Mandatory climate disclosure commenced for Group 1 entities
TCFD
The global framework now embedded in Australian law
Survey Evidence: AICD Director Sentiment Index 2026 — climate and ESG risk ranked the #3 board priority, with mandatory climate disclosure now in force for large Australian entities under Treasury legislation.
Answer 8 questions to assess your board's climate governance readiness. Results are benchmarked against TCFD, ISSB S2 Climate Standard, ASX Corporate Governance Principles 4th Edition, and Australia's mandatory climate disclosure regime.
Question 1 of 8 — TCFD Adoption
Has your board formally adopted the TCFD framework (or ISSB S2) for climate risk governance and disclosure?
Question 2 of 8 — Climate Risk Integration
How is climate risk integrated into your organisation's enterprise risk management framework?
Question 3 of 8 — Scenario Analysis
Has your board conducted climate scenario analysis (physical and transition risk)?
Question 4 of 8 — Scope 1/2/3 Emissions
Does your board have visibility of your organisation's Scope 1, 2, and 3 greenhouse gas emissions?
Question 5 of 8 — Board Climate Expertise
Does your board include directors with substantive climate, sustainability, or ESG expertise?
Question 6 of 8 — Climate Disclosure Readiness
How prepared is your organisation for mandatory climate disclosure obligations (AASB S2 / Treasury legislation)?
Question 7 of 8 — Transition Plan
Has your board reviewed and approved a climate transition plan aligned to a recognised pathway?
Question 8 of 8 — Board Climate Oversight
How frequently does the full board receive a structured climate risk and opportunity update?
Noventum Advisory is analysing your governance posture…
Analysing TCFD alignment…
Climate Governance Readiness Report
Overall Governance Maturity Score
38 / 100
Based on your 8-question assessment
DEVELOPING — Material climate governance gaps require urgent board attention
Domain Scores
TCFD / ISSB S2 Alignment30%
TCFD not formally adopted. Disclosure obligations imminent. Board is exposed to regulatory and litigation risk.
Risk Integration40%
Climate risk referenced in ERM but not formally assessed. Scenario analysis not yet undertaken.
Emissions Disclosure35%
Scope 1 & 2 measured but Scope 3 absent. No independent assurance. Mandatory disclosure readiness is low.
Board Climate Expertise45%
General ESG awareness present but no dedicated climate expertise. Skills gap is a governance priority.
Transition Planning25%
No board-approved transition plan. Absence of a credible plan creates investor and stakeholder risk.
Oversight Cadence55%
Climate discussed annually but not as a standing agenda item. Oversight frequency below best practice.
Recommended Governance Frameworks
Immediate
AASB S2 & Treasury Climate Disclosure
Map your mandatory disclosure obligations. Group 1 entities must disclose for FY2025. Engage your external auditor to assess current readiness and identify gaps urgently.
30 Days
TCFD Four Pillars — Board Implementation
Structure board climate governance across TCFD's four pillars: Governance, Strategy, Risk Management, Metrics & Targets. Assign board committee ownership for each pillar.
60 Days
ISSB S2 Climate Standard — Gap Analysis
Commission a gap analysis between your current climate disclosures and ISSB S2 requirements. Prioritise: climate-related risks and opportunities in strategy, scenario analysis, and emissions metrics.
Prioritised Action Roadmap
1
Adopt TCFD/ISSB S2 and map mandatory disclosure obligations
Formally resolve at board level to adopt TCFD/ISSB S2 as your climate governance framework. Engage external counsel and your auditor to map Group classification and disclosure timeline.
⏱ Target: 30 days · Owner: Board Chair + General Counsel
2
Commission climate scenario analysis
Engage an independent climate risk specialist to conduct physical and transition risk scenario analysis for your organisation. Results must inform both strategy and risk management.
⏱ Target: 60 days · Owner: Risk Committee + CFO
3
Develop a board-approved climate transition plan
Engage a sustainability advisor to develop a credible transition plan aligned to a recognised pathway (1.5°C, net zero 2050). Board approval and public disclosure are essential.
⏱ Target: 90 days · Owner: Board + CEO + CFO
4
Commission Scope 3 emissions measurement
Engage an emissions measurement specialist to quantify your Scope 3 emissions. Independent assurance of all three scopes is required for Group 1 mandatory disclosure.
⏱ Target: 90 days · Owner: CFO + Sustainability Lead
5
Appoint a climate/ESG expert to the board
Include climate and ESG expertise in your next director skills matrix assessment. Consider a dedicated search for a director with TCFD/sustainability credentials for your next board appointment.
⏱ Target: Next board renewal cycle · Owner: Nominations Committee
Want expert help actioning these results?
Book a free 30-minute strategy call — no obligation, no pitch, just actionable advice.