ASIC has partnered with the Australian Accounting Standards Board (AASB), the University of Technology Sydney and educational design agency Studio 3 Learning to develop educational modules to help you understand and apply the foundational concepts behind the sustainability reporting requirements in the Corporations Act 2001.
The introduction of the sustainability reporting requirements in the Corporations Act is a significant development in Australian corporate reporting.
The objective of these new reporting requirements is to improve the quality, consistency and comparability of climate-related disclosures to enable users of that information to make informed decisions.
While it directly targets large Australian reporting entities by requiring them to prepare sustainability reports alongside their annual financial reports, it will directly and indirectly impact many stakeholders who engage with reporting entities.
The core content requirements in the Corporations Act require disclosure of information about governance, strategy, risk management, and metrics and targets to help users understand the reporting entity’s climate-related risks and opportunities.
These educational modules aim to support foundational education across the emerging climate-reporting ecosystem. This is a key building block in the development of climate-related disclosures in Australia, supporting both the production of high-quality information and confident and informed decision making in reliance on it.
There are 8 educational modules across the following topic areas:
Module 1 Corporations Act and climate-related disclosure requirements
What will I learn?
Module 1 sets out how these learning materials can be used and introduces the basics of the new climate-related disclosure requirements in the Corporations Act 2001 (Corporations Act).
The module’s first unit shows how the learning materials can be used and introduces the eight learning modules. It explains who the content is for, what the materials do and do not cover, and how they can support you in understanding and applying the key concepts behind climate-related financial disclosures.
The module’s second unit provides an overview of the new climate-related disclosure requirements in the Corporations Act. You will learn about what these requirements are, and their objectives.
Module structure
Learning outcomes
By the end of this module, you will:
- know what topics and concepts are covered by these learning materials
- understand how to get the most out of the learning materials, given your particular circumstances
- be able to describe the basic features of Australia’s new mandatory climate-related disclosure requirements under the Corporations Act, and
- understand generally how these new disclosure obligations may affect your entity and others
Module 2 Introduction to climate change
What will I learn?
In Module 2, you will learn about key climate change concepts, global climate policy frameworks and Australia’s approach to climate change. These will give you a foundational understanding of the core drivers of climate-related risks and opportunities.
The module will introduce you to climate science, greenhouse gases, the greenhouse effect and how human activity has driven global warming. It covers the history of global climate agreements, the United Nations Framework Convention on Climate Change (UNFCCC), the Intergovernmental Panel on Climate Change (IPCC) and the role of these two global institutions.
The module will give you an understanding of the Paris Agreement, its objectives and implementation mechanisms. You will also learn about the global carbon budget and the remaining budget for alignment with the Paris Agreement.
The module will introduce you to the concepts of climate mitigation and adaptation, with examples. It will also introduce you to Australia’s Nationally Determined Contribution to the Paris Agreement (including our emissions reduction target) and National Adaptation Plan.
Module structure
Learning outcomes
By the end of this module, you will be able to:
- explain how human activity has driven global warming and describe the main greenhouse gases
- describe key global climate policy frameworks and agreements, including their implementation mechanisms
- explain the concepts of climate mitigation, adaptation and the global carbon budget, and
- describe Australia’s response to climate change.
Module 3 Climate-related physical risks
What will I learn?
In Module 3, you will learn more about climate-related physical risks. The module begins by looking at how climate change risk and impact are defined by the Intergovernmental Panel on Climate Change (IPCC), including the key concepts of hazard, exposure and vulnerability. It then provides detail on the distinction between acute and chronic physical risks.
You will then learn about the main categories of acute physical risk that may impact entities in Australia, including both current and future risks. You will also learn how Australian entities may be affected indirectly by climate-related impacts and risks in other parts of the world.
This module also includes 3 case studies, providing practical examples of how acute and chronic physical risks may impact Australian entities, and how a physical impact occurring overseas might disrupt an entity’s value chain.
Finally, the module provides a summary of public sources of information that you may find helpful to assess your entity’s exposure to climate-related physical risks.
Module structure
Learning outcomes
By the end of this module, you should be able to:
- describe the key concepts underpinning climate-related physical risks
- explain the main types of acute physical risk facing entities in Australia
- apply the concept of risk transmission, understanding how climate impacts overseas may affect Australian entities, and
- locate and use information to support you in assessing your entity’s climate-related physical risks.
Module 4 Climate-related transition risks
What will I learn?
Module 4 focuses on explaining climate-related transition risks and how they may affect your entity. Climate-related transition risks arise from the efforts to transition to a lower-carbon economy, not from the direct physical impacts of climate change. They can stem from changes in policy and legislation, legal developments, new technologies, evolving markets, and shifting stakeholder expectations.
The module begins with an overview of what climate-related transition risks are. You will learn how these risks can arise, what types of financial and operational impacts they may cause, and how different forms of transition risk often interact with each other.
The module then explores the policy and regulatory context at national, state and territory levels, as well as the climate commitments of Australia’s major trading partners. It concludes with a series of hypothetical but realistic case studies illustrating policy, market, legal, technology and reputational risks, and the ways these could transmit through value chains to impact entities of all sizes.
Module structure
- Unit 1: Introduction to climate-related transition risks
- Unit 2: Overview of major Australian Government policies and legislation relating to decarbonisation
- Unit 3: Nationally Determined Contributions of Australia’s top five trading partners
- Unit 4: Case study: policy-related risks
- Unit 5: Case study: market-related risks
- Unit 6: Case study: legal-related risks
- Unit 7: Case study: technology-related risks
- Unit 8: Case study: reputational-related risks
Learning outcomes
By the end of this module, you will be able to:
- explain what climate-related transition risks are and how they differ from climate-related physical risks
- identify some categories of transition risk and how they can affect operations, strategy and financial performance
- outline key Australian national, state and territory decarbonisation policies, and the climate commitments of Australia's major trading partners
- assess how transition risks may arise in your own entity or value chain, using case study insights to inform your understanding.
Module 5 Climate-related opportunities
What will I learn?
In Module 5, you will learn about how responding to climate change through mitigation and adaptation measures can present opportunities for entities. Mitigation and adaptation at a global policy level, as well as at the entity level, are explained in Module 2 Unit 5.
This module introduces climate-related opportunities and shows how they may apply to your entity through practical examples.
You will explore the concept of climate-related opportunities in practice through two case studies based on hypothetical entities in the transport and logistics sector.
- Case Study 1 focuses on climate mitigation, showing how a logistics company expanded its business and won new customers by decarbonising its fleet and operations.
- Case Study 2 explores climate adaptation, highlighting how a food logistics company strengthened its operations and reputation by adapting to extreme weather and building climate resilience.
Together, these examples demonstrate how climate action may deliver strategic and financial value for entities.
Module structure
- Unit 1: Climate-related opportunities overview
- Unit 2: Case study 1: decarbonising logistics – a climate-related opportunity example
- Unit 3: Case study 2: resilient transport – a climate-related opportunity example
Learning outcomes
By the end of this module, you will be able to:
- explain how responding to climate change through mitigation and adaptation may create opportunities for entities
- describe specific examples of a mitigation and adaptation opportunity
- identify climate-related opportunities relevant for your entity.
Module 6 Emissions accounting
Module 7 Scenario analysis
Module 8 Governance and risk management
Important notice
These learning materials are designed to support understanding of foundational concepts relating to climate-related financial disclosures. These learning materials do not constitute application or regulatory guidance for the preparation of climate-related financial disclosures and are not intended to represent legal or professional advice. We encourage you to seek your own professional advice to find out how the Corporations Act and other relevant laws may apply to you and your circumstances, as it is your responsibility to determine your obligations and comply with them.
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