ASIC Sharpens Focus on Climate Reporting and Greenwashing

ASIC has released a series of updates reinforcing its commitment to guiding entities through the transition to Australia’s new climate reporting regime. These developments reflect a broader regulatory push for transparency, accountability, and integrity in sustainability disclosures.

• ASIC launches quarterly climate reporting newsletter to keep entities informed on regulatory developments under the Corporations Act and AASB S2.
• New relief register introduced to improve transparency around sustainability reporting exemptions, with quarterly updates.
• Voluntary disclosure review highlights gaps, including the need for clearer scenario analysis and stronger links between climate risks and strategy.
• Greenwashing remains a key enforcement focus, with ASIC intervening in misleading sustainability claims across multiple sectors.

 

Key Developments

Quarterly Climate Reporting Newsletter

ASIC will now issue a quarterly newsletter covering regulatory developments under the Corporations Act, AASB S2, and other climate-related frameworks, helping entities stay informed and aligned with evolving expectations.

Sustainability Reporting and Audit Relief Register

A new register has been launched to improve transparency around relief decisions. The first entry exempts three unlisted, wholly owned entities of a Registered Superannuation Entity from preparing standalone sustainability reports in their first year. These entities will be included in the RSE’s Group 2 consolidated reporting.

Insights from Voluntary Disclosures

ASIC’s review of early climate disclosures (largely TCFD-aligned) highlighted several areas for improvement:

• Greater clarity around scenario analysis assumptions.
• Stronger links between climate risks, strategy, and actions.
• Continued use of both primary and secondary data for Scope 3 emissions (as permitted under AASB S2).

ASIC reaffirmed its commitment to a pragmatic and proportionate enforcement approach during the early stages of implementation.

Ongoing Greenwashing Enforcement

ASIC remains focused on misleading sustainability claims. Over the past year:

• 15 companies and 4 superannuation trustees have modified or removed claims following ASIC intervention.
• Key concerns include unsupported strategies, vague commitments, and inadequate disclosure of climate-related risks - particularly in high-impact sectors such as mining, resources, and consumer goods.

 

What This Means for You

With the first reports due soon, now is the time to be making progress. ASIC’s latest updates signal a more structured and transparent regulatory environment and increased scrutiny of sustainability claims.

 

How We Can Help

We are supporting clients across sectors to prepare for the new regime. Our team can assist with:

• Interpreting AASB and ASIC’s guidance and expectations
• Benchmarking against global best practices
• Tailoring your reporting journey for your organisation
• Reviewing and strengthening your climate-related disclosures

To discuss how we can support your climate reporting strategy, please get in touch with your usual DLA Piper contact or reach out to our ESG team.