Investing.com -- Jefferies Australia reported Thursday that while 36 companies have filed reports under Australia's new mandatory climate disclosure standards, only 11 have quantified how climate risk affects earnings.

The new Australian Sustainability Reporting Standards require companies to provide information about climate-related financial risks and opportunities. The disclosures fall under Chapter 2M of the Corporations Act 2001.

Jefferies found that most companies perform climate modeling but share only high-level results. Few connect the impacts to their financial statements. The firm noted that while companies widely disclose climate exposures, capital allocation to address these risks remains limited and is rarely tied to remuneration or internal carbon pricing.

The analysis revealed that transition plans in recent mandatory reports are less detailed than previous voluntary disclosures. More than 80% of companies used first-year relief provisions to delay Scope 3 emissions reporting, which covers indirect emissions across the value chain.

Jefferies stated that companies acknowledge climate risk but do not always demonstrate how it translates into strategy, transition plans, or business models designed for a lower-carbon economy.

The Australian Securities and Investments Commission has included these disclosure issues in its 2026-27 surveillance program. ASIC Commissioner Kate O'Rourke stated that high-quality disclosure is necessary for market transparency and informed capital allocation.

The mandatory climate disclosures were introduced as Australia's major superannuation funds monitor corporate climate action through stewardship programs.