Global sustainability consultancy Edge Impact and cleantech firm Greener have joined forces to develop a new compliance platform that will help Australian businesses reduce an estimated $6.5 billion in climate-related compliance costs.
Australia’s new climate disclosure framework requires more than 5,000 Group 2 and 3 entities to measure, report and mitigate climate risks in line with Australian Sustainability Reporting Standards (ASRS) and AASB S2 standards, which Treasury estimates will see transition costs of up to $1.3 million per organisation and annual reporting expenses of up to $700,000.
According to Edge Impact – an RSK company – these rising costs are diverting potential investment from sustainability efforts, technology upgrades and skills development, while placing a compliance burden on corporate climate action.
Edge Impact CEO Alison Rowe says mandatory reporting is reshaping corporate spending priorities in unintended ways.
“It’s great to see climate hard-wired into the economy,” she said. “However, as a result, we’re starting to see businesses redirect what were sustainability budgets into disclosure and reporting.
“Even some of the most proactive companies have started to shelve innovation programs to keep up with reporting requirements. That’s an unintended consequence of mandatory reporting, as compliance was meant to accelerate climate action, not suffocate it.”
To conquer this challenge, Edge Impact and Greener have introduced their compliance platform, which is designed to streamline climate reporting and cut preparation times from years to months.
Developed using Greener’s datasets and bespoke AI models, combined with Edge Impact’s regulatory expertise, the platform seeks to lower preparation expenses which will free up money for reinvestment into genuine decarbonisation initiatives.
Rather than stopping at disclosure like most solutions, it is designed to transform compliance into competitive advantage, meaning organisations can meet regulatory demands faster as well as build internal capacity, attract sustainability-focused investors and future-proof their businesses.
Open to businesses and consultants across all sectors, the platform has seen early adopter pilots identify 23 percent faster emissions measurement cycles, while some clients have forecast savings of up to 35 percent by year’s end.
Tom Ferrier, CEO of Greener, said the goal is to provide teams with the technology to dramatically scale their impact.
“By automating complex, labour-intensive reporting tasks and delivering audit-ready outputs, we’re enabling Edge Impact’s consultants to work faster and deliver deeper sustainability insights,” he said.
“In many cases, this will be at a much lower cost than what’s been forecast by the government.”
According to Edge Impact, more than 80 per cent of Australian companies still lack mature sustainability frameworks, with many now scrambling to build reporting infrastructure before the 2026 deadline.
However, organisations that are further down the track in their ESG programs are reportedly struggling to balance labour-intensive disclosure workloads, which is having an impact on the resources and capital needed for climate solutions.
Rowe likens this situation to the introduction of the Modern Slavery Act, which she explains saw many organisations tick the boxes for the law while taking the time to implement substantive change.
“With climate change, we don’t have the luxury of five years for impact to follow compliance. The next 18 months will see whether Australia gets ahead or stuck in the admin,” she said.
“The businesses that will thrive in the coming decade are the ones that look beyond the checkbox. They will take compliance as a launching pad to unleash capital, develop capability and drive the innovation Australia must have to achieve its aspirations.”
