From hlb.com.au: Mandatory climate reporting introduces significant responsibilities for directors, requiring them to ensure that sustainability reports comply with legislation and accurately reflect the company’s environmental impact.

Directors must exercise due care in overseeing corporate reporting and disclose material climate-related risks, business model changes, and transition plans, with potential legal liabilities for misleading information.

Entities not subject to mandatory reporting may still need to disclose material climate risks to avoid misleading stakeholders, and stringent penalties have been imposed for greenwashing.