ESG Disclosure Requirements: How Training Supports Financial Compliance

As ESG (Environmental, Social and Governance) reporting becomes a regulatory imperative in Australia, businesses are under increasing pressure to provide transparent, accurate and auditable disclosures. But with rising expectations come new complexities – especially for finance leaders tasked with aligning non-financial data with existing financial reporting practices.

For CFOs, compliance managers and financial controllers, it’s no longer just about keeping the books balanced. It’s about ensuring that ESG data stands up to the same scrutiny, assurance and regulatory rigour as financial data. And that’s where training comes in. From helping teams understand ESG metrics to building internal capacity for ongoing disclosure readiness, this article explores how the right training programs can future-proof your organisation and support reliable financial compliance.

ESG disclosure: an evolving compliance obligation

Regulatory trends in ESG disclosure

The regulatory environment is shifting fast. Globally, jurisdictions are introducing mandatory ESG disclosure rules to ensure that companies are transparent about their climate risk, governance structures and social responsibility.

In Australia, mandatory climate-related disclosures began to take effect from 1 January 2025. These new requirements – introduced via the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill, which passed Parliament on 9 September 2024 and received Royal Assent on 17 September 2024 – fulfil the Australian Government’s commitment to mandate sustainability reporting.

This new regime aligns closely with global frameworks such as the International Sustainability Standards Board (ISSB) and the Task Force on Climate-related Financial Disclosures (TCFD).

This means affected organisations will need to disclose:

• Governance processes for identifying and managing climate risk
• Material ESG risks and opportunities
• Climate scenario modelling and emissions reduction planning
• Scope 1, 2 and (eventually) Scope 3 emissions data

The staged rollout based on company size, revenue and listing status means that organisations need to act now to assess their readiness, regardless of their reporting start date.

Impact on financial reporting processes

These disclosures won’t sit in a standalone report. They must be integrated into your broader financial filings, bringing ESG into direct alignment with your existing financial controls and audit processes. That means finance and ESG teams must collaborate more closely than ever before. It also means everyone involved in reporting – financial controllers, risk officers, sustainability leads – needs a shared understanding of ESG data quality, disclosure rules and assurance expectations.

If you’re not already embedding ESG risks and opportunities into financial risk assessments and governance frameworks, it’s time to start.

Why disclosure accuracy matters

Investor and stakeholder expectations

Investors, customers and employees expect businesses to walk the talk. Any disconnect between ESG promises and real performance is a reputational risk. According to PwC, 76% of investors say they would walk away from a company that doesn’t meet ESG criteria. Inconsistent or inaccurate disclosures can result in lost trust, shareholder pressure and reduced access to capital.

Beyond investors, customers and talent are also watching. Organisations that fail to meet ESG expectations risk losing market share, experiencing brand damage and struggling to attract purpose-driven talent.

Legal implications of inaccurate ESG data

Getting ESG disclosures wrong carries legal risks, too. ASIC has made it clear that greenwashing – whether intentional or not – will be met with scrutiny and potential enforcement action.

Inaccurate ESG data can lead to:

• Misleading disclosures and regulatory penalties
• Legal liability under corporate and financial reporting laws
• Director liability for inaccurate statements

With ESG reporting becoming a formal compliance requirement, businesses must treat it with the same care and rigour as financial reporting.

How training strengthens disclosure practices

Building internal capabilities

The good news? ESG reporting doesn’t need to be overwhelming – if you have the right training and systems in place. Training ensures that everyone involved in ESG disclosures:

• Understands the applicable reporting frameworks (ISSB, TCFD, etc.)
• Can identify and track relevant ESG metrics across operations
• Knows how to interpret data sources and manage disclosure timelines
• Is equipped to engage in audit and assurance processes

Whether you’re onboarding new ESG software, adjusting risk registers, or building your next annual report, training aligns your team on expectations, standards and terminology.

Training financial and reporting teams on ESG metrics

Finance teams are familiar with rigour, but ESG data adds new layers of complexity – especially when dealing with emissions, human rights risks, or supply chain governance. That’s why Safetrac offers tailored ESG training programs designed for reporting teams, sustainability officers and financial controllers. These courses:

• Break down complex ESG concepts in simple, accessible terms
• Explore real-world reporting examples and compliance case studies
• Are created by local legal experts and e-learning specialists
• Can be customised to your organisation’s policies, frameworks and sector-specific risks

Safetrac’s courses are delivered via our ISO-certified compliance platform, or provided in SCORM format to integrate with your in-house LMS. This flexibility ensures your team has access to timely, relevant and consistent training content.

Building a culture of continuous ESG readiness

Embedding ESG into financial risk strategy

ESG isn’t a “set and forget” initiative. It needs to be part of your ongoing risk and financial strategy.

This includes:

• Aligning ESG goals with enterprise risk management
• Ensuring regular data review and internal assurance checks
• Training teams to monitor ESG issues year-round – not just before disclosure season
• Creating formal governance roles or committees to oversee ESG accountability

As investor and regulator focus on ESG increases, integrating ESG into strategic decision-making becomes a competitive advantage as well as a compliance requirement.

Ensuring ongoing compliance through education

Regulations will change. Frameworks will evolve. But your ability to stay compliant depends on one thing: whether your people stay informed.

Safetrac supports continuous compliance through:

• Ongoing training updates as laws and standards change
• Automated refresher courses
• Policy acknowledgement tracking
• Built-in reporting and dashboards to demonstrate audit readiness

In addition, Safetrac’s survey tools and custom content development help businesses identify training gaps, track sentiment across teams and ensure that ESG policies are clearly understood across the organisation.

Our ESG programs are designed not just to educate—but to engage and empower, giving your people the knowledge and confidence they need to manage ESG risks proactively.

Final thoughts

As ESG disclosure becomes standard practice, finance leaders must rise to the challenge. That means not only collecting the right data, but also building the internal knowledge and capability to interpret, report and stand behind it. With Safetrac’s award-winning ESG compliance training, your team gains the tools and confidence to deliver disclosures that meet legal standards and investor expectations – without adding unnecessary complexity to your compliance load.

Looking to strengthen your ESG disclosure capability? Get in touch with Safetrac to learn more about our tailored ESG training and compliance solutions – and how we can help your business stay ahead in a fast-changing regulatory environment.