Beyond compliance: Unlocking business value through climate disclosures

As of 1 January 2025, new climate disclosure laws have come into effect in Australia, marking a significant shift for businesses. While many organisations may view these disclosures as just another regulatory hurdle, they actually represent a strategic opportunity to build a more resilient, sustainable, and high-performing business. By embedding climate-related governance into core business functions, organisations can not only meet compliance obligations but also unlock additional value across their operations.

Why climate disclosures matter

The Australian Government has introduced climate-related reporting requirements in line with global trends towards transparency and accountability. These disclosures require businesses to assess and report on their climate-related risks, carbon footprint, and mitigation strategies, in alignment with frameworks such as the Task Force on Climate-related Financial Disclosures (TCFD) and the International Sustainability Standards Board (ISSB).

For organisations that embrace this change, these requirements present a critical opportunity to strengthen business fundamentals. They encourage businesses to take a structured approach to climate risk management, emissions tracking, and sustainability initiatives, leading to better strategic decision-making and enhanced financial performance.

Beyond compliance: The business case for action

1. Strengthening business resilience

Climate disclosures require organisations to identify and assess risks related to climate change, including supply chain disruptions, regulatory shifts, and market changes. By proactively integrating these considerations into business strategy, companies can enhance their ability to navigate economic and environmental uncertainties. A business that understands its climate risks is better positioned to mitigate potential disruptions and secure long-term stability.

2. Improving business processes and efficiency

The process of gathering climate-related data encourages organisations to refine their data management, reporting accuracy, and internal controls. Businesses that develop structured processes for tracking emissions, energy use, and environmental impacts often discover inefficiencies that, when addressed, lead to cost savings and operational improvements. This can include optimising energy consumption, reducing waste, and improving supply chain transparency.

3. Unlocking new financial and investment opportunities

Investors, banks, and financial institutions are increasingly incorporating climate risk into their decision-making processes. Companies with robust climate disclosures demonstrate a clear commitment to sustainability, making them more attractive to investors and lenders. Additionally, government incentives and green finance mechanisms are becoming more accessible to businesses that proactively manage their climate risks and implement sustainability initiatives.

4. Strengthening market competitiveness and reputation

Consumers and corporate buyers are placing greater emphasis on sustainability and responsible business practices. Organisations that align with these expectations can strengthen their brand reputation, enhance customer loyalty, and gain a competitive edge. Demonstrating transparency through climate disclosures builds trust with stakeholders, including customers, investors, regulators, and employees.

5. Enabling innovation and growth

Adopting a proactive approach to climate disclosures fosters a culture of continuous improvement and innovation. Companies that invest in sustainable practices often discover new business opportunities, whether through the development of low-carbon products, circular economy initiatives, or improved supply chain collaborations. Businesses that position themselves as leaders in sustainability will be better equipped to capitalise on emerging markets and shifting consumer demands.

Preparing for the transition: Practical steps for businesses

To maximise the benefits of climate disclosures, businesses should act now. Key steps include:

• Assess readiness: Conduct an initial assessment to understand current climate-related risks, existing reporting processes, and data gaps.
• Establish governance structures: Define clear roles and responsibilities for climate-related oversight, integrating sustainability considerations into board and executive decision-making.
• Enhance data collection and reporting: Invest in systems and processes to accurately track emissions, energy use, and climate-related risks.
• Engage stakeholders: Work with investors, customers, suppliers, and employees to understand expectations and align climate strategies accordingly.
• Develop a long-term strategy: Move beyond compliance by embedding sustainability into core business planning, risk management, and innovation efforts.

How C6 ESG can support your business

To help businesses navigate climate disclosures effectively, C6 ESG offers tailored solutions through Carbon Pulse and Carbon Map.

Carbon Pulse: A fast and insightful starting point

Carbon Pulse is a short survey designed for business leaders to quickly assess their ESG maturity and understand their classification under the Australian Treasury’s new climate disclosure framework. It provides instant insights and directs organisations towards relevant online resources to help them take the next steps in their sustainability journey.

Carbon Map: A comprehensive climate disclosure and strategy tool

For businesses ready to take a structured and data-driven approach to climate governance, Carbon Map offers a robust digital platform that streamlines compliance and strengthens business processes. Carbon Map helps organisations build the systems and workflows needed to align with regulatory requirements while driving continuous improvement and long-term sustainability.

By partnering with C6 ESG, businesses can not only meet their compliance requirements but also position themselves for future success through enhanced strategic planning, risk management, and operational efficiencies.

A strategic opportunity, not just a compliance exercise

The introduction of climate disclosures is not just about regulatory compliance; it is a catalyst for businesses to build stronger, more resilient, and more competitive organisations. By taking a proactive approach, companies can unlock financial, operational, and strategic benefits that extend well beyond mere compliance.

Rather than viewing climate disclosures as an administrative burden, businesses should embrace them as a means to future-proof their operations, drive efficiency, and position themselves as leaders in an evolving marketplace. Those who act early will be best placed to capitalise on the opportunities that come with greater transparency, accountability, and sustainability-focused innovation.