Climate change and sustainability standards

A/Prof Mukesh Garg, 2025

Associate Professor Mukesh Garg has played a pivotal role in advancing climate change and sustainability reporting through rigorous research and influential submissions to key standard setters and regulators, both nationally and internationally. His contributions demonstrate a commitment to ensuring that financial reporting frameworks evolve in ways that enhance transparency, comparability, and accountability, thereby supporting more responsible business outcomes in the face of climate challenges.

Purpose

Associate Professor Mukesh Garg’s work is driven by the challenge of ensuring that financial and sustainability reporting frameworks evolve to meet the pressing demands of climate change. His purpose is to enhance transparency, comparability, and accountability in corporate disclosures so that investors, regulators, and society can make better-informed decisions. He aims to address the inconsistencies, vagueness, and lack of quantification in current voluntary reporting and to support the transition toward responsible, mandatory, and internationally aligned sustainability reporting. His research also aims to examine the costs and benefits of both voluntary and mandatory climate change reporting practices and their disclosures.

Practice

Mukesh has undertaken rigorous empirical research and policy engagement across multiple contexts and stakeholder groups: Conducted studies using ASX-listed firms’ data (2018–2022) to examine how climate and sustainability risks affect financial reporting, asset valuation, and audit effort; Co-authored submissions to the AASB on sustainability-related financial disclosure exposure drafts, advocating for mandatory, decision-useful reporting aligned with global frameworks like the TCFD; Prepared a report for the AUASB, highlighting the financial reporting and assurance implications of climate disclosures, and presented findings at the AUASB and IAASB Research Forums; Contributed to the IAASB’s ISSA 5000 consultation, stressing phased adoption, clarity on assurance levels, safeguards against greenwashing, and the inclusion of double materiality; Engaged with the Australian Federal Treasury on climate disclosure frameworks, advocating for mandatory, digitally enabled reporting; and Collaborated on a biodiversity disclosure study for Australian local councils, supported by a travel grant from IFAC and IPSASB, to be presented internationally at the IPSASB Board meeting and Public Sector Standard Setters’ Forum in Lisbon.

Output

Mukesh’s work has resulted in tangible engagements and dissemination activities that advance his purpose: Submissions to national regulators and standard setters (AASB, AUASB, Treasury); International academic and professional contributions to IAASB, IPSASB, and IFAC consultations; Presentations at AUASB and IAASB Research Forums (2024) to share empirical findings with practitioners and regulators; Evidence-based recommendations highlighting the real effects of climate risk reporting on asset values, audit fees, and investor trust and; Dissemination of biodiversity reporting findings to global public sector standard setters, encouraging cross-council collaboration in Australia.

Outcome and impact

Outcome for primary stakeholders (standard setters, regulators, and professional bodies): Mukesh’s recommendations have influenced debates on mandatory sustainability reporting, assurance standards (ISSA 5000), and biodiversity disclosure. His work has highlighted gaps in current frameworks and provided evidence-based pathways for regulatory reform. Regulators and professional bodies are now considering clearer, more consistent, and internationally aligned requirements for sustainability reporting and assurance, including the inclusion of illustrations on climate reporting based on industry needs; Impact on broader stakeholders (businesses, investors, governments, and society): Mukesh’s contributions through published papers strengthen investor trust, promote responsible corporate accountability, and improve the reliability of sustainability disclosures. Businesses gain clarity on reporting expectations, while governments benefit from evidence to guide climate-related policy. Society at large gains from enhanced transparency in corporate sustainability performance, stronger biodiversity investment, and more resilient financial systems prepared to manage climate risks. Mukesh has made national and international presentations to various stakeholders, including the members of the IFRS Sustainability Alliance academic series on “Firm performance, valuation and sustainability practices during the Covid-19 pandemic” and the Herald Sun in the article “Sustainability saves small businesses some cheddar this tax season”. His work informs standard-setters, regulators, and practitioners, including investors, on the costs and benefits of both voluntary and mandatory climate change reporting practices and their disclosures. He also brings his research into the classroom and helps students understand and navigate the challenges related to climate change.