NSW is introducing mandatory climate-related reporting for government departments, agencies, and state-owned corporations. The new rules aim to improve transparency and show how government entities manage climate risks and opportunities.
The disclosures will cover four main areas: governance of climate risk management, strategy for managing risks and opportunities, risk management processes, and metrics and targets to track progress. The reporting will provide clear information on how climate risks like heatwaves, bushfires, and floods are addressed.
The rollout will take place over three years. The first 29 entities will publish climate disclosures in their 2024-25 annual reports. These include major departments, state-owned corporations, and large agencies such as NSW Health, Transport for NSW, Essential Energy, Sydney Water, NSW Police, and the NSW Land and Housing Corporation. Another 30 entities will join from 2025-26. A whole-of-government climate disclosure will be published next year.
The reporting framework is part of a broader update to annual and financial reports. Agencies will be grouped by size, risk, and type. Some will produce full annual reports, while others will submit a short-form Annual Information Statement. This aims to reduce red tape and allow agencies to focus on core work while maintaining transparency.
The new climate disclosures are expected to strengthen public finances and give investors confidence. They may also help attract private sector investment to support clean energy and net-zero initiatives.