The NSW government is committed to achieving net zero carbon emissions by 2050 and making NSW more resilient to a changing climate. Disclosure of public sector entities’ material climate-related risks and opportunities, including the actions entities are taking to manage these risks and harness opportunities, provides transparency and helps drive climate action. These disclosures will also meet the increasing demand for this type of information from community members, investors, lenders, and other stakeholders.
NSW Reporting Framework for first year climate-related financial disclosures
TPG24-33: Reporting Framework for First Year Climate-related Financial Disclosures sets out the minimum content requirements for the first year of mandatory climate-related financial disclosures by NSW government annual reporting entities. It aims to guide entities in disclosing their climate-related risks and opportunities.
- Key Principles: entities must adhere to principles - fair presentation, materiality, consolidated reporting, and connected information when preparing disclosures.
- Recommended considerations: In addition to the mandatory principles, the reporting framework also outlines additional recommended considerations that may support entities in preparing their disclosures, including organisation context, maturity and proportionality.
- Disclosure Requirements: the reporting framework specifies mandatory disclosures under the areas of governance, strategy, risk management, and metrics and targets. It also includes examples and guidance to help entities meet these requirements.
The NSW reporting framework is closely informed by the Australian Sustainability Reporting Standards developed by the Australian Accounting Standards Board, with some modifications to reflect NSW Government circumstances and reporting entity capability and capacity.
Who is required to prepare climate related financial disclosures?
Under TPG23-10 Annual Reporting Requirements and subsequent government decisions, NSW government agencies, businesses, and universities, collectively known as ‘NSW entities,’ will be required to prepare climate-related financial disclosures alongside their annual reports. This obligation is being implemented in three phases, starting from the 2024-25 financial year, (or the 2025 calendar year where applicable).
The following entities have been identified as part of phase 1 and are required to prepare their initial climate-related financial disclosures for the 2024-25 financial year, or 2025 calendar, in line with their annual reporting obligations. This requirement will be formalised through a Treasurer’s Direction to be released in late 2024. Details for phases 2 and 3 will be confirmed over coming months.
- Department of Climate Change, Energy, the Environment and Water
- Department of Communities and Justice
- Department of Creative Industries, Tourism, Hospitality and Sport
- Department of Customer Service
- Department of Education
- Department of Planning, Housing and Infrastructure
- Department of Primary Industries and Regional Development
- Environment Protection Authority
- Essential Energy
- Forestry Corporation of New South Wales
- Hunter Water Corporation
- icare
- Landcom
- Ministry of Health
- New South Wales Land and Housing Corporation
- New South Wales Treasury Corporation
- Newcastle Port Corporation
- NSW Police Force
- Premier's Department
- Sydney Metro
- Sydney Trains
- Sydney Water Corporation
- The Cabinet Office
- Transport Asset Holding Entity
- Transport for NSW
- Treasury
- University of New South Wales
- University of Sydney
- Water NSW
If you have any questions on the Reporting Framework or climate related disclosure reform, please contact [email protected].
Climate Risk Ready NSW Hub
The NSW Department of Climate Change, Energy, the Environment and Water (NSW DCCEEW) has launched a collection of resources to help NSW Government entities understand, assess and disclose climate-related risks and opportunities.
To access the NSW DCCEEW Climate Risk Ready Hub, please email [email protected]. Please note that the Hub is accessible by NSW Government Entities only at this time.
