In a speech on mandatory climate reporting, the Australian Securities & Investments Commission shared early observations from the first sustainability reports filed under the new requirements. It said the first wave has established a baseline for more comparable and consistent climate-related financial disclosures, but should not become the benchmark as reporting quality and consistency develop over time. ASIC reviewed a sample of the first tranche of reports from listed entities with 31 December year ends. It highlighted six areas for attention: clearer disclosure of the judgements used in climate statements, clearer separation of mandatory and material climate-related financial information from voluntary content, compliance with the standards' specific cross-referencing rules, avoidance of disclaimers that conflict with the statutory framework, more consistent use of past events, current conditions and forecasts in risk disclosures, and more consistent assessment of whether climate-related targets are required under law or regulation. The commission said it is supporting implementation through Regulatory Guide 280, educational materials, workshops and webinars in June, while taking a pragmatic and proportionate approach to supervision and enforcement during the three-year period of modified liability provisions. It plans to review the unlisted half of the 31 December reporters and another sample of reports, with a fuller report expected later in the year, likely in October.
Australian Securities & Investments Commission2026-05-28
Australian Securities & Investments Commission flags six issues in first mandatory climate reports and plans fuller review
The Australian Securities & Investments Commission outlined early observations from the first mandatory climate-related financial disclosures, saying they provide a baseline for more comparable reporting but should not be treated as a long-term benchmark. ASIC identified six priority areas for improvement, including clearer disclosure of judgements, separation of mandatory and voluntary content, adherence to cross-referencing rules, removal of conflicting disclaimers, and more consistent risk and target disclosures. It is supporting implementation through guidance and education while applying a pragmatic supervisory approach during the three-year modified liability period.