Australia’s financial regulator, the Australian Securities and Investments Commission (ASIC), has released Regulatory Guide 280 (RG 280), outlining compliance expectations under the country’s mandatory climate reporting framework. The law, enacted in September 2024, requires public companies, large proprietary firms, and significant asset owners to disclose climate-related risks, opportunities, and greenhouse gas emissions.

Pragmatic Enforcement Strategy

ASIC will take a proportionate and practical approach to enforcement, initially focusing on engagement and corrective measures before initiating legal action. Key enforcement priorities include:

• Serious or reckless misconduct
  
  
• Failure to prepare required sustainability reports
  
  

Phased Implementation Timeline

Mandatory reporting will be rolled out gradually:

• July 2025 – Large companies (500+ employees, revenues above $500 million, or assets exceeding $1 billion) and asset owners managing over $5 billion
  
  
• July 2026 – Medium-sized companies
  
  
• July 2027 – Small companies
  
  

Key Updates from Stakeholder Consultation

ASIC’s final guidance incorporates stakeholder feedback, introducing:

• Expanded guidance on climate scenario analysis and Scope 3 emissions disclosure
  
  
• Specific instructions for directors on compliance responsibilities
  
  
• Clarifications on sustainability reporting thresholds
  
  

Additionally, ASIC may provide exemptions from reporting and audit requirements under certain conditions and offer targeted support to help entities comply with the new regulations.

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