Simon Jackson | New Norms for a Sustainable Future

Simon Jackson is a QUT alumnus (Class of 2024) and the Head of Sustainability at Compass Group Australia, one of the country’s largest food and support service companies. Drawing from his extensive experience in the sector, Simon delves into the evolving discourse surrounding sustainability and circularity in corporate landscapes. With a keen eye on the need for proactive engagement and informed action, Simon illuminates a pivotal theme for Australian businesses: the impending implementation of new climate-related disclosure laws. To navigate the shifting focus towards greater sustainability and corporate accountability, his insights provide a valuable guide while encouraging us all to prepare for the challenges and opportunities that lay ahead. He writes:

It's hard to ignore the increasingly loud conversation about sustainability in everyday life. From the exploding EV market to rooftop solar panels and discussions on reducing waste to landfill, it seems responsibility for driving sustainability impacts often falls on individuals. However, significant pressure is also mounting on larger Australian companies from global markets and shareholders to report their environmental impacts. With crunch time fast approaching, January 2025 will mark a significant shift as Australia begins enforcing new climate-related disclosure laws under the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024, currently before Parliament. This legislation mandates that Australia’s largest companies, both listed and unlisted, as well as financial institutions, prepare a detailed “sustainability report” in line with rules developed by the Australian Accounting Standards Board (AASB).

The urgency of climate and sustainability issues is not just because they are trending in public discourse; they are urgent because the climate crisis is unfolding in real-time. It's no longer a distant threat but a current reality that affects businesses on multiple fronts. This means adopting a proactive approach to sustainability that transcends compliance, embedding deep strategic value into business operations. The importance for C-suite executives to oversee this transition towards high-quality climate reporting cannot be overstated, as early and strategic engagement is crucial for enhancing organisational resilience against the escalating physical and transitional risks posed by climate change.

To start getting your head around the necessary reports and upcoming changes, you’ll need to spend some time unpacking the labyrinth of acronyms (ASRS, TCFD, ISSB, IFRS S2 etc) that guide businesses in disclosing not just the financial risks but also the opportunities that arise from climate change. These frameworks help businesses articulate their strategic responses to climate risks, showcasing resilience and long-term value creation to investors and stakeholders.

To navigate this new reporting landscape effectively, businesses must undertake several practical steps:

• Governance: Strengthen board oversight and accountability on climate-related matters, ideally integrating this within the finance function to guard against the risks of greenwashing.
• Strategy and Risk Management: Develop robust strategies to mitigate risks and leverage opportunities presented by the climate crisis. Familiarise yourself with double-materiality assessments and consider leaning on auditors for technical support, as this work requires a shift in thinking towards sustainable strategies directly overseen by CFOs or MDs.
• Metrics and Targets: Establish clear metrics for tracking progress and ensuring transparency in how sustainability targets are operationalised and communicated across the business.

The move towards mandatory climate reporting in Australia is a politically savvy, non-controversial step that aligns economic growth with environmental stewardship. It signals a shift in how businesses operate and compete on the global stage. As these new standards take effect, they will catalyse fundamental changes in corporate operations, ensuring Australian companies are not just competitive but also responsible players on the global stage. Looking forward, successful companies will view these new reporting standards not as a regulatory hurdle, but as an opportunity to demonstrate their commitment to sustainability and resilience.

Simon Jackson

QUT degree - Master of Business Administration (2024)
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