Why ESG Matters for Councils 

Councils are on the frontline of climate change, managing community resilience, infrastructure, and environmental assets. Climate adaptation and ESG reporting are becoming essential for governance and community trust. 

Current Readiness Levels 

• 72% of councils have been impacted by natural disasters in recent years. 
• Two-thirds of CEOs said their Council had assessed the impacts of climate-related risks and opportunities on its business and operations to some or a great degree. 
• Only 53% have published a climate emergency or adaptation plan. 
• ESG preparedness has slipped year-on-year, with 30% of CEOs saying they are not prepared, and only 3% of CEOs saying they are extremely prepared. 



CEO Perspectives on Climate Action 

Tammi Rose, CEO of Yarra Ranges Council, stresses the urgency: 

“Through consistent communication, strategic integration and collaborative engagement, CEOs can lift climate risk awareness and activate meaningful adaptation planning across the sector.” 

Her perspective is grounded in lived experience. The Yarra Ranges community has faced floods, bushfires and devastating storm events in recent years, forcing councils to move beyond plans and into action. Tammi highlights that CEOs play a unique role in translating complex climate data into strategic priorities that both councillors and communities can understand. 

Pathways to Progress 

While awareness of ESG and climate risks is increasing, the Index shows many councils are still at the early stages of translating intent into measurable action. CEOs emphasise that progress requires a structured, whole-of-organisation approach that embeds climate considerations into the very core of planning and decision-making. 

• Integrate ESG into Council planning, asset management, and financial strategies. 
• Partner with community and state government for shared climate resilience. 
• Translate climate risks into clear, actionable reporting outcomes. 

Conclusion: 

The sector is moving from awareness to action, but faster progress is critical. Councils that embed ESG into governance and culture will lead the way in building resilient communities. 

👉 Download the full Australian Local Government CEO Index 2025 to see how ESG is shaping the sector. 

About Davidson: 

Davidson is a proudly Australian company with more than 30 years of experience in enhancing workplace performance. With specialist teams in Business Advisory, Search and Recruitment, and Technology Consulting, Davidson partners with clients to deliver sustainable, outcome-driven solutions that make a lasting impact for organisations and communities. 

Contact us today to discuss how we can support your council to enhance leadership, strengthen governance, and deliver transformation.