The big end of town will be the first to be covered by a climate disclosure regime under proposed legislation, but not until 2025.
Many investors, including superannuation funds that manage the savings of millions of Australians, have been calling for greater disclosure with billions of dollars needed to shape a net-zero economy.
The bill introduced to federal parliament by Treasurer Jim Chalmers on Wednesday is the first step under a proposed framework that will cover thousands of companies and organisations in coming years.
"These new laws will modernise our financial system, provide greater information and clarity to investors, and incentivise investment in the net zero transformation," Dr Chalmers said.
"A rigorous, internationally-aligned and credible climate disclosure regime will support Australia's reputation as an attractive destination for international capital and incentivise investment in the energy transformation," he said.
But starting to put climate reporting on par with traditional "financials" has been delayed for six months after intensive lobbying.
Initially slated to begin on July 1, Dr Chalmers said reporting requirements would start on January 1, for Australia's largest listed and unlisted companies and financial institutions and others will be phased in over time.
The Business Council of Australia had called for a delay to at least 2025, and a longer phase-in period, so companies could get their climate "training wheels" on.
The Australian Council of Superannuation Investors welcomed the release of legislation that aims to strengthen the management of climate-related risks and investment opportunities.
"Mandatory climate reporting will allow for a better picture of how climate change is being managed across the economy," the industry group's chief executive Louise Davidson said.
Recent research by the group found listed companies were well placed for mandatory reporting, with 70 per cent of the top 200 companies listed on the ASX already reporting voluntarily under an international climate-related disclosures framework.
To fix a long-standing gap in financial system regulatory arrangements, the bill also includes measures to protect financial market infrastructure in the event of a crisis.
If passed by parliament, the Reserve Bank will be able to intervene and quickly resolve crises impacting critical financial market infrastructure and ensure continuity of clearing and settlement services.
