Sustainability in the workplace is no longer a soft aspiration for Australian businesses. For a growing number of organisations, it is now a regulated reporting obligation with legal accountability attached. And for those not yet directly captured by the legislation, the ripple effect through procurement and supply chain expectations is already being felt.
If your business is reviewing how you source corporate apparel, uniforms, or workwear, here is a straightforward and accurate guide to what has changed, what is coming, and how to make purchasing decisions you can stand behind.
Where the legislation sits in 2026
Australia's mandatory climate-related financial disclosure regime, established through the Treasury Laws Amendment Act 2024 and administered under Australian Sustainability Reporting Standards (AASB S1 and S2), is being phased in across three groups of businesses.
Group 1, the largest Australian entities with consolidated revenue of $500 million or more, gross assets of $1 billion or more, or 500 or more employees, has been reporting since financial years commencing 1 January 2025. First full reports for these entities are expected by mid-to-late 2026.
Group 2, covering entities with $200 million or more in revenue, $500 million or more in assets, or 250 or more employees, commences reporting from financial years beginning on or after 1 July 2026.
Group 3, covering smaller entities with $50 million or more in revenue, $25 million or more in assets, or 100 or more employees, follows from 1 July 2027.
These thresholds and dates are drawn directly from the Treasury Laws Amendment Act 2024 and the Australian Accounting Standards Board's published standards. If you are unsure which group your business falls into, your accountant or legal adviser is the right first call.
The supply chain effect matters for businesses of all sizes
Here is where it becomes relevant for businesses who may not yet be directly captured by the reporting requirements. Group 1 companies are now required to account for their Scope 3 emissions, which includes emissions from their supply chains. The practical consequence of this is already being felt. One documented example involves a large Australian consumer goods company that sent ESG compliance questionnaires to its top 200 suppliers as part of its own Group 1 reporting obligations. Sixty per cent of those suppliers could not provide the requested data.
If your business supplies to large corporates or government organisations, the question of what your sustainability credentials look like is increasingly something your customers will ask, regardless of your own reporting obligations.
What credible sustainability looks like in corporate apparel
The apparel industry has a greenwashing problem. Eco-friendly and sustainable are easy words to use and difficult to verify. When assessing workwear and corporate apparel suppliers, the claims worth taking seriously are specific, independently certified, and documented.
Certified organic cotton under the Global Organic Textile Standard (GOTS) is grown without synthetic pesticides or fertilisers and verified through independent audit. Recycled polyester derived from post-consumer plastic waste has a measurable and documented environmental benefit. Supply chain transparency, where a brand can tell you where its garments are produced and under what conditions, is a meaningful indicator of accountability and increasingly part of what procurement teams need to document.
AS Colour, one of the brands available through Workwear Direct, has made publicly documented progress in this area. Approximately 10 per cent of their product range uses GOTS certified organic cotton, with a stated commitment to expanding that proportion. Their labour practices are independently rated, with supply chain traceability and factory auditing across all final-stage production.
Durability is a legitimate sustainability strategy
The most practical sustainability question to ask about any workwear purchase is how long it lasts. A quality garment that holds its construction, colour, and fit across two or more years of regular wear and commercial laundering has a substantially lower environmental footprint than a cheaper alternative requiring replacement twice in the same period. Buying better and buying less is a genuine and defensible sustainability approach, and it is one the leading corporate apparel brands we work with are built around.
Our own position as a supplier
We will not overstate where the workwear industry sits on sustainability right now. Progress is real, more brands are investing in certified materials, ethical manufacturing, and supply chain transparency than at any previous point, but the journey is ongoing and some brands are further along than others.
What we can offer is an honest conversation about what is available, what is independently verified, and what makes practical sense for your team and your reporting context. Our partnership with Social Engine Australia, an ACNC registered charity and Social Traders certified social enterprise, is a tangible part of our own social value as a supplier, supporting real employment pathways for young Australians aged 16 to 25 through our Victorian logistics operation.
If sustainability is becoming a more significant consideration in your procurement decisions, we are glad to help you navigate it.
Contact our team to discuss your corporate apparel and workwear requirements.
