ASIC Unveils Groundbreaking Climate Reporting Standards for Australia’s Corporate Sector
The Australian Securities and Investments Commission (ASIC) has launched its new Regulatory Guide 280 (RG 280), which provides a detailed framework for companies navigating the upcoming climate-related financial disclosure requirements. This guide is a significant step forward in ensuring that Australian businesses comply with the new legislative mandates introduced by the Treasury Laws Amendment Act passed in September 2024. As a result, major enterprises will be required to start climate reporting by 2025.
Key Highlights of Regulatory Guide 280
ASIC’s RG 280 is designed to cover a wide range of companies, including public corporations and large proprietary firms that are subject to rigorous audit requirements. Here are some of the main compliance thresholds:
- Companies with more than 500 employees
- Firms with revenues exceeding $500 million
- Entities holding assets over $1 billion
- Asset owners managing assets above $5 billion
Additionally, medium-sized companies, defined as those with:
- 250 employees
- Revenues around $200 million
- Assets valued at $500 million
will have their reporting obligations begin in July 2026, while smaller firms will follow a year later.
Objectives of RG 280
The primary aim of RG 280 is to ensure that climate-related financial disclosures are thorough and reliable, allowing investors and stakeholders to make informed decisions. ASIC Commissioner Kate O’Rourke emphasized the importance of providing “consistent, comparable, and high-quality climate-related financial information” to aid in this process.
Content and Support Offered
The guide details several critical components, including:
- Who is required to prepare sustainability reports
- The specific content these reports should include
- Guidelines on managing sustainability-related financial information beyond formal reports
To assist companies in meeting these requirements, ASIC intends to offer support and may provide relief from certain reporting and audit obligations under specific conditions.
Adapting to Evolving Standards
ASIC has committed to a flexible approach in response to the changing landscape of market practices and global policies related to climate disclosures. The regulator will continue to update and guide reporting entities as standards evolve.
As Australia embraces this transformative phase in sustainability reporting, ASIC’s guidance is expected to significantly influence corporate responses to climate change, enhancing transparency and fostering a more sustainable future.
For further details on ASIC’s initiatives, visit their official page on ASIC’s website.
