Recent regulator and government activities reinforced the increasing focus and heightened expectations surrounding sustainability reporting, particularly climate, and that exposed entities act now rather than later in considering their reporting and communications.
ASIC’s expectations and monitoring activities
ASIC has reiterated its expectations regarding sustainability-related disclosures and its current focus in this area. Whilst no mandatory sustainability or climate reporting legislation currently exists, ASIC expects continued use of existing requirements and voluntary frameworks to prepare for the transition to international sustainability reporting standards, particularly for listed entities. ASIC’s recent monitoring of sustainability-related claims and statements by entities, and regulatory action, has highlighted the need to ensure clarity in communication of sustainability-related statements.
Treasury consultation to require climate-related financial disclosures
In December 2022, the Government acted to confirm the expectation that mandatory sustainability disclosures – at least for climate-related financial impacts – are on the horizon for Australian entities. Treasury issued its Climate-related financial disclosure consultation paper seeking views that will inform detailed proposals in 2023. Submissions on the Treasury consultation are due 17 February 2023.
Be prepared
While there is no mandatory legislation yet, prepare for fast adoption of climate and sustainability related disclosures. Get ready NOW!
In our publication we highlight:
- ASIC’s current focus and recent activities – and what and why entities need to consider sustainability-related disclosures this reporting period.
- ASIC’s guidance on clarity in communication.
- Treasury’s consultation and what’s on the horizon.
Download Reporting Update
Further details on each of the above can be found in the PDF version of the Reporting Update.
