Commonwealth Climate Disclosure Pilot

The Pilot gave practical effect to the first phase of the Commonwealth Climate Disclosure Reform that was agreed by Government and publicly released on 28 November 2023.

Detail on the policy architecture is detailed on the Commonwealth Climate Disclosure Policy section of the website.

The Commonwealth Climate Disclosure Reform is being rolled out over four years.

The Commonwealth Climate Disclosure Policy section of our website outlines the categorisation criteria for each tranche. If you are still unsure when disclosure commences for your entity, feel free to email us at climateaction@finance.gov.au for assistance.

The Pilot drew upon related polices and work underway across government to build more climate resilient and sustainable Commonwealth entities and Commonwealth companies. This included the Net Zero in Government Operations Strategy, APS Net Zero Emissions Reporting Framework, Climate Risk and Opportunity Management Program and Commonwealth Risk Management Policy. Familiarising yourself with these relevant policies and frameworks will assist you in understanding the Commonwealth Climate Disclosure Reform.

We provided a range of resources that have been developed to support you in preparing your Pilot disclosure, including:

• a Pilot Metrics and Targets Factsheet that outlined the whole-of-Australian-Government approach and methodology for emissions reporting under the APS Net Zero Emissions Reporting Framework, as well as information about the APS Net Zero by 2030 target.
• an illustrative example of a limited climate disclosure indicative of the standard required to satisfy the Pilot criteria.
• a GovTEAMS community that provided a collaborative group learning environment for departments and other entities participating in Commonwealth Climate Disclosure and other Climate Action in Government Operations activities more broadly. To join, email climateaction@finance.gov.au.

In addition to the above, the Climate Action in Government Operations Unit performed thematic reviews of entities’ climate disclosures made as part of the Pilot, prior to publication in annual reports. Contact climateaction@finance.gov.au for further information.

The Department of Climate Change, Energy, the Environment and Water (DCCEEW) has also developed a range of tools and guidance to support entities to identify, assess, prioritise and manage their climate-related risks and opportunities, as part of its Climate Risk and Opportunity Management Program . These include (but are not limited to):

• Climate Risk and Opportunity learning and development modules on APS Academy
• Climate Risk Management Guides , including the Organisation Application Guide.

You do not need to have a Chief Sustainability Officer (CSO), however you are encouraged to consider appointing a CSO as per the Net Zero in Government Operations Strategy. The role of the CSO is to champion initiatives that support climate action in government operations, such as emissions reporting, APS Net Zero (including implementation of emissions reduction actions), climate risk management and disclosure. The CSO responsibilities could be augmented to an existing role or it could be a standalone role, depending on your entities’ circumstances.

The Pilot was designed to allow entities to focus on developing the foundations and capability needed to build comprehensive climate disclosures over time. The Pilot did this by focusing in on certain climate-related governance, risk management, and metrics and targets criteria that will enable and prepare entities to better respond to strategy criteria in future reporting years of the Commonwealth Climate Disclosure Reform.

From the 2024-25 reporting period, the more fulsome CCD Requirements will be phased in for all in-scope entities. The Requirements will include expanded criteria in relation to governance, risk management, metrics and targets, as well as additional strategy criteria.

Entities were expected to outline the progress in completing their climate risk and opportunity assessment in accordance with the Climate Risk Management Organisation Application Guide. or example, if an entity had completed three out of the six steps, that level of progress would be disclosed. There was no requirement for an entity to have completed their assessment for the Pilot, or to report the outcomes of their climate risk assessment if completed.

No, the Pilot will not be subject to a specific climate disclosure audit and assurance regime. An evaluation of the Pilot was conducted in late 2024. Evaluation outcomes were used to inform the implementation of the Commonwealth Climate Disclosure Requirements in 2024-25.

The Climate Action in Government Operations Unit is designing an audit and assurance regime in consultation with the Australian National Audit Office (ANAO) and affected entities that will come into effect in future reporting years of the Commonwealth Climate Disclosure Reform.