The Australian Securities & Investments Commission (ASIC) has released the first issue of its Reporting and audit update, a quarterly newsletter covering regulatory developments in sustainability reporting, financial reporting and audit. The edition includes ASIC observations from a review of voluntary climate-related disclosures ahead of the first mandatory sustainability reports due to be lodged from March 2026, alongside updates on greenwashing interventions and forthcoming financial reporting and auditor surveillance publications. From its sample review of voluntary disclosures (generally prepared under Taskforce on Climate-Related Financial Disclosures recommendations rather than Australian Accounting Standards Board Standard S2), ASIC highlighted common approaches to Scope 3 emissions estimation and recurring quality issues including repetitive disclosures that obscure key information, scenario analysis disclosures lacking detail on assumptions and dependencies, and transition plan disclosures that are not clearly linked to targets, actions and strategies. ASIC also launched a Sustainability reporting and audit relief decisions register to publish decisions made under its Corporations Act exemption powers for sustainability reporting and auditing matters, to be updated quarterly and to include refusals; recent examples include one-year relief for three unlisted wholly-owned entities of a registrable superannuation entity from preparing stand-alone sustainability reports where consolidated reporting would follow. On supervision and enforcement, ASIC reported combined civil penalties of AUD 34.7 million across three greenwashing cases it initiated (Mercer Superannuation (Australia) Ltd, Vanguard Investments Australia and Active Super) and noted that 15 companies and four superannuation trustees removed, retracted or revised sustainability-related statements following interventions during 2024–25. ASIC and the Australian Accounting Standards Board are also developing e-learning materials with the University of Technology Sydney and Studio 3 Learning for Group 3 sustainability reporters (financial years commencing on or after 1 July 2027), with release targeted for 2025 and workshops and roadshows planned for 2026. Separate ASIC publications on 2024–25 financial reporting and auditor surveillance are scheduled across September and October 2025, covering auditor independence and conflicts of interest, registrable superannuation entity financial reporting and audit, and broader financial reporting and audit surveillance findings.
Australian Securities & Investments Commission 2025-08-08
Australian Securities & Investments Commission publishes first Reporting and audit update and launches sustainability reporting relief decisions register
The Australian Securities & Investments Commission (ASIC) released its first quarterly Reporting and Audit Update, focusing on sustainability and financial reporting. It reviewed voluntary climate-related disclosures, noting issues like repetitive disclosures and inadequate scenario analysis. ASIC launched a register for sustainability reporting and audit relief decisions and reported AUD 34.7 million in civil penalties from greenwashing cases. It is collaborating with the Australian Accounting Standards Board on e-learning materials for sustainability reporters, with releases planned for 2025. Upcoming publications will address auditor independence and financial reporting surveillance.