Discover how mandatory climate reporting can strengthen your ESG strategy

Turning sustainability reporting into a competitive advantage

Mandatory climate reporting is already a requirement for Australia’s largest companies and from 2026–2027 it will extend to the wider business community, bringing both a compliance challenge and a powerful strategic opportunity.

For Queensland organisations, the timing could not be more significant. With more than $100 billion of infrastructure investment planned in the lead-up to the Brisbane 2032 Olympic and Paralympic Games, businesses that demonstrate clear ESG (Environmental, Social and Governance) commitments and robust sustainability reporting will be best placed to secure a place in the procurement pipeline.

At Losee Consulting, we help organisations transform compliance into competitive advantage. As sustainability consultants with a strong academic and industry grounding, we work alongside businesses not only to prepare for mandatory climate disclosures but also to embed ESG reporting into broader strategy, building long-term resilience and unlocking new market opportunities.

Climate reporting is a catalyst for ESG strategy

Australia is phasing in mandatory climate-related financial disclosures aligned with international frameworks such as the ISSB (International Sustainability Standards Board) and TCFD (Task Force on Climate-related Financial Disclosures). While some entities will not be legally required to report until 2027, delaying action is risky.

Preparing now offers three immediate benefits:

1. Stronger compliance readiness: By beginning the process early, companies can build robust systems, data sets and governance processes that avoid last-minute scrambles when disclosure becomes compulsory.
2. Strategic alignment: Reporting provides insights into risks and opportunities that inform ESG strategy, ensuring decisions are both sustainable and commercially sound.
3. Market positioning: Businesses that act early signal leadership to customers, investors and regulators.

The Queensland Government’s supply chain toolkit reinforces that sustainability policies and resilience planning are no longer optional; they are essential to demonstrating a company’s ‘social licence to operate’.

We’ve prepared a guide to mandatory reporting  that sets out what the legislation requires and how you can get started.

ESG benefits beyond compliance

A strong ESG strategy, informed by climate reporting, creates tangible business value.

Financial and operational benefits

• Cost reduction: Initiatives such as energy efficiency, waste reduction and resource conservation deliver significant long-term savings.
• Top-line growth: Demonstrating and documenting your commitment to sustainable practices can help win contracts and attract customers who prioritise responsible business practices.
• Improved financial performance: Companies with established ESG frameworks typically enjoy better access to capital, reduced borrowing costs and improved investor confidence/interest.

Risk management

• Risk mitigation: ESG reporting enables early identification of regulatory, reputational and operational risks.
• Supply chain resilience: Integrating ESG principles strengthens procurement and ensures alignment with the expectations of government procurement and major contractors.

Reputation and stakeholder relations

• Enhanced reputation: Transparent climate and sustainability reporting improves trust among regulators, customers and communities.
• Talent and capital attraction: Strong ESG credentials draw passionate and skilled employees and investors who increasingly demand responsible practices.(Berns et al, The Business of Sustainability)

The Brisbane 2032 opportunity

The lead-up to the Brisbane 2032 Olympic and Paralympic Games is has a pipeline of  more than $100 billion in infrastructure and associated services investment in Queensland. This includes not only core projects such as transport, venues and housing, but also indirect services, everything from catering and accommodation to IT, professional services and logistics. As well as tourism and other key economic focus areas for government.

The Queensland Government has made clear that all proposals must include ESG policies or documented sustainability practices to be considered in procurement processes. This applies to businesses of all sizes: from Tier 1 contractors to small and medium enterprises seeking to participate as sub-suppliers.

For businesses that act early, ESG reporting becomes more than compliance, it becomes a passport to participate in this once-in-a-generation pipeline of opportunities. Aligning with climate-positive commitments for Brisbane 2032 also positions companies in step with global expectations for sustainable mega-events.

How ESG reporting strengthens your approach

Mandatory climate reporting provides the data, insights and structure needed to embed ESG throughout business operations. When integrated effectively, it strengthens other sustainability tools and frameworks:

• Materiality Matrix: Climate disclosures highlight risks and opportunities, helping businesses identify which ESG issues matter most to stakeholders.
• IS Ratings: For infrastructure and construction, ESG reporting supports alignment with the Infrastructure Sustainability (IS) rating framework, boosting project credibility.
• SMART ESG targets: Clear and measurable targets ensure organisations can monitor progress, report transparently and continuously improve performance.

These tools work together to create a cycle of improvement, moving businesses from compliance to leadership.

Preparing now: a competitive advantage

Even though mandatory reporting will be phased in, the Queensland supply chain toolkit highlights that environment, sustainability and resilience are already required elements for suppliers. Waiting until 2027 risks being excluded from major tenders and losing credibility with stakeholders.

By acting now, businesses can:

• Document sustainability initiatives, creating a track record that enhances bids for projects such as Brisbane 2032 and related services.
• Develop governance systems that meet both legislative requirements and client expectations.
• Build the culture, processes and reporting capability needed for long-term success and compliance.

Sustainability consultants like Losee Consulting can provide tailored pathways that turn these steps into practical outcomes, ensuring that ESG reporting is embedded as a driver of growth rather than just a compliance task.

Mandatory climate reporting is an enabler

Mandatory climate reporting marks an important shift in the way businesses account for their environmental and social impacts. For some, the requirements have already begun and for many more they will arrive in 2026 and 2027. By starting early, Queensland organisations can use the process not only to prepare for compliance but also to strengthen their ESG strategies, improving risk management, operational efficiency and stakeholder confidence. In doing so, they will be better positioned to contribute to the state’s major infrastructure pipeline in the lead-up to Brisbane 2032 building the resilience you’ll need for the decade ahead.

How to start your ESG strategy

At Losee Consulting, we bring deep expertise in sustainability reporting, ESG strategy and climate risk management. As Queensland-based sustainability consultants, we understand the legislative landscape, local procurement requirements and the unique opportunities presented by Brisbane 2032.

We work with businesses to:

• Develop tailored ESG strategies aligned with mandatory climate reporting requirements.
• Create sustainability reporting systems that satisfy regulators and impress procurement panels.
• Strengthen resilience by embedding governance, ethical supply and environmental management across operations.

You can explore our services for a broader view of how we support organisations across ESG, risk management, and sustainability strategy.