Tranche 1 and Tranche 2
Year 1 Commonwealth Climate Disclosure Requirements
Year 2 Commonwealth Climate Disclosure Requirements
Full (Year 3) Commonwealth Climate Disclosure Requirements
Tranche 3
Year 1 Commonwealth Climate Disclosure Simplified Requirements
Full (Year 2) Commonwealth Climate Disclosure Simplified Requirements
Entities in Tranche 1 and 2 of the Commonwealth Climate Disclosure (CCD) initiative have begun reporting against the CCD Requirements.
A suite of Application guidance is available to help entities as they develop their climate disclosures. Application guidance is updated and added to on an ongoing basis.
Refer to Commonwealth Climate Disclosure (RMG 140) for specific information on the Commonwealth Climate Disclosure initiative policy.
The reporting requirements follow the Climate-related Disclosure Standard AASB S2 with changes to suit the Commonwealth public sector.
Sequencing of Requirements
Entities will begin reporting in stages over a period of 3 years. This phased approach helps build capability and improve how climate risks are understood and managed. The reporting requirements increase for each group (Tranche) over time.
Tranche 1 began reporting using the Year 1 Requirements in their financial year (FY) 2024-25 reporting period. They will apply the Year 2 Requirements in their FY2025-26 and the Full (Year 3) Requirements from FY2026-27 onwards. Tranche 1 entities published their Year 1 disclosures within their 2024-25 annual reports, with future reports to be published in the Transparency Portal and referenced within their annual reports.
Tranche 2 will use the Year 1 Requirements in their FY2025-26 reporting period. They will use the Year 2 Requirements in their FY2026-27 and the Full (Year 3) Requirements from FY2027-28 onwards. Tranche 2 entities will publish their climate disclosures in the Transparency Portal and will reference the disclosure within their annual reports.
The Full (Year 3) Requirements represent the ongoing Requirements for Tranche 1 and Tranche 2 entities.
Simplified Requirements
Tranche 3 entities will begin reporting in the FY2026-27 reporting period using the Year 1 Simplified Requirements. From FY2027-28 onwards, they will report using the Full (Year 2) Simplified Requirements which represent the ongoing Requirements for Tranche 3 entities. Tranche 3 entities will publish their climate disclosures on the Transparency Portal and will reference the disclosure within their annual reports.
Structure of climate disclosures
Disclosures are structured under 4 pillars:
- Governance
- Strategy
- Risk management
- Metrics and targets.
Entities can choose to include extra information beyond what is required for their reporting year.
More detailed disclosure requirements are introduced gradually over time to support capability development and improve climate reporting.
Governance
Processes, controls, and procedures used to identify, prioritise, monitor, manage and oversee climate-related risks and opportunities
Strategy
Strategic approaches used to manage climate-related risks and opportunities and reduce emissions over time
Risk management
Methods used to assess an entity's overall risk profile and embed climate risk management practices across its organisation
Metrics and targets
Processes and methodologies an entity uses to track its performance and meet its climate targets
Entities may choose to start reporting before their scheduled reporting date. Early adoption of CCD helps build internal capability and shows leadership in climate action and risk management.
To find out which Tranche an entity belongs to, refer to the Commonwealth Climate Disclosure Policy.
Frequently asked questions
These questions will be updated during implementation to include additional feedback and questions received.
Under section 516A of the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act), Commonwealth entities and Commonwealth companies are required to disclose certain information relating to Ecologically Sustainable Development in their Annual Reports. The Environment Protection Reform Act 2025 amends section 516A of the EPBC Act to clarify climate risk reporting obligations (i.e. Commonwealth Climate Disclosure) as part of the broader environmental reporting by Commonwealth entities and Commonwealth companies in their annual reports.
For further information and updates on the EPBC Act reform please refer to the Department of Climate Change, Energy, the Environment and Water’s (DCCEEW) EPBC Act Reform webpage.
Commonwealth companies that meet the requirements under section 292A of the Corporations Act must continue to undertake sustainability reporting in accordance with the Corporations Act.
A range of resources is available to help Commonwealth entities prepare their climate disclosures. Some materials are available now, while others will be added to the Application guidance webpage over time.
The application guidance includes:
- factsheets on key parts of the disclosure criteria
- example disclosures
- links to annual reports from previous reporting periods
- online modules on various Commonwealth Climate Disclosure and associated topics.
In addition to the application guidance, the Department of Finance has published Commonwealth Climate Disclosure (RMG-140), which includes additional information on the process of disclosing. The Climate Action in Government Operations Unit at the Department of Finance can also review climate disclosures before they are published in annual reports. Contact climateaction@finance.gov.au for further information.
DCCEEW has developed tools and guidance to help entities identify, assess, prioritise, and manage climate-related risks and opportunities. These resources are part of the Climate Risk and Opportunity Management Program (CROMP) and include:
- learning and development modules on APS Academy
- Climate Risk Management Guides, including the Organisation Application Guide
- the Climate Risk Digital Tool.
The Commonwealth Climate Disclosure initiative has been designed to align with other programs that support climate action. This helps reduce duplication and makes it easier for departments to meet their reporting requirements.
The initiative works alongside:
- DCCEEW’s Climate Risk and Opportunity Management Program (CROMP)
- greenhouse gas emissions reporting under the Emissions Reporting Framework
- the APS Net Zero by 2030 Target.
Understanding these related policies and frameworks will help entities to prepare climate disclosures.
Contact us
Please email climateaction@finance.gov.au to:
- access support for implementation
- confirm tranche and reporting requirements
- opt in to reporting
- request access to the Climate Action in Government Operations community of practice on GovTEAMS.
