Earlier this year, Moir Group co-hosted a webinar, A Futuristic View on ESG — How to Create Long-Term Value, with a panel of Environmental, Social, and Governance (ESG) experts. We were curious to hear how companies have met their ESG requirements since the event. The responses to our survey revealed that while many companies have begun to make strides in ESG, significant hurdles remain. This is particularly around resources, communication, and regulatory compliance. The introduction of new mandatory climate-related reporting requirements in Australia further raises the stakes. In the article, we share key insights from the survey, introduce the new mandatory climate reporting regulations in Australia as of 2025, and the road ahead to ESG compliance.
Key insights from the survey
1. Incremental investment in ESG: Companies have taken steps to address ESG concerns. Some respondents reported that their organisations are actively innovating and listening to stakeholders while others are planning to invest in ESG. This indicates that while companies recognise the need for ESG integration, many are still at the starting line.
2. External influences shape ESG efforts: Customer demand, government regulations, and investor expectations are among the primary drivers pushing businesses to adopt ESG strategies. One respondent emphasised the role of climate science in driving their company’s actions, while another noted the influence of regulatory bodies on their efforts. With increasing pressure from multiple fronts, companies must find ways to balance external demands with internal capabilities.
3. Resources are a major bottleneck: Many companies struggle to find the time and personnel to fully implement ESG initiatives. Some mentioned that key staff tasked with ESG efforts are already working full-time in other roles, making it difficult to dedicate the necessary attention to ESG. Others pointed to challenges with internal data capture, which is crucial for tracking progress and meeting reporting requirements.
4. ESG headcount remains static: Most respondents noted no change in their ESG headcount, citing budget constraints or broader economic factors. However, a few companies have hired dedicated ESG personnel, signalling a more serious commitment to sustainability. Notably, companies with more established ESG frameworks, such as B Corp-certified organisations, appear to be better resourced in this regard.
5. Data capture is a top challenge for 2025: Most respondents identified internal data capture as their top challenge for 2025. As regulatory requirements around ESG reporting become more stringent, companies will need to invest in systems that allow them to accurately track and report on their environmental impact. This will be especially important for complying with Australia’s new mandatory climate reporting laws.
Navigating new mandatory climate reporting
Australia’s new Treasury Laws Amendment Bill introduces mandatory climate-related reporting requirements for large and medium-sized companies, starting in 2025. Companies with over 500 employees, $500 million in revenue, or $1 billion in assets must disclose climate risks and greenhouse gas emissions across their value chains. Medium-sized companies will begin reporting in 2026, with smaller firms starting in 2027.
The law aligns with International Sustainability Standards Board (ISSB) guidelines, ensuring adherence to global best practices. Australia is also establishing a Net Zero Economy Authority to oversee the country transition to net zero emissions by 2050, focusing on supporting workers in emissions-heavy industries and fostering investment in clean energy.
Scope 3 reporting, which tracks emissions across a company’s entire value chain, will be phased in. This will give businesses an additional year to comply, alongside a three-year protection from litigation for Scope 3 disclosures. Investor groups have welcomed the changes as they provide clearer climate risk insights for more informed decision-making.
Coping with the evolving ESG landscape
The introduction of mandatory climate reporting marks a significant turning point for companies in Australia, many of which are already struggling to keep up with their ESG commitments. As ESG reporting becomes more stringent, companies will need to invest in better data management systems and ensure that they have the resources to comply with new laws.
Cecile Walton, Senior ESG Practitioner and Advisor, has worked for more than 15 years in the space. Cecil emphasised that ESG is evolving as a guiding principle within the business fabric, requiring regular reflection, updates, and transparent communication. She also explained that while developments in legislation, regulation and reporting requirements are important, they are end products and not catalysts for innovation. She stated: “The C-suite must embrace the complexity of the challenge… It’s about how you change the way you operate your business, the way you do business, to play a role in society.” This perspective challenges organisations to adopt a transformative culture rather than simply fulfilling reporting obligations. You might also like to read this post, The rise of CSOs — What they do and why it matters.
Looking ahead — The road to ESG compliance
The road to effective ESG integration is long, and the challenges are significant. However, businesses that can navigate these complexities. Whether by investing in data capture, increasing transparency, or hiring dedicated ESG personnel, businesses can position themselves as leaders in the sustainability movement. While the new mandatory climate reporting laws add another layer of complexity, they also offer an opportunity for companies to demonstrate their commitment to long-term environmental goals.
How Moir Group can assist
Don’t let the upcoming 2025 mandatory reporting requirements catch you off guard. At Moir Group, our ESG Division is ready to step in and support your sustainability and reporting needs right away.
What we offer:
- Proven expertise: Our candidates have a solid track record in sustainability reporting and compliance.
- Strategic insight: From strategy to execution, they provide the leadership you need for seamless reporting integration.
- Immediate availability: Get ahead of the deadlines with candidates who can start now.
- Passion for ESG: Our experts bring both technical skills and a commitment to driving positive change.
Contact ESG Manager Lisa Tracy on 0499 009 301 or lisatracy@moirgroup.com.au to learn how we can help you meet your reporting requirements.
If you would like further support, information, or resources on this topic, please contact us.
Moir Group is a specialist finance, accounting and ESG recruitment company. We cover temporary and permanent roles from Assistant Accountant to CFO level. We also recruit Sustainability / ESG Manager roles to Chief Sustainability Officer roles across all industry sectors.
If you have any recruitment needs in your team on a permanent or a temporary basis, we would be delighted to assist. Contact us here.
