Australia must accelerate its transition to digital reporting, experts say
Some of Australia’s largest organisations, including Deloitte Australia and PwC Australia, have expressed support for mandatory digital ESG reporting as new sustainability regulations drive innovation.
At the Workiva Accelerate event in Sydney, corporate leaders discussed the challenges of meeting Australia’s evolving ESG regulatory requirements.
A consensus emerged at the event on the benefits of nationwide digital reporting, which would offer companies a standardised framework and provide the Australian Securities and Investments Commission (ASIC) with consistent, error-free information that can be assessed more efficiently.
Discussions also highlighted how ESG reporting could complement financial reporting by integrating science-based and financial data, potentially reducing workloads and enhancing value representation.
Workiva’s 2024 research, surveying 140 ESG practitioners in Australia, revealed that 90% struggle to adapt reporting processes to new regulations. Additionally, 87% of companies are prioritising ESG reporting more than in previous years, and 78% are concerned about their ability to collect and share information within their value chains.
“In the wake of the most recent new guidance from ASIC, it’s looking more likely that Australia will adopt standards and processes very similar to those in Europe,” said Andromeda Wood (pictured left), vice president of regulatory strategy at Workiva. “Those Australian companies already meeting Europe’s CSRD requirements will have an advantage.
“The proposed climate-related financial disclosure legislation in Australia now brings the focus of the law and ASIC to some of that reporting. The draft Australian Sustainability Reporting Standards are aiming to support this effort and have been based on the new standards drafted by the International Sustainability Standards Board.”
Christopher Brown (pictured centre), partner in accounting and reporting at Deloitte Australia, also emphasised the importance of digital reporting.
“Amid the global shift towards sustainability-focused financial disclosures, it is imperative that finance teams bring to bear their corporate reporting experience; to support sustainability teams in understanding the requirements, establishing appropriate governance and control, and digitally enabling ESG reporting,” Brown said.
“It’s time for Australia to accelerate its transition to digital reporting. This will help us keep pace with our trading partners, such as the US, UK, Europe, and Japan. They have mandated digital corporate reporting and have already seen the benefits – we can see those same benefits too.”
Workiva’s research indicated that 87% of companies plan to allocate more budget to ESG technology in the next three years, and 85% believe technology and data access will be crucial for advancing ESG strategies. In addition, 90% of ESG practitioners plan digital transformation projects to improve collaboration, and 86% agree that AI will make ESG reporting more efficient in the next five years.
Addressing concerns about greenwashing, PwC Australia’s Carolyn Cosgrove (pictured right) reminded attendees of the Australian Institute of Company Directors warning that liability for ESG non-compliance, including unintentional greenwashing, rests with company directors.
“Organisations are facing increasingly challenging sustainability reporting requirements, which are getting sharper focus from stakeholders and come with expanded liability for company directors,” Cosgrove said. “Leveraging existing skill sets from finance functions, establishing accountability across the organisation and enabling technology solutions will be integral in delivering credible, accurate, and timely reporting.”
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