The Australian Securities and Investments Commission (ASIC) has released a draft regulatory guide outlining the new sustainability reporting framework, inviting feedback from stakeholders.
Starting 1 January 2025, large Australian businesses and financial institutions will be required to produce annual sustainability reports with climate-related financial disclosures as part of statutory obligations. The draft guide, titled ‘Regulatory Guide 000 Sustainability Reporting (Draft RG 000)’, provides detailed information on the entities required to comply, the framework’s alignment with existing legal responsibilities, and how ASIC will oversee these new reporting standards. This includes specific guidance on ASIC’s approach to providing relief and utilising its new regulatory powers.
In ‘Draft RG 000’, ASIC addresses essential elements for inclusion in sustainability reports, along with guidance on sustainability-related financial disclosures made outside of these reports.
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ASIC has also released ‘Consultation Paper 380 Sustainability Reporting (CP 380)’, seeking industry feedback on the draft guidance, including whether existing relief provisions for financial reporting or audit requirements should extend to sustainability reporting and other areas where ASIC might support the rollout of the new regime.
“We want industry to engage with our draft guidance and what we are proposing. Their feedback will help us to ensure that we can effectively support the implementation of the sustainability reporting regime,” O’Rourke said, adding, “We recognise that there will be a period of transition whilst entities build their capability, as reflected in the phasing in of requirements and modified liability provisions. During this transition period, we will take a proportionate and pragmatic approach to supervision and enforcement.”
ASIC urges all reporting entities to begin preparations for the climate disclosure requirements, with feedback on CP 380 due by 19 December 2024.