In March 2025, ASIC released Regulatory Guide 280: Sustainability Reporting by Entities, setting out Australia’s pathway toward mandatory climate and sustainability reporting. While the first wave of obligations targets large corporations, the broader shift toward transparency, data-backed claims, and circularity is already affecting supply chains—including the furnishing industry.
Who Needs to Report?
These reports must comply with the Australian Sustainability Reporting Standards (ASRS) developed by the Australian Accounting Standards Board (AASB). The first two standards—AASB 1 and AASB 2—are aligned with the International Sustainability Standards Board (ISSB) frameworks IFRS S1 and IFRS S2. This ensures Australia’s climate disclosures are internationally credible and consistent with frameworks used in the EU, UK, New Zealand, and Japan.
The reporting obligations apply to entities that:
- Must prepare annual financial reports under the Corporations Act 2001, and
- Meet specified thresholds for consolidated revenue, gross assets or number of employees.
These thresholds are being phased in over three years:
- Group 1: Large listed and unlisted companies (from Jan 2025)
Entities with $500 million or more in consolidated revenue, $1 billion or more in gross assets, or 500 or more employees
- Group 2: Medium-large entities (from July 2026)
Entities with $200 million or more in consolidated revenue, $500 million or more in gross assets, or 250 or more employees
- Group 3: Smaller reporting entities (from July 2027)
Entities with $50 million or more in consolidated revenue, $25 million or more in gross assets, or 100 or more employees
Read the full guide – RG 280 (PDF)
Why It Matters for You
Even if you’re not currently required to report, this shift signals a broader move toward transparent, evidence-based sustainability claims. Government buyers, large customers, and investors are increasingly requesting credible information about:
- Greenhouse gas emissions, including Scope 3,
- Materials and chemicals used,
- Circular design practices and end-of-life pathways,
- Procurement alignment with ESG frameworks.
These expectations are already shaping supplier requirements in tenders, partnerships, and procurement platforms.
ASIC has also released guidance for small businesses to help navigate these developments proportionately.
Why You Might Be Asked for Data
Large businesses and financial institutions are now required to consider and disclose material information about climate-related financial risks and opportunities in their value chain. That means if you’re a supplier or customer of one of these entities, you may be asked to provide certain information—such as inputs to help calculate greenhouse gas emissions or verify sourcing practices.
In many cases, these entities may rely on estimates or industry averages, rather than direct data from small and medium-sized businesses. However, if you are asked and find it difficult to respond, it’s appropriate to speak with them about the specific challenge. The legislation recognises that some data may be too difficult or costly to obtain and allows for practical workarounds in these scenarios.
Being Part of a Compliant, Competitive Supply Chain
Many AFA and AFISC members are already taking steps to prepare—whether by aligning with procurement frameworks, managing chemicals of concern, adopting circularity tools like Digital Product Passports, or using Chain of Custody and verified claims to strengthen market positioning.
Membership also provides access to:
- Practical tools and frameworks that support data readiness,
- Regulatory updates and curated guidance,
- Credibility when supplying to reporting entities under ESG scrutiny.
This positions members to respond confidently to information requests from clients navigating their own disclosure obligations.
What’s Next?
AFA and AFISC will continue to monitor sustainability reporting developments and keep members updated as the standards and reporting phases evolve.
We also have templates and checklists available for members needing support and can provide one-on-one assistance on a consulting basis (fees may apply). Whether you’re preparing to report or simply looking to stay ahead, now is the time to review what information your business may need to track.
By aligning with the ASRS and global IFRS standards, Australian businesses—particularly those in export, manufacturing, and government supply—can position themselves as internationally credible partners in the transition to net zero.
Sustainability leadership is no longer just about vision—it’s about preparation, credibility, and being ahead of the game. Whether you’re required to report or simply supplying those who are, now is the time to ensure your business is ready. Embracing transparency, circular practices, and data-backed sustainability positions your organisation not only as a responsible partner, but as a leader aligned with both national expectations and emerging international legislation. In a market where compliance, trust, and traceability are fast becoming non-negotiable, staying ahead isn’t just smart—it’s strategic.
Whether you’re just starting your sustainability journey or already leading the charge — AFA and AFISC are here to support you. Contact the team at care@afisc.eco or visit AFISC to explore and view our membership options.