Treasury opens consultation on climate-related transition planning guidance
As part of the Australian Government’s Sustainable Finance Roadmap, the Treasury is developing voluntary guidance on best practices for climate-related transition planning. The public consultation is open from 15 August to 24 September.
What is transition planning?
The Climate-related transition Planning Guidance consultation paper refers to transition planning as: the ongoing strategic process for identifying and responding to climate-related risks and opportunities, including setting climate ambitions and targets, and developing implementation approaches with supporting governance and reporting arrangements.
Why it matters
In Australia, climate-related financial disclosures are being phased in with large organisations required to disclose material climate-related risks and opportunities under the AASB S2 Climate-Related Disclosures for financial years commencing on or after 1 January 2025. While transition plans themselves aren’t mandatory, entities must disclose any plans they have prepared, and stakeholders may increasingly expect them.
Proposed design principles for the guidance
The draft guidance is designed to:
- Be internationally aligned
- Support domestic decarbonisation and adaptation
- Balance ambition and flexibility
- Focus on climate first, but not only (recognising the interconnected nature of sustainability objectives and the benefits of taking a more holistic approach)
Why your supply chain matters
Scope 3 emissions account for 65–95% of most companies’ carbon impact (PWC). Treasury’s guidance highlights the importance of engaging suppliers to build alignment and support climate action.
How to contribute to the consultation
Submissions to the consultation are open until 24 September 2025. Learn more and make a submission here.
How givvable's toolkit can support you
- VET new suppliers to identify climate-related actions and initiatives, and gaps
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Coming soon to givvable:
- Climate Risk & Opportunity Materiality Assessment – assess supplier relevance, risk and action
- Decarbonisation Best Practice Module – free for registered suppliers via our Supplier Engagement Portal
Learn how you can EMPOWER YOUR PROCUREMENT TEAM to support your climate-related disclosure requirements and grow a portfolio of suppliers aligned to your objectives.