The Australian Securities & Investments Commission (ASIC) has released Regulatory Guide 280 (RG 280), outlining its approach to overseeing compliance with Australia’s new mandatory climate-related financial disclosure requirements.
The guide offers clarity for companies preparing sustainability reports under the Treasury Laws Amendment Act, passed in September 2024. The legislation mandates that large and medium-sized companies disclose climate-related financial information, including greenhouse gas emissions and climate risk exposure, with reporting beginning as early as 2025 for the largest firms.
ASIC said it would adopt a “pragmatic and proportionate approach” in the early years of enforcement, focusing on serious or reckless misconduct. Where issues of incomplete or misleading information are identified, the regulator plans to engage directly with companies before escalating matters.
“This approach aims to support a smooth implementation while maintaining trust in the integrity of sustainability disclosures,” an ASIC spokesperson said.
As the designated administrator of the new law, ASIC will monitor compliance and ensure companies are accurately reporting climate-related risks and opportunities across their operations and value chains.
