Only one in eight leaders say they are fully ready
Only one in eight Australian business leaders describe their organisation as fully ready for climate reporting. Even so, half support mandatory climate-related disclosure and three-quarters say they are at least somewhat prepared.
Many Australian businesses are entering the next phase of reporting under financial strain. Annual inflation was 4% in May 2026, while GDP grew by 0.3% in the March quarter.
Those figures affect energy bills, supply contracts, insurance costs, capital decisions and customer demand. Because of that pressure, some organisations view the Australian Sustainability Reporting Standards, or ASRS, as another cost.
Lisa Zembrodt, principal and senior director at Schneider Electric, said climate reporting can also show how well an organisation understands its own operations. Reliable disclosure depends on accurate data, connected systems and coordination across finance, procurement, sustainability and operations.
Lisa Zembrodt on ASRS readiness
Schneider Electric’s recent Energy Tech Pulse survey found that many organisations still rely on spreadsheets, fragmented systems and manual processes to manage climate and energy data. Those tools may help produce a report, but they offer limited visibility into performance.
A spreadsheet can show what happened last quarter. However, it is much less useful for finding wasted energy, underperforming assets, or future risks from climate and energy shocks.
ASRS will force organisations to ask practical questions. Leaders will need to identify where energy is used, which facilities or suppliers create the biggest exposure, and which parts of the business face heat, extreme weather, grid constraints or rising power prices.
Following that review, businesses may also find where efficiency gains could cut both emissions and cost. Zembrodt argued that many leaders may start with compliance and end with a clearer view of business risk.
Sustainability reporting also tests whether a business can sustain itself financially and operationally. In Zembrodt’s framing, that means resilience, durability and the ability to keep delivering outcomes in a changing economy.
Energy sits at the centre of that challenge. Schneider Electric research shows energy costs are one of the leading external pressures on Australian organisations.
Four in ten Australian businesses reported that energy costs or supply issues had delayed or caused them to miss growth opportunities. Meanwhile, nearly half expect ongoing energy pressure to reduce profitability or increase operating costs.
Skills gaps add another layer of risk. Almost three in ten Australian organisations identified a shortfall in staff capability as their biggest obstacle to climate disclosure progress, and 30% said they lack the internal skills needed to meet new disclosure and compliance rules.
Zembrodt said companies do not always need large in-house sustainability teams. But they do need clear governance, reliable systems and access to technical expertise if they want climate reporting to improve decisions rather than become a box-ticking exercise.
For businesses under budget pressure in 2026, that distinction matters. Better data and connected systems can support ASRS compliance, manage risk, reduce waste and improve investment decisions at the same time.
