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 asses a company’s impact on the natural world, measured through elements such and energy use, waste management, pollution, resource conservation, and climate change 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 aims to give a clearer picture of how businesses are affected by climate risks and opportunities. 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?

Meeting your ESG goals requires a long-term, comprehensive plan and should be built into the fabric of an organisation at every level.

Through comprehensive training and knowledge testing staff on the learning materials, you can show you are not only promoting a safer and more equitable workplace but also contributing to 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, Resilience and Mental Health, First Nations’ Australians – Cultural Recognition and more.
Governance: Phishing, 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. Easily manage course content, surveys, attestations, track staff policy acceptance, uncover knowledge gaps, and report on progress – all in one convenient platform.

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