Corporate watchdog ASIC has released a draft regulatory guide on the upcoming sustainability reporting requirements, inviting feedback from stakeholders.
Starting in 2025, large Australian companies and financial institutions will need to produce annual sustainability reports that include climate-related financial disclosures.
The draft guide clarifies who must comply and how the new requirements fit with existing laws.
The draft guide, referred to as Draft RG 000, details how ASIC will manage the new reporting regime, including guidance on potential relief measures and ASIC’s new powers to direct compliance. It also covers the structure and content of the required sustainability reports.
“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,” said ASIC Commissioner Kate O’Rourke (pictured above).
ASIC is seeking input through its Consultation Paper 380 (CP 380) on the draft guide.
The feedback will shape the final guide, including considerations around extending relief measures to sustainability reporting and other areas for support during implementation.
“We want industry to engage with our draft guidance... Their feedback will help us to ensure that we can effectively support the implementation of the sustainability reporting regime,” O’Rourke said, noting ASIC’s commitment to a balanced approach as companies transition to the new requirements.
The mandatory reporting requirements, part of recent legislative amendments, will be implemented in stages.
The first group of entities must begin reporting from Jan. 1, followed by additional groups starting in mid-2026 and mid-2027.
ASIC encourages all relevant entities to begin preparations for compliance with the new regime. Stakeholders can submit feedback on CP 380 until Dec. 19. More information on sustainability reporting is available on the ASIC website.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
