The Australian Securities & Investments Commission (ASIC) has officially unveiled its “Regulatory Guide 280 (RG 280),” a comprehensive framework aimed at guiding companies through the newly mandated climate-related financial disclosures.
According to ESG Today, this regulatory milestone follows the legislative advancement of the Treasury Laws Amendment Act by Australian lawmakers in September 2024, setting the stage for compulsory climate reporting starting as early as 2025 for major enterprises.
ASIC’s initiative targets a broad spectrum of companies, from public corporations to large proprietary firms with stringent audit requirements, outlining precise thresholds for compliance. Specifically, the reporting obligations will first affect companies employing over 500 individuals, or those boasting revenues exceeding $500m, or assets above $1bn. Additionally, asset owners managing upwards of $5bn will also come under this ambit. For medium-sized entities—with employee numbers ranging from 250, revenues around $200m, or assets at $500m—their reporting journey commences in July 2026, followed by smaller firms a year later.
RG 280 aims to ensure that climate-related financial disclosures are robust, thereby enabling investors and stakeholders to make well-informed decisions. The guide emphasizes a “pragmatic and proportionate approach” to regulation, particularly in the initial phase, focusing on severe or negligent misconduct. ASIC Commissioner Kate O’Rourke highlighted the essence of providing “consistent, comparable, and high-quality climate-related financial information,” which is pivotal for knowledgeable decision-making by investors.
The guide elaborates on various crucial elements, including the specifics of who must prepare sustainability reports, the detailed content these reports should encompass, and how companies might handle sustainability-related financial information outside the formal reports. ASIC also plans to offer support and potentially grant relief from certain reporting and audit mandates under specific conditions to facilitate compliance.
Moreover, the regulator has indicated a dynamic approach to the evolving market practices and international policies concerning climate disclosures, promising continued updates and guidance to aid reporting entities in meeting the evolving standards.
As Australia steps into this new era of sustainability reporting, the guidance from ASIC is expected to play a crucial role in shaping the corporate response to climate change, enhancing transparency, and fostering a more sustainable future.
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