Tackling ESG in 2025: A Guide for Australian Businesses

Executive Summary

As 2025 approaches, Environmental, Social, and Governance #ESG considerations have become essential for Australian businesses striving to remain competitive, resilient, and aligned with evolving regulatory expectations and stakeholder demands. In recent years, Australia's ESG landscape has witnessed transformative changes, driven by new legislation, international reporting standards, and increasing investor scrutiny. The Australian Sustainability Reporting Standards #ASRS and mandatory climate disclosures under the 2024 Climate Disclosure Bill are set to reshape how organisations approach sustainability.

For businesses, 2024 is a pivotal year to establish a strong foundation for ESG success. This guide provides an action-oriented roadmap for Australian companies to prepare effectively before the end of 2024 and excel in 2025. By addressing governance, climate action, social impact, and stakeholder engagement, businesses can build resilience, meet compliance obligations, and unlock opportunities for growth.

ESG Action Plan: Steps to Take in Late 2024 and 2025

1. Assess Current ESG Maturity

Key Activities for Late 2024:

• Conduct an ESG gap analysis to identify strengths, weaknesses, and priority areas.
• Use our ESG Readiness Scorecard quiz to see where your organisation stands: https://esg-scorecard.scoreapp.com Benchmark against industry peers to understand positioning and competitive advantage.
• Evaluate existing policies, processes, and performance metrics to ensure they align with the latest ASRS requirements.

Steps for 2025:

• Use insights from the gap analysis to define a clear ESG strategy that aligns with your business goals.
• Establish measurable ESG targets and integrate them into the broader business strategy.

2. Prepare for Mandatory Reporting Requirements

Key Activities for Late 2024:

• Familiarise your team with the requirements of the ASRS and the Climate Disclosure Bill.
• Develop a data readiness plan, ensuring accurate, reliable, and comprehensive data collection for Scope 1, 2, and 3 emissions.
• Invest in tools and technology platforms that simplify data management, reporting, and analysis.

Steps for 2025:

• Submit accurate ESG reports in line with ASRS deadlines.
• Leverage these reports to engage investors, customers, and other stakeholders with transparent performance metrics and commitments.

3. Strengthen Governance Frameworks

Key Activities for Late 2024:

• Review and update governance frameworks to ensure alignment with ESG best practices.
• Establish clear accountability by assigning ESG oversight to board members or creating dedicated committees.
• Implement robust risk management processes to address climate, supply chain, and social risks.

Steps for 2025:

• Conduct regular reviews of governance performance and adjust as necessary.
• Build internal capabilities through training on ESG governance and compliance.

4. Drive Decarbonisation and Climate Action

Key Activities for Late 2024:

• Develop or refine your decarbonisation strategy, prioritising initiatives with measurable impact.
• Identify high-impact areas for reducing emissions, such as energy efficiency, renewable energy adoption, or green supply chain solutions.
• Engage suppliers to collect accurate Scope 3 data and set reduction targets collaboratively.

Steps for 2025:

• Implement projects to meet interim decarbonisation milestones.
• Monitor and report progress quarterly to demonstrate accountability and build stakeholder trust.

5. Enhance Social Responsibility and Supply Chain Management

Key Activities for Late 2024:

• Conduct a modern slavery risk assessment to identify vulnerabilities in your supply chain.
• Engage with suppliers to ensure alignment with ethical and social standards.
• Develop a Diversity, Equity, and Inclusion (DEI) strategy that reflects organisational values and community needs.

Steps for 2025:

• Publish and implement a Modern Slavery Statement in compliance with the Modern Slavery Act 2018 (Cth).
• Monitor supplier compliance and engage in capacity-building initiatives to improve their ESG performance.

6. Innovate and Communicate for Stakeholder Engagement

Key Activities for Late 2024:

• Create a stakeholder engagement plan that focuses on transparency, education, and collaboration.
• Develop innovative ESG initiatives to showcase leadership and differentiation in your industry.

Steps for 2025:

• Regularly update stakeholders on progress and invite feedback to strengthen relationships.
• Leverage your ESG achievements in marketing campaigns, investor presentations, and community outreach.

7. Embed ESG into Organisational Culture

Key Activities for Late 2024:

• Deliver training programs to equip employees with the knowledge and skills to support ESG initiatives.
• Launch internal communication campaigns to foster an ESG-driven mindset across all levels of the organisation.

Steps for 2025:

• Track employee engagement with ESG initiatives through surveys and participation metrics.
• Reward and recognise contributions to ESG goals to reinforce cultural alignment.

Conclusion: Set the Foundation for Success in 2025

2024 represents a unique window of opportunity for Australian businesses to prepare for the evolving ESG landscape. By taking proactive steps now—building governance frameworks, addressing climate and social impacts, and strengthening stakeholder engagement—companies can position themselves for regulatory compliance and long-term success. Investing in ESG not only mitigates risks but also enhances reputation, operational efficiency, and access to capital.

Community of Practice

We are pleased to announce access is now available to our free Membership Hub and that gives business access to our Community of Practice.?

What Makes Our Community Exceptional.

Our community of practice and membership platform is enriched with features like our AI powered ESG Advisor ‘ChatESG’, polls, prompts, posts, and questions, education and resources specifically designed to deepen our knowledge and conversations on Environmental, Social, and Governance (ESG) topics.?

This is a space dedicated to us – a community united by a commitment to making a meaningful impact.

Being a member is currently free.?

In Q1 2025 we will be launching the beta version of ChatESG to our community.?

You can now subscribe for free via this link and you will automatically be added to the ChatESG waitlist.?Register Here.

Access Support

ESG&I. is ready to help your business succeed. With immediate capacity until December 20th, ESG&I can support your organisation in preparing for 2025. From ESG strategy development to compliance with ASRS and beyond, our team offers tailored solutions to meet your unique needs.

Take action today. Contact ESG&I to start building your roadmap for ESG success. Together, let’s make 2025 a breakthrough year for your business and the planet.

To arrange a FREE initial discovery call or meeting please contact Founder & CEO, Geoff Gourley - [email protected] or call +61 428 317 387 or Complete This Form and one of the team will get in touch.

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