Sustainability is an important consideration for commercial tenants, and has been for a long time. However, sustainable practices within commercial buildings are becoming increasingly critical, particularly as mandatory sustainability reporting will come into full effect at the start of 2028. This reporting obligation is being gradually phased in from the beginning of 2025.
It’s in the best interests of tenants to be as prepared as possible for mandatory reporting. At Niche Advisory, we are now offering a sustainability reporting readiness review, in which we assess your workplace and provide insights and recommendations on how to be as prepared as possible.
What needs to be included in these reports?
ASIC has provided a guide online, which outlines what must be included in your reports. They must include material risks and opportunities, relating to ESG issues. They will need to be consistent, with clear information that is based on credible measured data in your building or workplace.
Building owners and companies will be required to disclose governance arrangements, the impact of sustainability issues on strategy and performance, and climate-related risks, using recognised frameworks. Statements about future goals must be reasonable, and it’s important to avoid greenwashing throughout your reports.
How will these sustainability reports be submitted?
Companies will need to lodge their sustainability report annually, alongside their financial and directors’ report. Most entities will be required to lodge their report within three months of the end of the financial year, while some will have four months post-FY to submit. It’s important to understand your deadlines well ahead of time.
The first round of sustainability reports are due in 2026, dependent on financial year-end dates for the entities in question. If amendments are required, the report must be re-submitted within 14 days. These reports must also be published online and sent to members.
Entities that must submit a report for the 2025 period are those which tick two of the three following criteria:
-
Consolidated revenue of $500 million or more
-
Consolidated gross assets of $1 billion or more
-
500 or more employees.
It’s important to note that ASIC does not notify organisations of their obligations. Instead, it’s critical to remain proactive and ensure you understand your obligations.
What is a green lease and how can it help?
A green lease is an agreement between landlords and tenants. It involves working together to improve sustainability in a commercial building through agreed lease terms that benefit both parties. The point of this type of lease agreement is to create a more energy-efficient workplace and promote shared responsibility for reducing environmental impact, in a number of ways.
When it comes to mandatory sustainability reporting, a green lease is a great way for parties to meet targets with a head on approach. This kind of agreement often means landlords and tenants share data about energy and water usage, making collecting data much easier, and setting targets more achievable.
In essence, a green lease agreement is an excellent foundation for successfully addressing mandatory sustainability reporting.
Understanding carbon emissions in your building
Understanding the carbon emissions produced by your building is critical for creating a realistic and achievable sustainability strategy. This often requires expert auditing, analysis, and reporting, so that sources of emissions and volume can be identified, and action can be taken to reduce or eliminate where possible. Clear data provides a clear picture and a way forward, allowing businesses to meet their sustainability goals.
Reducing emissions without significant cost
At Niche Advisory, we specialise in helping businesses reduce their carbon emissions without the need for major investment. Our sustainability reporting readiness reviews provide actionable insights, identifying low-cost opportunities such as operational improvements, energy efficiency measures, and smarter resource management.
Simple upgrades like optimising your HVAC system settings or switching to energy-efficient lighting can cut emissions without large upfront costs. We help organisations focus on practical strategies and steps, so they can make meaningful progress toward their sustainability goals while staying on top of their budget.
Prepare with a sustainability reporting readiness review
Preparing for mandatory sustainability reporting is essential, and at Niche Advisory, we help businesses get ready through our comprehensive Sustainability Reporting Readiness Review. Our goal is to identify practical ways to improve your current position without significant capital investment, making compliance achievable and cost-effective.
What’s included?
Our report will include key aspects designed to address ASIC reporting standards, including:
-
Reviewing current state of ESG initiatives and reporting systems
-
Identifying physical and transitional risks and opportunities
-
Assessing reporting capabilities and recommending improvements
-
Reviewing ESG roles, responsibilities, and reporting lines
-
Identifying gaps in oversight, accountability, and risk management
-
Evaluating readiness for climate-related financial disclosures (AASB S1 and S2)
-
Creating a clear, actionable plan for next steps
Speak to our team today about your reporting obligations
It’s critical to ensure that you and your workplace are prepared for your upcoming reporting obligations. At Niche Advisory, our team is here to help. If you’d like to discuss our readiness review in more detail, or want to find out more about your current obligations as a commercial tenant or building owner, contact us today.