ASIC has today published a regulatory guide on sustainability reporting following an extensive public consultation with stakeholders.
Regulatory Guide 280 Sustainability reporting (RG 280) provides guidance for entities that are required to prepare a sustainability report containing climate-related financial information under Chapter 2M of the Corporations Act 2001. This may include companies, registered schemes, registrable superannuation entities, and retail corporate collective investment vehicles.
RG 280 includes guidance on determining who must prepare a sustainability report under the Corporations Act, the content required in the sustainability report, disclosing sustainability-related financial information outside the sustainability report (such as in disclosure documents and product disclosure statements), and ASIC’s administration of the sustainability reporting requirements (including our specific approach to considering relief and use of our new directions power).
ASIC released a draft regulatory guide for consultation, together with Consultation Paper 380 Sustainability reporting (CP 380) on 7 November 2024. We received 60 submissions from key stakeholders, including entities, industry associations, law firms, advisory and audit service providers, academics, and consultants. We are grateful to all respondents for their feedback.
There was broad support for ASIC to provide guidance on the new sustainability reporting requirements in a regulatory guide. RG 280 has incorporated feedback from this public consultation.
In response to the feedback received, we have:
- added sections to RG 280 on climate scenario analysis and disclosing scope 3 greenhouse gas emissions
- included more specific guidance for directors of reporting entities
- included additional guidance on applying the sustainability reporting thresholds
- revised our position on labelling of sustainability-related information in sustainability reports, and
- updated guidance on disclosing sustainability-related financial information outside of the sustainability report.
ASIC has provided further information about our pragmatic and proportionate approach to supervision and enforcement of the sustainability reporting requirements as they are being phased in. As part of this, we will:
- consider how we can support reporting entities through guidance and continue to monitor practices
- engage with reporting entities to understand the basis of disclosures in sustainability reports, where we identify that a statement in a sustainability report is incorrect or misleading in any way. If concerns remain, we may provide reporting entities with an opportunity to make changes or exercise our new directions power, and
- more likely commence an enforcement investigation where we see misconduct of a serious or reckless nature, or where a reporting entity fails to prepare a sustainability report required under the Corporations Act.
ASIC Commissioner Kate O’Rourke said:
‘Climate-related financial information that is consistent, comparable and of high quality, facilitates confident and informed decision making by investors and other users of that information.’
‘The publication of RG 280 is a critical piece that supports the implementation of these sustainability reporting requirements passed by the Australian Parliament. We will continue to expand our broader suite of publications related to sustainability reporting over time as market practices evolve.
ASIC has also provided relief to allow stapled entities to prepare a consolidated sustainability report for the stapled group. ASIC will consider any applications seeking other relief from the sustainability reporting and audit requirements. These may take some time to consider in the early days as they may raise complex or novel issues.
ASIC has provided additional information for entities within the value chain of reporting entities, including small businesses and farmers, about sustainability reporting and what it means to them.
REP 809 Response to submissions on CP 380 Sustainability reporting (REP 809) provides further detail about ASIC’s responses to the submissions received during the consultation process, including how the feedback was addressed in RG 280.
Industry stakeholders can refer to RG 280 and the sustainability reporting page on the ASIC website for more information.
Background
Entities that are required to prepare an annual financial report under Chapter 2M of the Corporations Act and meet one of the sustainability reporting thresholds under s292A for a financial year are required to prepare a sustainability report containing climate-related financial information required under the Corporations Act and AASB S2.
The sustainability reporting requirements are being phased in over three years across three groups of reporting entities, with the first reporting cohort required to prepare 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.
Downloads
Regulatory Guide 280 Sustainability reporting
Report 809 Response to submissions on CP 380 Sustainability reporting
Consultation Paper 380 Sustainability reporting (Non-confidential submissions in response to CP 380)
