The introduction of mandatory climate-related financial disclosures in Australia, beginning 1 January 2025, marks a transformative moment for corporate sustainability and accountability. Under the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024, large businesses and financial institutions will be required to prepare annual sustainability reports, including detailed climate-related disclosures.
As a technology provider specialising in carbon emissions measurement and reporting, we understand that this shift presents both significant challenges and opportunities for organisations. Net Zero Media is in a unique position to empower businesses to meet these new requirements as they relate to their procured Media & Advertising Services (Indirect Scope 3 Emissions) obligations efficiently, leveraging data-driven insights to turn compliance into a competitive advantage.
Meeting New Reporting Obligations
Section 292A of the Corporations Act 2001 (Corporations Act) now requires entities to prepare a sustainability report for a financial year. The legislation introduces a phased implementation for annual sustainability reporting:
Group 1:Â Largest entities with annual revenue of $500 million or more, gross assets of $1 billion or more, or 500+ employees must begin reporting for periods starting on or after 1 January 2025.
Group 2:Â Medium-sized entities with $200 million in revenue, $500 million in assets, or 250+ employees begin reporting from 1 July 2026.
Group 3:Â Smaller entities with $50 million in revenue, $25 million in assets, or 100+ employees will follow, starting 1 July 2027.
With these timelines in mind, businesses must prepare by adopting robust governance systems, accurate emissions measurement capabilities, and streamlined reporting processes.
What Needs to Be Included in Sustainability Reports?
The Corporations Act in conjunction with the Australian Accounting Standards Board (AASB) jointly represents the new reporting regime which mandates disclosures on various climate-related financial metrics, aligned with global standards such as the Task Force on Climate-related Financial Disclosures (TCFD).Â
Following their approval on 20 September 2024, the AASB has published the voluntary AASB S1: General Requirements for Disclosure of Sustainability-related Financial Information, and mandatory AASB S2: Climate-related Disclosures. Under AASB S2, sustainability reporting must include:
Governance: The organisation’s governance framework for managing climate risks and opportunities.
Strategy: How climate risks and opportunities impact the organisation’s short-, medium-, and long-term strategy and financial planning.
Risk Management:Â Processes used to identify, assess, and manage climate-related risks.
Metrics and Targets:Â Quantitative disclosures, such as greenhouse gas (GHG) emissions (Scopes 1, 2, and relevant Scope 3), and progress toward sustainability targets.
Implications for the Measurement of Advertising Emissions
Advertising activities are an often-overlooked area when calculating emissions, particularly Scope 3, which covers indirect emissions across the value chain. For advertising, these emissions might arise from:
Digital Advertising:Â Energy used in the lifecycle of digital campaigns, including server loads, data transfer, and content storage on platforms.
Distribution Channels:Â Emissions from traditional print media, outdoor signage, and digital distribution channels.
Consumption: Emissions from the end user consumption of media and advertising.
The ability to accurately measure these impacts will become critical. Businesses must collaborate with advertising partners, media agencies, and technology providers, such as Net Zero Media, to track and report emissions across the entire advertising lifecycle. This requirement will likely drive the adoption of carbon-efficient advertising practices, such as optimised digital formats, renewable energy use in media production, and reduced reliance on high-emission distribution channels.
Opportunities Amid Compliance Challenges
While meeting these new obligations may seem daunting, businesses have much to gain by embracing sustainability. Enhanced disclosures not only ensure compliance but also unlock strategic benefits:
Investor Confidence:Â Transparent reporting aligns with ESG investment trends.
Operational Efficiency:Â Emissions data can identify inefficiencies and areas for cost savings.
Market Differentiation:Â Companies leading on climate initiatives can stand out in competitive markets.
For smaller businesses included in later reporting cohorts, early preparation using scalable and cost-effective technology solutions will mitigate future challenges.
Supporting the Transition
Australia’s adoption of mandatory climate disclosure aligns with leading international frameworks. As a provider of carbon emissions technology, we are committed to helping Australian businesses comply with these new standards while driving global leadership in sustainability practices.
ASIC, the Australian regulator, has launched resources to help businesses comply. However, integrating emissions measurement systems into daily operations will be critical to success. Net Zero Media’s CarboniQ platform is designed to:
Simplify carbon emissions data capture and measurement as it relates to media and advertising activities across all media channels.
Ensure compliance with reporting standards across advertising and media activities.
Offer actionable insights for climate risk management and emissions reductions.
Final Thoughts
The Treasury Laws Amendment Bill marks a significant step in Australia’s commitment to sustainable corporate practices. The emphasis on detailed, transparent reporting extends even to areas like advertising, driving innovation and accountability across the business value chain. By leveraging advanced technology, organisations can turn regulatory challenges into opportunities for growth, efficiency, and environmental leadership.
As Australian businesses prepare for this transition, we are here to partner with them—providing the tools they need to measure, manage, and report their emissions while navigating toward a sustainable and resilient future.
About Net Zero Media
At Net Zero Media, we are driving a future where the advertising industry takes decisive action to reduce its carbon emissions.
Recognising the critical need for specialised technology to measure these Scope 3 emissions, Net Zero Media was founded by a collaboration of senior executives from the marketing, advertising, software and sustainability industries who developed CarboniQÂ to effectively measure the environmental impact of every advertising campaign across all media channels.
Our mission is to transform the advertising landscape by integrating media planning expertise with advanced technology and a deep understanding of climate science. We empower the industry to navigate complex challenges and deliver sustainable solutions, driving decarbonisation.
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