New ASIC Guide Sets the Stage for Climate Transparency Under Mandatory Disclosure Law
SYDNEY (India CSR): Australia has taken a historic step toward embedding climate accountability in corporate governance. The Australian Securities & Investments Commission (ASIC) has officially released Regulatory Guide 280 (RG 280), its foundational framework to support businesses in meeting the country’s newly mandated sustainability and climate disclosure requirements.
The guide is designed to help companies navigate Australia’s landmark mandatory sustainability reporting regime, which begins rolling out from July 2025. The new reporting obligations aim to align Australian businesses with global climate disclosure norms, empowering investors and stakeholders to make more informed decisions.
A New Chapter in Corporate Transparency
The release of RG 280 follows the passing of the Treasury Laws Amendment Act in September 2024. The law mandates that large and medium-sized companies must disclose climate-related financial risks and greenhouse gas emissions across their value chains.
This regulatory move places Australia among a growing list of nations taking decisive action on climate reporting, in alignment with standards such as the ISSB (International Sustainability Standards Board) and TCFD (Task Force on Climate-related Financial Disclosures).
Key Facts: ASIC Regulatory Guide 280 on Sustainability Reporting
| Topic | Details |
|---|---|
| Issuing Authority | Australian Securities & Investments Commission (ASIC) |
| Guide Released | Regulatory Guide 280 (RG 280) |
| Purpose | To support companies in meeting new mandatory sustainability reporting laws |
| Law Enacted | Treasury Laws Amendment Act (September 2024) |
| Effective Start (Phase 1) | July 2025 |
| Applicable Entities (Phase 1) | Companies with: – 500+ employees – $500M+ revenue – $1B+ assets |
| Asset Owners Threshold | $5 billion+ in assets |
| Medium Companies (Phase 2 Start) | July 2026 |
| Medium Companies Threshold | 250+ employees OR $200M+ revenue OR $500M+ assets |
| Small Companies (Phase 3 Start) | July 2027 |
| Small Companies Threshold | 100+ employees OR $50M+ revenue OR $25M+ assets |
| Main Reporting Requirements | Climate-related financial risks, opportunities, and GHG emissions |
| Scope 3 Emissions Guidance | Included in final guide after public feedback |
| Climate Scenario Analysis | Detailed guidance included |
| Enforcement Approach | Proportionate and pragmatic in early years |
Phased Implementation for Companies
The sustainability reporting obligations will be implemented in phases:
- Phase 1 (From July 2025): Companies with 500+ employees, $500M+ in annual revenue, or $1B+ in assets.
- Phase 2 (From July 2026): Companies with 250+ employees, $200M+ in revenue, or $500M+ in assets.
- Phase 3 (From July 2027): Companies with 100+ employees, $50M+ in revenue, or $25M+ in assets.
The requirements will also apply to asset owners with more than $5 billion in assets.
What RG 280 Covers
The new guide provides detailed instructions on:
- Which companies must report
- Reporting thresholds
- Mandatory report contents
- Sustainability-linked financial disclosures
- Enforcement and supervisory approaches
Notably, it emphasizes the need for high-quality, comparable, and credible climate data to improve market transparency.
ASIC’s Pragmatic Enforcement Approach
ASIC has confirmed it will adopt a “pragmatic and proportionate” approach during the initial years. The focus will be on education, engagement, and gradual enforcement.
The regulator will not penalize genuine efforts to comply but will intervene in cases of serious or reckless misconduct or complete non-compliance. Relief measures may be granted if certain criteria are met.
“ASIC will engage directly with entities where sustainability disclosures appear incorrect or incomplete, and support them in correcting issues,” the guide notes.
Enhancements Based on Public Feedback
The final guide incorporates feedback received during a public consultation on the draft version released in November 2024. Key additions include:
- Climate scenario analysis guidance
- Clarifications on Scope 3 emissions disclosures
- Expanded roles and responsibilities for directors
- Guidance on applying size thresholds for reporting
International Alignment and Future Outlook
ASIC acknowledges that sustainability reporting is a “new regulatory space” in Australia. The guide stresses that both market practices and regulatory expectations will continue to evolve domestically and globally.
“Climate-related financial information that is consistent, comparable and of high quality facilitates confident and informed decision making,” said ASIC Commissioner Kate O’Rourke.
O’Rourke emphasized the need for corporate boards to take sustainability reporting seriously and build strong internal governance and risk management frameworks.
Why This Matters for Businesses
For companies, this new regulatory environment means sustainability is no longer optional—it’s a fiduciary responsibility. Early adoption and preparedness will not only ensure compliance but also build investor trust and enhance long-term resilience.
ASIC’s guide signals a shift in how companies must integrate environmental considerations into their financial storytelling, paving the way for responsible capitalism.
You Learn: A Turning Point for Corporate Australia
Australia’s move to formalize climate-related disclosures places it firmly on the path toward climate accountability and sustainable finance. With ASIC’s RG 280 serving as the compass, companies have the opportunity to lead the transition with clarity, credibility, and conscience.
As global investors increasingly scrutinize environmental performance, Australian firms that align with these new standards will be better positioned to thrive in the climate-aware economy.
(India CSR)
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