Why a climate reporting framework is essential for small businesses

In the wake of Australia’s proposed law mandating climate reporting for large and medium-sized enterprises, many in the business community are pondering its implications. Treasurer Jim Chalmers believes that these new climate-related disclosure requirements will help, “maximise the economic opportunities of cleaner, cheaper and more reliable energy and manage climate change risks”.

This legislation, while initially targeting larger corporations, signals a broader shift that will inevitably impact small and medium-sized enterprises (SMEs). In my years consulting with SMEs to develop forward-looking and resilient business strategies, I have learned that leveraging Environmental, Social, and Governance (ESG) is key to successfully navigating this evolving legislative landscape and achieving long-term success.