ASIC issues its sustainability reporting guide (RG 280) as climate reporting begins
ASIC published Regulatory Guide 280 on 31 March 2025, explaining who must prepare a sustainability report under the Corporations Act, what it must contain and how ASIC will administer the regime. ASIC said it would be pragmatic and proportionate in the early years, focusing enforcement on serious or reckless misconduct and on failures to prepare a report.
The Australian Securities and Investments Commission (ASIC) issued Regulatory Guide 280 (RG 280), Sustainability reporting, on 31 March 2025, after consulting on a draft (CP 380) from November 2024 and receiving 60 submissions.
What RG 280 covers
- Which entities must prepare a sustainability report under Chapter 2M of the Corporations Act: companies, registered schemes, registrable superannuation entities and retail corporate collective investment vehicles.
- What the report must contain, including guidance on climate scenario analysis and scope 3 emissions, and on directors' role.
- How sustainability information outside the report, such as in prospectuses and PDSs, should be handled.
- ASIC's approach to relief, and its new power to direct an entity to fix its report. Stapled groups can prepare one consolidated report.
ASIC's approach in the early years
ASIC said it would be pragmatic and proportionate. Where a statement looks wrong or misleading, it will engage with the entity first. Investigations are more likely for serious or reckless misconduct, or where a required report is not prepared.
Phasing
Group 1 reports for financial years starting on or after 1 January 2025, Group 2 from 1 July 2026 and Group 3 from 1 July 2027.