ASIC Finds Improved Quality in Early Sustainability Reporting Under Australia's Statutory Regime

The Australian Securities and Investments Commission has found the quality, quantity and consistency of climate-related financial information has increased since the introduction of statutory sustainability reporting requirements, according to its review of a sample of 40 sustainability reports lodged for the period ending 31 December 2025, detailed in Report 839.

 

ASIC Commissioner Kate O'Rourke said the review identified marked progress compared to previous voluntary disclosures, noting statutory reporting "has not only resulted in heightened transparency, but also more meaningful engagement by entities with climate-related risks and opportunities," including examples of entities adapting or updating existing governance and risk management processes. ASIC identified opportunities for improvement specifically in forward-looking disclosures and those underpinned by assumption or judgement, including aspects of strategy and metrics and targets disclosures, and has outlined eight practical action items for reporting entities to consider, building on earlier observations published in May.

 

Read more: EU Countries Back Extra 121 Million Free CO2 Permits for Industry

 

ASIC is engaging with Australia's Treasury on reforms aimed at improving the efficiency of climate-related financial disclosures, with O'Rourke stating the regulator is "supportive of measures that reduce regulatory burden whilst preserving core sustainability reporting requirements." In the 2026-27 financial year, ASIC will review a sample of sustainability reports from Group 1 entities with financial years ending 30 June 2026, and will continue engaging with large audit firms on assurance methodologies for sustainability reports.

 

Australia's statutory sustainability reporting requirements, phased in over three years across three entity groups, commenced for the largest entities for financial years beginning on or after 1 January 2025. Since ASIC's May observations, an additional 53 sustainability reports have been lodged by entities with financial years ending 31 December 2025, bringing the total for this cohort to 312.

 

Source: The Australian Securities and Investments Commission (ASIC)