Australian Accounting Sustainability Updates

11/4/25, 8:42 am

By Arya Kumar

2025 marks a global shift toward greater accountability, transparency, and regulatory alignment in corporate ESG practices.

Regulatory Reform in Australia

In January 2025, the AUASB approved two key standards:

ISSA 5000 sets out a globally aligned framework for sustainability assurance engagements.
ASSA 5010 introduces consistent timelines for ESG report audits under the Corporations Act 2001.

These apply to financial years starting on or after January 1, 2025, primarily affecting large reporting entities.

Global Accounting Standards Update

The IASB issued updated guidance in December 2024 to enhance accounting transparency for nature-dependent energy contracts (e.g., wind, solar, hydro). This move reflects growing integration of environmental risks into financial disclosures.

Insights from Global ESG Leaders

Watershed’s State of Corporate Sustainability 2025—drawing on input from over 200 companies—highlights increasing ESG investment, despite challenges like limited resources, internal alignment, and data inconsistency.

The Strategic Imperative

Across the board, organizations are enhancing measurement tools, aligning with regulatory changes, and embedding ESG into business operations. As ESG assurance becomes a global expectation, sustainability reporting is no longer optional—it’s a core business and compliance priority.