ESG in 2025: Why it matters more than ever before

As we dive into 2025 it is important to recognise the strides that have already been taken by many businesses to prioritise Environmental, Social, and Governance (ESG) compliance. But now there is a new reason for businesses who have neglected ESG in recent years to re-evaluate their priorities and place an emphasis on ESG in the new calendar year.

What is ESG?

ESG stands for Environmental, Social and Governance. These three pillars are used to analyse a company’s operations and their overall impact on society and the environment.

Environmental: This pillar assesses a company’s impact on nature, including energy use, waste management, pollution, conservation, and climate initiatives.

Social: This pillar examines a company’s relationships with employees, suppliers, customers, and the communities they would impact.

Governance: This pillar focuses on leadership, executive pay, audits, internal controls, and shareholder rights.

ESG is crucial for companies aiming for sustainable growth, effective risk management, investor appeal, and regulatory compliance.

Why does ESG matter more in 2025 than ever before?

The Australian Government is working to improve how companies report on climate-related financial information by making climate disclosures mandatory. This move highlights how climate risks and opportunities impact businesses. The goal is to bring Australia’s reporting practices in line with global standards, attracting investment and supporting the shift to net zero emissions.

Starting from 1 July 2025, these climate-related disclosures will need to be included in a company’s sustainability report, which will be the fourth required report as part of their annual financial reporting. The information will also be part of the company’s annual report.

Regulators will have the authority to take action if companies fail to meet the rules about climate-related forward-looking statements.

Who does the legislative changes impact?

The new obligations apply to businesses and financial institutions that meet at least two of the three criteria.
>Consolidated revenue of $50 million or more, end of financial year (EOFY) consolidated gross assets of $25 million or more, employees of 100 or more at EOFY.

There is a phased rollout of requirements for entities that meet different criteria.

Your liability under the new legislation

Climate disclosures will be subject to the existing liability framework under the Corporations Act and Australian Securities and Investments Commission Act 2001. This is to ensure directors engage fully with climate disclosure obligations and to support investor confidence in the information disclosed.

How can Safetrac help?

Achieving your ESG goals requires a long-term, comprehensive plan that integrates into every level of the organisation.

By offering comprehensive training and testing, you not only promote a safer workplace but also drive long-term ESG success.

Our solutions offer:
Top quality compliance expertise without the hassle of building courseware, scenarios and tests in-house
Engaging learning outcomes and content covering essential ESG topics:

Environmental: Introduction to ESG, Greenwashing and Environmental compliance
Social: Psychosocial Hazards Employees, Psychosocial Hazards Managers Resilience and Mental Health, First Nations’ Australians – Cultural Recognition and more.
Governance: Privacy, Cyber Security Awareness and more.

Our Compliance Platform serves as the centralised hub for all your compliance training needs, streamlining compliance training and tasks for easy auditing, reporting and review. Efficiently manage course content, employee surveys, attestations, and track staff policy acceptance on a single, user-friendly platform. Uncover knowledge gaps and generate detailed progress reports to enhance workplace training and compliance.

Our solutions enable organisations to seamlessly uphold regulatory compliance, ensuring alignment with ESG principles.