Australia’s recent legislation mandating climate reporting by 2025 marks a pivotal shift for industries, particularly real estate. The law will require large companies, including real estate developers, property managers, and asset managers, to disclose their greenhouse gas (GHG) emissions, climate risks, and sustainability efforts. Given that real estate contributes to about 40% of global carbon emissions, this legislation is a significant push for the industry to reevaluate and compel stakeholders to reassess their operations and adopt transparent, sustainable practices.

The Australian Accounting Standards Board (AASB) is developing internationally-aligned climate disclosure standards, and the Australian Auditing and Assurance Board (AUASB) will release assurance standards for climate disclosures by late 2024. Meanwhile, Australia’s Net Zero Economy Authority, established by the Albanese government, aims to support workers, investors, and communities in transitioning to a net-zero economy. This includes reducing greenhouse gas emissions by 43% by 2030 compared to 2005 levels and achieving net zero by 2050.

Source: ESGtoday

So what does this mean for you if you’re in the real estate industry?

Starting in 2025, large organizations, including real estate firms, will need to follow the Task Force on Climate-related Financial Disclosures (TCFD) guidelines – this mean real estate stakeholders will need to provide comprehensive reports on their Scope 1, 2, and 3 emissions, specifically:

Source: Australian Securities and Investments Commission (ASIC)

Ignoring these regulations isn’t an option. Non-compliance can lead to penalties, reputational damage, and missed opportunities in a market that’s increasingly focused on sustainability. For real estate stakeholders, this means making sure your assets are not just operationally efficient but also environmentally friendly. ASIC will be keeping an eye out for greenwashing—those misleading claims about sustainability—so accurate and transparent reporting is crucial.

Introducing Secure® - a digital-twin platform and so much more!

Navigating these new regulations can be daunting, but that’s where Secure comes in. Secure offers an integrated ecosystem designed to simplify compliance with Australia’s climate reporting laws – focusing on ESG compliance, carbon footprint and operational efficiency.

Secure automates the collection and centralization of crucial data, like greenhouse gas emissions and sustainability metrics, across your property portfolio. It uses AI to accurately report Scope 1, 2, and 3 emissions and aligns with global standards like TCFD, LEED, and BREEAM.

With Secure’s digital twin technology, you get a full view of your building’s carbon lifecycle, making it easier to reduce your footprint and hit net-zero goals. The platform also supports collaboration and transparency among all real estate stakeholders, enhancing asset value through responsible management. With features like TCFD Generative Disclosures, carbon calculators, and decarbonization tools, Secure not only helps you meet regulatory requirements but also unlocks new opportunities for efficiency and sustainability. As Australia gears up for mandatory climate reporting, Secure is your go-to solution for navigating these changes smoothly and positioning yourself as a leader in sustainable real estate.

Author : Anamaria Spulber

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