Sustainability reporting: Preparing for what’s now required

Sustainability reporting has moved quickly from a future consideration to a present‑day requirement for many Australian businesses. What once felt distant is now firmly underway, with new legislation in effect and reporting obligations already applying to large entities and steadily flowing through to mid‑sized, and private, organisations.

Australia’s sustainability reporting regime is being phased in across three reporting groups, determined by employee numbers, assets and revenue. Group One entities are already lodging reports or completing final reviews ahead of submission, while Groups Two and Three are now in preparation mode.

For many businesses, the speed of this rollout has been surprising. Some organisations only realise they fall within scope once they begin assessing the thresholds, particularly where employee numbers push them into a higher reporting group than expected. As a result, far more businesses are impacted than originally anticipated.

What’s clear is that sustainability reporting is no longer limited to large, listed companies. Thousands of additional businesses will be required to report, making early awareness essential.

More than compliance

Sustainability reporting sits alongside financial reporting, with similar expectations around governance, accuracy and accountability. Directors are required to sign off, and reports are subject to regulatory oversight. However, approaching sustainability reporting purely as a compliance task can create unnecessary pressure and cost.

This reporting is not a one‑off requirement. It will be expected annually, which means businesses that rush to complete their first report without building internal capability are likely to face ongoing strain. Those that begin early are far better placed to spread the workload, manage costs and embed sustainable processes into their operations.

Early preparation allows businesses to:

• Understand what information is required and where it currently sits
• Build data collection and reporting processes over time
• Reduce reliance on external consultants in the long term
• Avoid last‑minute pressure, errors and higher costs

Group Three businesses: start early, start small

For many privately owned and mid sized businesses, sustainability reporting can feel overwhelming, particularly where internal resources are already stretched. The most practical approach is to start early and start small.

Beginning the process early allows work to be staged over time, reducing the burden on internal teams. It also creates an opportunity to assess whether existing staff can take ownership of elements of the reporting process, rather than outsourcing everything externally.

Importantly, sustainability reporting does not need to involve significant upfront investment. The earlier a business begins, the more manageable the cost and resourcing requirements become. Over time, this approach also supports the development of internal capability, reducing long term reliance on consultants.
As with any new regulatory framework, certainty is critical. Sustainability reporting introduces new standards, evolving expectations, and increased director accountability. Independent advice and review play an important role in helping businesses navigate this environment with confidence.

Engaging advisers early helps establish appropriate guardrails, ensuring reporting is compliant, defensible and aligned with regulatory expectations. Early engagement with auditors is equally important, providing clarity around what will be required and reducing the risk of issues during lodgement.

Allowing sufficient runway (often up to 24 months before the first report is due) gives businesses time to build systems, improve data quality, and refine internal processes. This preparation significantly reduces cost, stress, and risk when reporting obligations formally commence.

Looking ahead

Sustainability reporting is now part of Australia’s corporate reporting landscape and will continue to evolve over time. Businesses that take a proactive, measured approach, focusing on preparation rather than reaction, will be better positioned to meet ongoing requirements with confidence. Investing time now to build capability, systems and understanding will not only support compliance but also create a stronger foundation for long term resilience in an increasingly regulated environment.

If you’d like to understand what sustainability reporting means for your organisation and how to approach it in a practical, proportionate way, connect with your local PKF adviser or the PKF Parvate Sustainability team today.