The Australian Securities and Investments Commission (ASIC) has issued an update on its guidance on climate change related disclosure.
The regulator’s review, which followed the recommendations of a Senate Economics References Committee report on carbon risk, found that its existing regulatory guidance remained fit for purpose.
However, to help stakeholders comply with their disclosure obligations, ASIC issued the following update to its guidance, according to which, the parties should:
ASIC commissioner, John Price, said that climate change was an area which ASIC continued to focus and it would welcome the continuing emergence of the Climate Related Financial Disclosures (TCFD) framework as the preferred market standard, both here in Australia and internationally, for voluntary climate change related disclosures.
“While disclosure is critical, it is but one aspect of prudent corporate governance practices in connection with the mitigation of legal risks,” he said.
“Directors should be able to demonstrate that they have met their legal obligations in considering, managing and disclosing all material risks that may affect their companies. This includes any risks arising from climate change, be they physical or transitional risks.”
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