Australia’s financial regulator, the Australian Securities and Investments Commission (ASIC), has released Regulatory Guide 280 (RG 280) to support the rollout of the country’s mandatory climate disclosure requirements, set to begin in July 2025. The guide is a major step in implementing Australia’s carbon neutral strategy and enhancing corporate transparency on ESG risks and opportunities. 

Under the new law passed in September 2024, large public companies, proprietary firms, and significant asset owners must disclose greenhouse gas emissions, climate risks, and sustainability initiatives. The framework aligns with international standards and aims to improve the quality and consistency of climate-related financial information available to investors. 

ASIC Commissioner Kate O’Rourke noted that the disclosures will empower stakeholders to make “confident and informed decisions” in line with growing global expectations on sustainability. 

The regulator outlined a pragmatic enforcement approach, initially prioritizing serious or reckless misconduct and failure to submit required sustainability reports. ASIC will focus on education and support before pursuing enforcement actions, recognizing that sustainability reporting is a new area for many Australian entities. 

The mandatory reporting timeline is staggered: 

• From July 2025: Applies to companies with over 500 employees, $500 million in revenue, or $1 billion in assets, as well as asset owners managing over $5 billion. 

• From July 2026: Medium-sized companies. 

• From July 2027: Smaller entities. 

RG 280 incorporates feedback from industry consultations and includes detailed guidance on climate scenario analysis, Scope 3 emissions, and responsibilities for directors. ASIC may also grant relief from certain reporting or audit requirements in specific cases. 

This initiative positions Australia as a regional leader in ESG disclosure, supporting global carbon neutral goals and helping businesses align with investor expectations on climate resilience and sustainability. 

Sources: 

https://esgnews.com/australia-regulator-releases-final-climate-disclosure-guide-as-mandatory-reporting-begins-in-2025/ 

https://www.esgtoday.com/australia-regulator-releases-new-guide-for-companies-beginning-mandatory-sustainability-reporting/  

https://onestopesg.com/news/australia-s-asic-releases-final-climate-disclosure-guide-as-mandatory-reporting-begins-in-2025-1743446087608