Australia stares down ESG turning point

This year promises to see aspiration meet accountability for ESG practises and responsible investing, thought leaders say.

- Angelique Minas

Dugald Higgins Zenith Investment Partners

As regulatory headwinds intensify amid an increasingly polarised political climate, Australian businesses and investors are facing an environmental turning point in 2026.

Voluntary ESG commitments are giving way to mandatory disclosure requirements that will continue to reshape the way companies report on climate, diversity and governance.

In 2026, ISS managing director and senior consultant of sustainability strategy Julia Leske is “cautious but optimistic, especially for the Australian market” when it comes to ESG and responsible investing.

Amid domestic regulatory tightening, including mandatory climate reporting and ASIC crackdowns on greenwashing, compliance and disclosure has undergone significant internal work and improvement over the last year, Leske says.

This year stands as a pivotal point for sustainable investing and ESG practises in Australia, according to Zenith Investment Partners head of responsible investment and real assets Dugald Higgins.

“In a world of mad macro manipulation and rising geopolitical tensions, thinking about ESG and sustainability is shifting to embrace a more pragmatic realism,” he says.