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AU Financial Review

Smart ESG compliance: turning regulation into strategic advantage

Deb Coram, CEO of compliance technology firm Safetrac, says ESG performance must be treated as operational infrastructure -not as a communications exercise. She says that integrating ESG into core compliance systems enables organisations to track obligations in real time, escalate emerging risks, and maintain audit-readiness without overburdening staff. 'The businesses that will thrive under the new regime are those that move beyond checklists and embed ESG into their daily workflows,' Coram says. 'Technology platforms allow that by automating reporting, centralising documentation and supporting consistent oversight across multiple compliance domains.' Boards, too, are under mounting scrutiny under the new regulatory regime. Mark Rigotti, CEO of the the nation's peak body for corporate leaders, the Australian Institute of Company Directors, warns that a superficial approach to ESG can expose directors to allegations of greenwashing, reputational harm, and broader governance failure. 'ESG is not just a disclosure issue - it's a governance issue,' Rigotti says. 'Effective oversight depends on capability, clarity and alignment with strategy.' The technology imperative Digital compliance platforms are increasingly seen as essential to this shift. By reducing the manual overhead of ESG tracking, they enable faster response times, clearer audit trails, and a higher standard of accountability. Coram says Safetrac and similar systems help organisations stay in lockstep with regulatory change while aligning ESG efforts with internal risk frameworks. 'Good compliance systems do more than keep organisations out of trouble—they provide the visibility needed to act proactively, not reactively,' she says. This is particularly relevant in Australia, where ESG disclosure is becoming both more mandatory and more sophisticated. Without structured systems, organisations face a growing risk of misalignment with regulators, investors, and customers alike. Training and capability uplift Beyond systems, people remain a critical point of failure - or success. ESG obligations span diverse areas including climate risk, anti-bribery, human rights, and diversity. Coram stresses that high-quality, targeted training is essential to operationalising these requirements across all business levels. 'It's not enough to have the policy -you need the cultural capability to deliver on it,' she says. 'Integrated training builds both awareness and accountability, and when embedded into broader compliance frameworks, it supports measurable, enforceable outcomes.' Rigotti says that boardroom capability is equally important. Directors cannot provide effective stewardship if they lack familiarity with ESG risks and regulatory expectations. He advocates for ESG to be embedded within governance and risk oversight structures - through sustainability committees, cross-functional engagement and ongoing director education. The future role of boards Coram and Rigotti agree that boards must shift from passive compliance to active stewardship - assessing their ESG maturity with the same rigour as financial and operational risks, and ensuring they have the tools and expertise to keep pace with evolving global standards. Guides like the AICD's Director's Guide to Mandatory Climate Reporting offer a starting point, but technology platforms offer the executional capability - centralising ESG metrics, aligning them to strategy, and ensuring disclosures are credible and consistent. 'This isn't just about avoiding penalties,' Coram says. 'It's about securing investor confidence, maintaining reputational integrity and reinforcing a sustainable corporate identity.' For boards navigating economic uncertainty and rising regulatory expectations, aligning ESG with enterprise strategy is no longer optional. Done well, it delivers not just compliance, but competitive edge.