
- Strategy, including transition planning
- Risk management processes
- Metrics and targets, including greenhouse gas emissions
- Metrics and targets include Scope 1 and 2 emissions from year one, and Scope 3 if material from later phases.
While climate reporting is the initial focus, the legislative framework anticipates that broader sustainability topics may be introduced over time.
More detail on the Australian Sustainability Reporting Standards is available from the Australian Accounting Standards Board.
ESG reporting requirements in Singapore
Sustainability reporting on the SGX
In Singapore, sustainability reporting has been mandatory for listed companies on the Singapore Exchange (SGX) for several years. These requirements continue to evolve as regulators align local reporting with international standards.
From financial year 2025, Singapore has commenced a phased approach to mandatory climate‑related disclosures, aligned with ISSB standards. These disclosures focus on climate risk governance, emissions reporting and strategic resilience.
Guidance on sustainability reporting expectations is available from SGX.
Climate reporting and assurance roadmap
Under the roadmap jointly announced by SGX and the Accounting and Corporate Regulatory Authority (ACRA):
- Listed companies must report Scope 1 and Scope 2 greenhouse gas emissions
- Larger listed companies must progressively adopt ISSB‑aligned climate disclosures
- Assurance requirements will be introduced in later phases
- Large non‑listed companies will be brought into scope over time
More information on Singapore’s sustainability reporting framework is available from ACRA:
Why ESG reporting is more than compliance
Although ESG reporting is now a regulatory requirement in many jurisdictions, it should not be treated as a tick‑box exercise. Effective ESG reporting can deliver real business benefits, including:
- Improved risk identification and management
- Stronger governance and board oversight
- Greater credibility with investors, regulators and customers
- Better alignment between sustainability strategy and business objectives
- Increased organisational resilience
Conversely, poor quality or misleading ESG disclosures expose organisations to regulatory scrutiny, reputational harm and potential legal risk.
Common challenges organisations face
As ESG reporting obligations expand, organisations commonly face challenges such as:
- Understanding evolving regulatory requirements across jurisdictions
- Identifying material ESG risks and opportunities
- Collecting reliable and consistent data
- Integrating ESG considerations into governance frameworks
- Ensuring staff understand their ESG responsibilities
Addressing these challenges requires more than external advice. It depends on building internal knowledge and accountability across the organisation.
Building ESG capability through training
As ESG reporting becomes embedded in governance and financial reporting, organisations need staff at all levels to understand ESG concepts, regulatory expectations and practical implementation.
Targeted training helps organisations to:
- Understand ESG principles and terminology
- Recognise how ESG risks affect different roles and functions
- Support accurate data collection and reporting
- Strengthen governance and oversight processes
- Embed sustainability into everyday decision‑making
ESG training for Australian organisations
GRC Solutions’ ESG Course (Australia) is designed to support organisations navigating Australia’s sustainability and climate reporting requirements. The course provides practical, role‑relevant education on ESG principles, governance expectations and reporting obligations.
Learn more about the ESG Course for Australia
ESG training for Singapore‑based organisations
For organisations operating in Singapore or the wider region, GRC Solutions also offers an ESG Course (Singapore) aligned with SGX and ISSB‑based sustainability reporting expectations.
Learn more about the ESG Course for Singapore
Preparing for the future of ESG reporting
ESG sustainable reporting requirements will continue to evolve as regulators expand the scope beyond climate to cover broader sustainability topics such as biodiversity, human capital and supply chain impacts.
Organisations that take a proactive approach now by strengthening governance, improving data quality and investing in staff capability will be better positioned to respond to future regulatory change.
ESG reporting is no longer optional. It is a core component of modern governance, risk management and long‑term value creation.