Australia has taken a major step toward corporate climate accountability with the introduction of mandatory sustainability reporting legislation under the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024. Passed by Parliament in June 2024, this legislation brings Australia into line with global developments like the EU’s Corporate Sustainability Reporting Directive (CSRD) and is part of a broader shift toward more consistent, comparable, and credible environmental, social, and governance (ESG) disclosures, discussed in our previous blog – Navigating ESG in IT Asset Disposition.
For Australian companies, this law marks a significant change, as well as an opportunity to build trust, reduce risk, and showcase their sustainability leadership. One less obvious area where they can deliver measurable environmental impact under the new framework is with their IT Asset Disposition (ITAD) program.
What the Legislation Includes – and When It Starts
The legislation introduces mandatory climate-related financial disclosures aligned with the International Sustainability Standards Board (ISSB) and Task Force on Climate-related Financial Disclosures (TCFD) frameworks.
Key elements:
- Reporting will be mandatory for companies over specific size thresholds.
- Reports must include Scope 1, 2, and eventually Scope 3 emissions, as well as governance, strategy, risk management, and targets related to climate risk and opportunity.
- The regime includes assurance requirements (limited assurance initially, with potential move to reasonable assurance).
- Companies must disclose climate transition plans, emissions performance, and climate risk exposure.
The new sustainability reporting requirements will be phased in over three years, starting with the largest companies.
A Global Shift: Australia, the ISSB, and Europe’s CSRD
This new law positions Australia as part of the global movement toward standardised ESG reporting. It's closely aligned with the ISSB’s IFRS S1 and S2 standards, designed to make sustainability data useful.
Importantly, it echoes the European Union’s CSRD, which already requires thousands of companies operating in or with ties to Europe to report on ESG matters—including supply chain emissions (Scope 3), circularity, and waste management.
Together, these frameworks reflect a rising expectation for companies to track and report full lifecycle impacts, including the fate of IT equipment at end-of-life.
How ITAD Fits Into Sustainability Reporting
IT Asset Disposition (ITAD) is the industry term used for the process of securely decommissioning, reusing, or recycling IT equipment. While this may seem like a lower priority in terms of ESG focus, with these new regulations it becomes strategically important.
That’s because ITAD directly contributes to:
- GHG emissions tracking
- Scope 3 emissions reduction (through reuse and emissions avoidance)
- Circular economy metrics
- Waste reduction and diversion from landfill
ITAD activities that extend the life of equipment through reuse, resale, or refurbishment reduce the need for new manufacturing—a major driver of emissions in corporate value chains.
How SK Tes Supports Reporting: Verified Carbon Loop Reporting
SK Tes provides comprehensive, externally verified Carbon Loop Reporting to all its clients, making it a powerful partner for Australian companies navigating these new disclosure obligations.
SK Tes’ Carbon Loop Reporting includes:
- Audited tracking of Scope 3 emissions avoided through reuse and recycling
- Detailed material recovery and environmental impact data
- Full chain-of-custody documentation across the ITAD lifecycle
- Alignment with ISSB, TCFD, and CSRD-aligned reporting formats
- Support for corporate ESG disclosures and auditable sustainability reports
Our reports have been independently reviewed, ensuring data integrity and making them suitable for formal inclusion in sustainability disclosures under Australian and international legislation.
Learn more: www.sktes.com/carbon-loop-report
The Impact for Australian Businesses
Under the new rules, Australian companies will be under increasing pressure to quantify their Scope 3 emissions accurately, demonstrate circular practices and waste reduction, and provide auditable evidence to support their sustainability claims. By leveraging verified ITAD impact reporting from SK Tes, organisations can reduce their reported emissions, enhance overall ESG performance, avoid reputational risk associated with unverified or incomplete data, and demonstrate clear compliance with investor and regulatory expectations.
Turn ITAD Into a Strategic ESG Advantage
Australia’s new sustainability disclosure laws represent more than a regulatory challenge; they are a chance for forward-thinking companies to demonstrate ESG leadership. With SK Tes’ Carbon Loop Reporting, companies can transform end-of-life IT into climate-positive outcomes that support compliance, transparency, and long-term impact.
See how SK Tes can help you today
