What is Sustainability Reporting? Examples from Australia's leading companies
Sustainability reporting has become a crucial practice for businesses committed to transparency and responsible growth. As stakeholders, including the Australian Government, increasingly demand insight into environmental, social, and governance (ESG) practices, companies must step up and provide clear, comprehensive sustainability reports. But what exactly is sustainability reporting, and how are some of Australia’s leading companies setting the standard?
In this article, we’ll explore the essentials of sustainability reporting, highlight how companies like Woolworths, Qantas, and Telstra are approaching it, and provide practical tips to streamline your own reporting process.
Whether you’re new to sustainability reporting or looking to enhance your current practices, this guide will help you understand the why, what, and how of impactful sustainability disclosure.
What is sustainability reporting?
Sustainability reporting is the process by which organisations disclose information about their environmental, social, and governance (ESG) practices and performance. It involves documenting and communicating how a company impacts the environment, how it treats its employees and the community, and how it governs itself to ensure ethical and responsible management.
The concept of environmental, social and governance (ESG) reporting first entered mainstream vernacular in 2004, used in a report by the United Nations, titled Who Cares Wins. The report argued that integrating environmental, social, and governance (ESG) factors into investment decisions leads to better long-term financial performance and more sustainable global markets and emphasised that companies and investors who prioritise ESG considerations not only contribute to positive societal outcomes but also enhance their own competitiveness and resilience in the market.
Why is sustainability reporting important?
The purpose of sustainability reporting is to provide stakeholders—such as investors, customers, employees, government bodies and the public—with a transparent view of the organisation’s efforts to operate sustainably. This reporting helps stakeholders assess the company’s commitment to sustainability, its risks and opportunities, and its long-term viability.
If you don’t measure and report, you don’t really know how your company is performing towards its targets, or in comparison with other organisations. Strong sustainability reporting is not just a useful communication tool, but an actionable breakdown of the tangible steps an organisation is taking, and will take in future, to improve its impact on both people and the planet.
What is usually included in sustainability reports?
Every company approaches sustainability reporting differently, depending on the nature of their operations, what they feel is most important to their stakeholders to communicate, and in some cases what they are obliged to report on for legal or regulatory reasons.
Here’s a brief overview of the components that may be covered within a sustainability report, following an ESG framework:
Environment
Resources
- Energy consumption
- Greenhouse Gas (GHG) emissions (including carbon emissions)
- Waste management
- Water usage & management (incl. impacts on water quality)
- Sustainable resource use (e.g. efforts to use sustainable materials or reduce resource consumption)
Environmental & climate impacts
- Biodiversity & land use
- Environmental compliance
- Climate change strategy (e.g. adaptation / climate resilience)
Sustainability initiatives
- Sustainability certifications
- Sustainable sourcing practices
- Circular economy practices
Social
Labour practices & employee wellbeing
- Diversity & inclusion / equal opportunity
- Health & safety
- Training & development
- Fair labour practices & relations
- Flexible work arrangements
Human rights & community engagement
- Human rights policies
- Supply chain management
- Community rights, investment & engagement strategy
- Social impact initiatives (e.g. supporting vulnerable communities)
- Data privacy & security
- Product safety & quality
Governance
Board composition & structure
- Board diversity & independence
- Specialised Board Committees
Ethical conduct & compliance
- Code of conduct
- Anti-corruption & bribery policies
- Whistleblower protections
- Regulatory compliance
Risk management
- Risk management procedures & controls
- Crisis management
Shareholder rights & engagement
- Shareholder voting
- Engagement strategy & practices
- Ownership structure
Transparency & reporting
- Disclosure practices
- Audit processes
- Materiality assessment
How do companies undertake sustainability reporting in Australia?
Until recently, there have been no official local standards for Australian companies when it comes to undertaking sustainability reporting. However, in 2024, the Australian Accounting Standards Board began developing the Australian Sustainability Reporting Standards. These standards include both voluntary and mandatory reporting frameworks, depending on a company’s obligations.
The mandatory ASRS standards (ASRS 2) are now also underpinned by new legislation passed as part of the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024, which will require some companies to make climate-related disclosures, depending on certain eligibility criteria under the Corporations Act and National Greenhouse and Energy Reporting Act 2007.
Read more about the ASRS.
Related sustainability reporting & certification frameworks
In addition to the ASRS, your business may also be required to, or choose to, undertake sustainability-related reporting that aligns with other complementary frameworks or certifications. Some of the most common standards Australian companies align to are detailed below.
The National Greenhouse and Energy Reporting (NGER) Scheme
The NGER Scheme was established under the National Greenhouse and Energy Reporting Act 2007. It is a single national framework for reporting company information about:
- greenhouse gas emissions
- energy production
- energy consumption.
Only companies that meet certain thresholds are required to register for the scheme and report under it; usually these companies are either electricity producers, or directly emit a large volume of greenhouse gas emissions as part of their operations. You can learn more about eligibility criteria and reporting requirements on the Clean Energy Regulator website.
ISO 26000
Developed by the International Standard Organisation (ISO), ISO 26000 provides internationally-recognised guidance that “helps clarify what social responsibility is, helps businesses and organisations translate principles into effective actions and shares best practices relating to social responsibility, globally”. Unlike other well-known ISO standards, ISO 26000 does not allow a company to achieve a specific certification, it merely provides guidance on best-practice reporting. You can learn more about ISO 2600 on the ISO website.
UN Global Compact & Sustainable Development Goals
The United Nations (UN) Sustainable Development Goals (SDGs) are a set of 17 interconnected global goals designed to be a “blueprint to achieve a better and more sustainable future for all” by 2030.
The UN SDGs provided some of the earliest guidance for both individuals and organisations to consider how they might contribute to ensuring a more sustainable, equitable and prosperous future for everyone around the globe. As a result, the SDGs are well known and understood by the broader public, and in turn can be a useful communication tool. Australian companies including Woolworths, Coles, Telstra and Qantas all reference the UN SDGs as part of their sustainability reporting.
The UN Global Compact has developed a self-assessment tool which supports organisations in determining how they are performing in line with the SDGs.
CDP
CDP (formerly ‘Carbon Disclosure Project’) is a not-for-profit organisation that runs the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts.
While it is voluntary to make disclosures to CDP, doing so offers companies a way to disclose their environmental information through CDP’s questionnaires, receive a CDP score, and benchmark their efforts against other organisations. If a company chooses to publicly disclose their efforts they are eligible to receive and display the CDP disclosure badge.
B Corp Certification
B Corp certification is often sought out by companies that want to publicly demonstrate that they meet high standards of social and environmental performance, accountability, and transparency. To achieve B Corp status, businesses undergo a rigorous assessment by B Lab, a nonprofit organisation, which evaluates their impact on workers, customers, communities, and the environment.
If a company already undertakes some form of sustainability reporting, this may help contribute to a B Corp application as both involve measuring and communicating a company’s impact on the environment and society. B Corp certification goes beyond traditional sustainability reporting by providing a verified metric-based benchmark for overall impact, called a B Impact Score, which is displayed publicly on a company’s B Corp profile, encouraging companies to continuously improve their performance. Intrepid Travel is one example of an Australian company that has undertaken B Corp certification.
What are some examples of sustainability reporting in Australia?
With the introduction of the Australian Sustainability Reporting Standards, sustainability reporting in Australia is set to evolve significantly over the next few years, especially as more companies fall under the mandatory reporting criteria.
It can be useful to look to public reporting developed by large Australian companies for a guide on how to approach high quality sustainability reporting. Below are some examples from some of Australia’s biggest corporations.
Australian sustainability reporting examples
Woolworths Group
As of 2024, Woolworths Group delivered its sustainability reporting over a variety of publicly available documents. The below image from the 2024 Sustainability Report demonstrates which components are covered, and to what extent, across reports including the company’s Annual Report, Sustainability Report and Sustainability Data Pack. For example, Woolworths climate-related disclosures are covered in detail in its Annual Report, but also mentioned in its Sustainability Report and Sustainability Data Pack.
The company aligns its reporting with a range of sustainability frameworks, including the UN Global Compact, Task Force on Climate-related Financial Disclosures (TCFD), ISS, SBTi and RE100, amongst others.
Qantas
Australian airline Qantas delivers a comprehensive annual sustainability report, aligned to the Global Reporting Initiative, United Nations Global Compact and Sustainable Development Goals (UN SDGs), TCFD and International Sustainability Standard Board frameworks.
Interestingly, the company ties each section of its 2023 Sustainability Report to the relevant UN SDGs, as well as its own Sustainability Framework, developed to articulate how Qantas’ sustainability commitments tie into its overall business strategy.
Telstra
Australia’s largest telco, Telstra, provides a great example of best-practice sustainability reporting. As part of its 2023 Sustainability Report, the company has developed a clear sustainability strategy comprising three core pillars; (1) Doing business responsibly, (2) Creating a better digital world and (3) Sustaining our planet. The below graphic captures how these pillars encompass the vast array of topics that are covered by the concept of ‘sustainability’.
How do I make sustainability reporting easier for my business?
Sustainability reporting can be a significant undertaking for any business, regardless of its size. If your business is looking to develop its first sustainability report, or improve its current reporting processes, consider the following recommendations to make the task of reporting more seamless, accurate and impactful:
- Choose and align to a standard framework: Use established frameworks like those detailed in this article to provide structured guidelines that simplify data collection and reporting.
- Leverage technology and software: Use specialised sustainability reporting software to automate data collection, track metrics, and generate reports. Tools like Climate Zero can streamline the process of collecting and synthesising on the critical data that will feed into your reports.
- Engage stakeholders early: Involve relevant departments (e.g., finance, HR, operations) from the beginning to ensure accurate data collection and alignment with overall company goals. This collaboration makes reporting more comprehensive and less cumbersome.
- Set clear goals and KPIs: With your stakeholders engaged, define specific, measurable sustainability goals and key performance indicators (KPIs). This clarity helps focus efforts cross-functionally and makes data collection more targeted and efficient.
- Use materiality assessment: Conduct a materiality assessment to identify the most critical sustainability issues for your company and stakeholders. Focus reporting efforts on these areas to avoid unnecessary data collection and make reporting more relevant.
- Training and Education: Train employees on not only sustainability reporting requirements and the importance of accurate data collection but the purpose of sustainability reporting Empowering staff with knowledge can improve engagement and therefore data quality and reporting efficiency. For example, Climate Zero’s Learn platform helps introduce staff to concepts around climate change, net zero targets, how to build a climate-resilient organisation and the importance of collecting data relevant to calculating an organisation’s greenhouse gas emissions.
- Third-party assurance: Consider using external auditors or consultants, such as Rewild Agency to verify data and provide guidance. This can help ensure accuracy and identify areas for improvement, making future reporting easier.
- Regular monitoring and updates: Instead of waiting for the annual reporting cycle, track progress continuously. Regular monitoring helps identify gaps and address issues promptly, reducing the workload at reporting time. Having the ability to access live data and insights provides support for real-time business decision making.
- Iterative improvement: Learn from each reporting cycle and implement feedback to refine processes. Continuous improvement makes each subsequent report more efficient to produce.
Ready to start reporting?
If you’re looking to simplify your sustainability reporting and ensure accuracy, the right tools can make all the difference. Climate Zero’s carbon accounting software offers a streamlined solution for tracking, managing, and reporting your greenhouse gas emissions – a crucial element to understanding your organisation’s environmental impact.
Ready to take the next step? Chat with the Climate Zero team today to learn how our software can seamlessly integrate into your sustainability reporting efforts and enhance your commitment to a greener future.
