The Australian Securities and Investments Commission has published a review of 40 sustainability reports from entities with financial years ending Dec. 31, 2025, finding marked progress in the quality, quantity and consistency of climate-related financial information compared with previous voluntary disclosures. The first reports under Australia’s phased statutory regime also showed more substantive engagement with climate-related risks and opportunities, including changes to governance and risk management processes. ASIC identified scope to improve forward-looking disclosures and information based on assumptions or judgment, particularly in reporting on strategy, metrics and targets. It set out eight practical action items that build on its May observations to help entities improve future reports and reduce regulatory uncertainty. A total of 312 reports from the cohort have now been lodged. During the 2026-27 financial year, ASIC will review a sample of reports from Group 1 entities with financial years ending June 30, 2026, and engage large audit firms on their assurance methodologies. It is also working with Treasury on reforms intended to reduce regulatory burdens while retaining the core sustainability reporting requirements.
2026-09-21Australian Securities & Investments Commission
Australian Securities and Investments Commission finds stronger mandatory climate reporting, flags forward-looking disclosure gaps
The Australian Securities and Investments Commission found marked improvement in the first mandatory sustainability reports compared with earlier voluntary disclosures. Its review of 40 reports identified gaps in forward-looking information and disclosures relying on assumptions or judgment, particularly on strategy, metrics and targets. ASIC issued eight practical action items and plans further reviews and engagement with large audit firms in 2026-27.