FY26 is Your Wake-Up Year: $50M Companies Must Prepare Now for Sustainability Reporting
Australia's new sustainability reporting rules for companies over $50 million kick in from FY27. That's just over a year away—so FY26 is your window for getting prepared.
Reporting will be mandatory. Regulators will be watching. Customers will be comparing. If you wait until next year, you're already behind.
What's Changing, and Who's Affected
ASIC's climate disclosure regime for Group 3 organisations begins in FY27. It will apply to companies that meet at least two of the following thresholds:
Revenue of $50 million or more
Assets of $25 million or more
Employees numbering 100 or more
Affected companies will be required to disclose:
Scope 1, 2, and 3 greenhouse gas emissions
Climate-related risks and opportunities
Governance and strategy
Progress over time
Critically, your FY27 report must include data from FY26. That means preparation can't wait.
FY26 is Your Prep Year
You won't be able to calculate your emissions until you know what data you must get and then gather and organise it.
Many businesses waste months trying to dive into baselining too early—before they've got access to the required data. Some of that data might live in your invoices. Other pieces will need to be requested from your suppliers.
Rushing in without a plan leads to duplication, delays, and avoidable costs. FY26 is your chance to do it right.
Start by checking your data readiness. Find the gaps. Fix what's missing. Then, move forward with confidence.
What Businesses Need to Do Now
To get ahead of the curve, take these practical first steps:
Assess data readiness – Do you have access to the data you'll need for reporting?
Identify emissions hotspots – Understand the major sources of emissions across your business and suppliers
Map risk and exposure – Clarify where your vulnerabilities are within your operations and in your upstream value chain
Set relevant goals – Focus on targets that align with your sector, your stakeholders, and your current capabilities
Build a trackable, fact-based, defensible plan – One that stands up to scrutiny and helps avoid claims of greenwash
Where SDM-X Can Help
SDM-X is designed for Australian operations that need a lightweight way to meet evolving sustainability rules.
We help you check readiness, baseline emissions, and identify risk
Only pay for what you need to comply—we limit your software expense and avoid unnecessary consulting
Everything aligns with ASIC requirements, ISO standards, and emerging international frameworks