Submission: Investors need guidance from ASIC on “reasonable grounds” in climate reporting
6 January 2025
Australia has introduced mandatory climate reporting for companies and investors. As announced at the IGCC Summit, the regulator (ASIC) recently released draft regulatory guidance for feedback.
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ASIC’s proposed guidance on mandatory climate reporting covers “forward-looking information” – in other words, information about future matters.
When it comes to climate reporting, there is a wide range of forward-looking information that must be published such as future climate risks and opportunities, targets, strategies and plans.
Forward-looking statements must be based on ‘reasonable grounds’.
IGCC made a submission calling for additional guidance specifically for institutional investors. This is needed because the day-to-day business of investors is very different to that of companies trading goods and services. Investors must deal with relatively high degrees of uncertainty as the climate risks and opportunities they manage come from the individual assets in their portfolio.
Examples of good practice forward-looking disclosures will help our members confidently publish information about potential climate risks and opportunities, targets and plans.
We welcome the opportunity for IGCC members to engage further with ASIC to come to a common understanding of what’s expected.
A well-planned, fair and fast transition to a net zero economy is in the interests of institutional investors as custodians of the retirement savings of everyday Australians. IGCC looks forward to supporting a meaningful climate disclosure regime that enables investors to work towards the best outcomes for their beneficiaries.
Read the full submission