Building & Construction Industry Sustainability Goals and ESG July 2025

Building & Construction Industry Sustainability Goals and ESG 2025

The Australian government is aiming to enhance how corporations report on climate-related financial information by requiring climate disclosures. This move attempts to provide a more complete picture of how climate threats and opportunities impact businesses. The purpose is to align Australia's reporting methods with global standards, attracting investment and promoting the transition to net zero emissions.

Starting July 1, 2025, these climate-related disclosures must be included in a company's sustainability report, which will be the fourth obligatory report as part of its annual financial reporting process. The information will also appear in the company's annual report.

Who does the legislative changes impact?

The new requirements apply to corporations and financial institutions that meet two of the three criteria.

Consolidated revenue of $50 million or more, consolidated gross assets of $25 million or more, and 100 or more workers at the end of the fiscal year (EOFY).

The requirements are being phased in for organizations that match various criteria.

Your obligations under the new legislation

Climate disclosures will be subject to the existing liability framework outlined in the Corporations Act and the Australian Securities and Investments Commission Act 2001. This is to ensure that directors completely comply with their climate disclosure duties and to build investor confidence in the information given.

What is ESG?

ESG stands for Environment, Social, and Governance. These three pillars are used to assess a company's operations as well as its overall social and environmental effect.

Environmental: This pillar assesses a company's impact on the natural world, taking into account factors such as energy consumption, waste management, pollution, resource conservation, and climate change measures.

Social: This pillar investigates a company's relationships with employees, suppliers, customers, and the communities it will influence.

Governance: This pillar is concerned with leadership, executive remuneration, audits, internal controls, and shareholder rights.

ESG is critical for firms that want to grow sustainably, manage risks effectively, appeal to investors, and comply with regulations.

How can Tron Group help?

Meeting your ESG objectives necessitates a long-term, comprehensive plan that should be woven into the fabric of your organization at every level.

You may demonstrate that you are not just creating a safer and more equal workplace, but also contributing to long-term ESG performance, by providing comprehensive training and knowledge testing for staff on the learning materials.

Our solutions help organizations to maintain regulatory compliance while also aligning with ESG standards.

We are a leading business consulting firm that partners global and local experts to supports businesses on their sustainability and ESG journey to reach their organisation's goals.

Reference: MBAV, AVBA, Tron Group, ProBuild Materials