Sustainability reporting (Part 2)

Why this is important

The government has a long-term target for the state to reduce greenhouse gas emissions to zero by 2045. This includes reducing greenhouse gas emissions to 75–80 per cent below 2005 levels by 2035. The Climate Action Act 2017 also requires the government to consider the impacts arising from climate change when it makes decisions or takes actions.

Since July 2022, the Department of Treasury and Finance has required public entities to disclose information about their energy and resource consumption and environmental performance in their annual reports. Each entity must also disclose:

• its approach to understanding and managing climate-related risks and opportunities and (where possible) a description of its planned responses
• a description of its environmental management system, how it conforms with the standards and when it was last audited
• any relevant targets the entity has set for its own operations.

Reliable disclosure reporting is essential for the government to meet its emissions reduction targets and to understand the exposure and vulnerability of government assets and operations to climate risks.

Assessing the completeness and reliability of both agency and whole of government emissions reporting and climate risk assessments will provide insight into the maturity of their environmental management systems and how prepared they are to manage the impacts of climate change.

What we plan to examine

We plan to examine if Victorian Government departments' climate-related disclosure reporting is complete and reliable.

Who we plan to examine

Department of Energy, Environment and Climate Action 

Department of Treasury and Finance

A selection of departments and agencies

Further information

This builds on our report Sustainability Reporting by Water Corporations (2026).