Understanding Government Trading Enterprises (GTEs) and Climate Disclosure

What Is a Government Trading Entity (GTE)?

In Western Australia, where we're headquartered, GTEs are state-owned businesses with commercial objectives. Examples include:

• Water Corporation (water services)

• Western Power (electricity transmission)

• Synergy (energy retail and generation)

  
  

Other states use different terms for similar entities:

• NSW: State-Owned Corporations (SOCs)

• QLD: Government Owned Corporations (GOCs)

  
  

These entities differ from traditional government departments. GTEs operate more like private businesses. They have balance sheets, face financial risks, and carry shareholder expectations. This commercial structure is why they are included under mandatory sustainability disclosure regimes, particularly for climate-related risks.

Infrastructure and services like ports are often state-owned but commercially operated.

Why Is Mandatory Climate Reporting Being Extended to GTEs?

Government-owned businesses manage billions in assets. They are critical to state resilience, especially in sectors like water, energy, and transport. These businesses are:

• Materially exposed to physical and transition climate risks

• Key actors in decarbonisation and adaptation

• Publicly accountable and expected to lead on transparency

  
  

Under Australia’s proposed Australian Sustainability Reporting Standards (ASRS), many GTEs will likely fall into Group 2 or Group 3 reporters by FY26. Some firms may opt to align early, demonstrating leadership and preparing for future compliance.

Different States, Different Approaches

State responses vary significantly across the country:

• In WA, GTEs are aligning with the Department of Water and Environmental Regulation (DWER) Climate Change Risk Assessment Framework, which aligns with ASRS S2 and the Task Force on Climate-related Financial Disclosures (TCFD). It encourages scenario analysis, governance integration, and risk management practices, building internal capability and setting the stage for disclosure.

• Some entities in NSW and QLD have begun aligning with the TCFD, particularly those with strong credit ratings or market-facing roles.

• Others are in preliminary phases, awaiting guidance from state treasuries or infrastructure bodies.

  
  

This underscores the need for a tailored approach. GTEs must navigate their own state’s expectations while preparing for national regulation.

The Case for Sustainability in GTEs

Why Sustainability Matters

As GTEs face increasing pressure from stakeholders and the community, sustainability is not just a buzzword. It represents a way to ensure long-term viability. By integrating sustainability principles, GTEs can manage risks and seize opportunities associated with climate change. This proactive stance can also build trust among the public and stakeholders.

Climate Leadership in the Public Sector

The key to effective compliance lies in leadership. GTEs have the chance to lead by example in climate governance. By prioritizing sustainability and transparency in their operations, these entities can become role models for accountability in the public sector.

How Perspektiv Can Help

Perspektiv works with both government departments and trading enterprises to embed sustainability and prepare for climate disclosure. Our services include:

• Clarifying obligations: We help you understand reporting requirements based on your state, entity type, and reporting group.

• Gap assessments: We conduct evaluations against ASRS S2 and ISSB-aligned frameworks.

• Scenario analysis: Our team analyzes physical and transition climate risks to inform your strategy.

• Internal capacity building: We support the development of skills needed for long-term, embedded reporting.

• Disclosure development: We ensure clarity, credibility, and compliance in your reports.

  
  

We also help public entities integrate DWER’s climate risk framework as a stepping stone to full ASRS S2 alignment.

Reporting Is Coming. The Time to Prepare Is Now.

Mandatory climate-related disclosure isn’t just a regulatory hurdle; it’s an opportunity to build stronger, more resilient government businesses. For GTEs, it’s a chance to lead in climate governance and demonstrate real accountability to communities and stakeholders.

No matter what Australian state you're in, Perspektiv is ready to support your journey.

Get in touch to learn how we can support your climate reporting journey.

Conclusion

As GTEs evolve in their sustainability practices, the path may be challenging. However, with effective frameworks in place and support from experts, compliance will not only be achievable but meaningful. By embracing these changes now, GTEs can lead the way in tackling climate risks head-on and ensuring their services continue to benefit the community sustainably.

In conclusion, the era of transparency and accountability in climate-related reporting is here. Organisations must adapt to this evolving landscape, embracing sustainability as an integral part of their mission. The time to act is now, and with the right guidance, GTEs can navigate these requirements successfully.