ASIC has released for comment a draft regulatory guide on the sustainability reporting regime – draft Regulatory Guide 000 Sustainability reporting (Draft RG 000).
From 1 January 2025, a number of large Australian businesses and financial institutions will be required to prepare annual statutory sustainability reports containing climate-related financial disclosures.
The draft guide is for entities required to prepare a sustainability report under Chapter 2M of the Corporations Act. This may include companies (including registered corporations under the National Greenhouse and Energy Reporting Act 2007), registered schemes, registrable superannuation entities and retail corporate collective investment vehicles.
The Draft RG 000 includes guidance on –
- who must prepare a sustainability report,
- how the regime will interact with existing legal obligations,
- how ASIC will administer the sustainability reporting requirements,
- specific guidance on ASIC’s approach to granting relief from the regime and use of its new directions power,
- how ASIC will exercise specific powers under legislation (primarily the Corporations Act),
- how ASIC interprets the law,
- the principles underlying ASIC’s approach, and
- practical guidance to entities about complying with their sustainability reporting obligations.
Draft RG 000 also addresses specific issues in relation to the contents of the sustainability report and sustainability-related financial disclosures outside the sustainability report.
ASIC Commissioner Kate O’Rourke said: ‘Our focus for this regulatory guide is to assist preparers of sustainability reports to comply with their obligations so that users are provided with high-quality, decision-useful, climate-related financial disclosures that comply with the law and the sustainability standards.’
ASIC has also released for comment the Consultation Paper 380 Sustainability reporting (CP 380) that seeks stakeholder feedback on –
- ASIC’s proposals to issue a regulatory guide for entities required to prepare a sustainability report under Chapter 2M of the Corporations Act;
- ASIC’s proposals to facilitate sustainability reporting relief for stapled entities; and
- broader questions, issues or uncertainties that may inform ASIC’s approach to any future guidance.
ASIC is encouraging Industry to engage with the draft guidance and to provide feedback on what ASIC is proposing. Feedback is expected to assist ASIC to ensure that they can effectively support the implementation of the sustainability reporting regime, advised Ms O’Rourke.
Ms O’Rourke added ‘During this transition period, we will take a proportionate and pragmatic approach to supervision and enforcement.’
ASIC is encouraging all reporting entities to prepare for the new climate disclosure regime.
Please provide feedback on Consultation Paper 380: Sustainability Reporting (CP 380) by 19 December 2024.
Further details:
The Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Act 2024 (Cth) requires mandatory climate reporting for large businesses and financial institutions in Australia through amendments to the Corporations Act 2001 (Cth) and the Australian Securities and Investments Commission Act 2001 (Cth).
The mandatory climate reporting requirements will be phased in over the next 3 years across 3 groups of reporting entities, with the first reporting cohort required to prepare annual sustainability reports for financial years commencing on or after 1 January 2025.
The second and third reporting cohorts are required to prepare annual sustainability reports for the financial years commencing on or after 1 July 2026 and 1 July 2027 respectively.
AEBN Comment
Join us on 7 March 2025 at the annual 2025 AEBN National Conference on Environment, Climate Change and Energy WEBINAR, as you will hear the Regulator including the experts present the details including the implications to businesses from across Australia.
