iscoverWith the introduction of mandatory climate-related financial disclosures in Australia, the bar for corporate transparency has been raised, writes Narain Viswanathan.
Transparency of sustainability reporting as the new norm
27 August 2025
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10 minute read
If there is one thing businesses shudder to hear, it’s about new regulations that require reporting. From financial reporting for ASX-listed companies to risk reporting for organisations, there are a lot of business functions that generate additional work but which, mostly, don’t generate additional benefit to the bottom line; they’re done for compliance and governance reasons alone.
But amid the implementation of mandatory emissions reporting coming into effect this year for Australian businesses, one thing has become increasingly clear: sustainability reporting isn’t just about the environment, nor is it an additional compliance hassle; it just makes business sense.
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If done correctly, reporting on sustainability in your business doesn’t just put you in a favourable light societally: it can also have a financial impact. It helps to identify inefficiencies, transform data into actionable insights, strengthen risk management, and ultimately reduce costs. It helps ensure sustainable risks can be managed, investment potential can be capitalised on, and optimum brand value can be reached. Those that incorporate sustainable reporting into their business mould will be ahead of the curve and gain a competitive advantage.
As sustainability reporting is now required, organisations need to skew their view of this as a compliance hassle into seeing it as a benefit to the business. In short, it needs to become a pillar of corporate strategies if businesses want to position themselves for long-term success.
A brand with a purpose
Sustainability reporting allows for transparency while simultaneously giving companies a platform to substantiate their crucial values. Communicating that you are sustainable isn’t enough – anything can be written without any truthful intentions behind it.
It’s a simple case of “show, don’t tell”, and actionable proof is necessary when it comes to your credibility. Investors, stakeholders, consumers, and employees want to see evidence that the company they are supporting are committing to environmental sustainability efforts.
To illustrate this point, I could make a lofty claim about how I have found the cure for a disease. Without evidence to support this, I would struggle to get companies to invest in my claim.
Well, the same goes for sustainability. Businesses that have measurable data on environmental performance are not only building trust through transparency, but they’re also aligning with the global movement towards responsible business best practice. Showcasing ethical and practical considerations in a business is essential when it comes to building trust; otherwise, organisations can be -- and too often are --accused of greenwashing.
Again, show: don’t tell.
Customers, investors, and employees will favour businesses that have strong values – particularly values which are being backed up with data. In the choice between a transparent, climate-conscious company and one that burns through fossil fuels while concealing it, climate-conscious is increasingly winning. With more investors and support in your company, you’re going to get better outcomes and increased revenue.
Minimise risk, drive efficiency
With climate change, resource scarcity and social pressures creating real risks to businesses, sustainability reporting helps companies to identify risks early and prepare for them. Being able to identify, assess and mitigate problems before they turn into financial burdens is particularly important. Sustainability reporting provides a structured way for businesses to evaluate how environmental and social issues could impact financial performance and then make the necessary adjustments.
By tracking sustainability metrics, businesses can reveal inefficient energy use and waste management. In doing so, these inefficiencies can be addressed to maximise operational costs and minimise environmental damage.
For example, if the lights in a company are constantly being left on overnight but no one knows, money is being poured down the drain and emissions will skyrocket in the meantime. Identifying this will uncover a need to perhaps automate the turning off of lights during a given time period – removing additional and unnecessary cost. Reducing this level of energy waste not only reduces emissions but also leads to direct financial savings.
The benefits of taking these tangible measures is clear: Australia’s national sustainability program ‘CitySwitch’ saw businesses collectively save $62.6 million by enhancing their energy efficiency. This underscores the financial savings that could be made by tracking sustainability and subsequently implementing a sustainable approach.
A new business as usual
With the introduction of mandatory climate-related financial disclosures in Australia, the bar for corporate transparency has been raised.
As regulations tighten and market expectations evolve, Sustainability reporting is no longer a nice-to-have: it’s a business imperative. But thankfully, reporting on sustainability is proving to be not just an annoying box-ticking exercise. Clearly, what works to help the environment can also assist businesses be more strategic while boosting the bottom line. By embracing sustainability reporting, companies gain more than compliance - they gain clarity, control, and competitive strength. And in a world that increasingly rewards responsibility, that’s not just good ethics – it’s smart business.
Narain Viswanathan is the area director for Australia and New Zealand at Workiva.
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