Reporting Update 24RU-15
ASIC as sustainability reporting regulator
The mandatory sustainability reporting regime is new to the Australian reporting context. ASIC is the regulator responsible for this new mandatory sustainability reporting regime and has released Consultation Paper 380 Sustainability reporting seeking feedback on:
- Draft Regulatory Guide 000 for Sustainability Reporting (Draft RG 000)
- whether any existing ASIC financial reporting-related relief instruments should be extended to sustainability reporting
- any other areas of uncertainty on sustainability reporting where ASIC should provide support.
Through the Regulatory Guide, ASIC seeks to provide guidance to reporting entities about complying with their sustainability reporting obligations by:
- explaining when and how ASIC will exercise specific powers under legislation (primarily the Corporations Act)
- explaining how ASIC interprets the law
- describing the principles underlying ASIC’s approach
- giving practical guidance.
Draft Regulatory Guide
The content of Draft RG 000 is largely consistent with previously communicated requirements of the new sustainability regime and covers the following topics:
- The preparation of the sustainability report.
- Specific issues about the contents of the sustainability report.
- Sustainability-related financial disclosures outside the sustainability report.
- ASIC’s administration of the sustainability reporting requirements, including relief powers and surveillance program.
ASIC expects to release the final Regulatory Guide in Q1 2025.
Comments are due by 19 December 2024, including feedback on any other areas where guidance should be provided.
Further details are set out in this Reporting Update.
We welcome the release of the draft regulatory guide on sustainability reporting. As mandatory climate reporting draws closer, reporting entities would greatly benefit from the clarity the regulatory guide will provide on areas of uncertainty and address any potential diversity in application.
Download Reporting Update
Next steps
- Get familiar with the draft regulatory guide on sustainability reporting.
- Engage in discussions on the consultation paper.
- Provide feedback to ASIC.
- Reach out to your KPMG contact.
- Be alert for guidance and relief issued by ASIC.
