ASIC Calls for Feedback on Mandatory Climate Reporting Guide

With the phased rollout of mandatory climate reporting set to begin from 2025, ASIC is seeking feedback on a draft Regulatory Guide and encouraging entities to prepare for the change

With the phased rollout of mandatory climate reporting set to begin from 2025, ASIC is seeking feedback on a draft Regulatory Guide and encouraging entities to prepare for the change.  

Over the next three years, groups of entities will be required to prepare annual sustainability reports for financial years commencing on or after: 

• 1 January 2025 

• 1 July 2026 

• 1 July 2027 

While ASIC will take a pragmatic approach to supervision and enforcement during the reporting transition period, it is also emphasising the importance of entities preparing for the new climate disclosure regime and the regulatory guide will be a useful resource. 

The draft Regulatory Guide includes guidance on who must prepare a sustainability report, how the regime will interact with existing legal obligations, and how ASIC will administer the sustainability reporting requirements.  

This includes specific guidance on ASIC’s approach to granting relief from the regime and use of its new directions power. It also addresses specific issues in relation to the contents of the sustainability report and sustainability-related financial disclosures outside the sustainability report.  

ASIC Commissioner Kate O’Rourke said: “Our focus for this regulatory guide is to assist preparers of sustainability reports to comply with their obligations so that users are provided with high-quality, decision-useful, climate-related financial disclosures that comply with the law and the sustainability standards.” 

ASIC’s Consultation Paper 380 (CP 380) seeks stakeholder feedback on the draft guide, whether any ASIC legislative instruments that grant relief in relation to financial reporting or audit requirements should be extended to sustainability reporting, and any other areas where ASIC should support the introduction of the sustainability reporting regime.  

“We want industry to engage with our draft guidance and what we are proposing,” Ms O’Rourke added. “Their feedback will help us to ensure that we can effectively support the implementation of the sustainability reporting regime.”