The Australian Securities and Investments Commission (ASIC) has released Regulatory Guide 280 (RG 280), providing important guidance on Australia’s new sustainability reporting requirements. The guide supports the implementation of mandatory climate-related financial disclosures and outlines ASIC’s expectations for entities preparing sustainability reports under Chapter 2M of the Corporations Act 2001.
RG 280 is designed to improve the consistency, comparability and quality of climate-related financial information, helping investors and stakeholders make more informed decisions while providing businesses with greater clarity on reporting obligations.
As regulatory expectations increase, organisations should view sustainability reporting as more than a compliance exercise. High-quality disclosures supported by strong governance and reliable data are becoming increasingly important for investor confidence and risk management.
What is ASIC Regulatory Guide 280?
Regulatory Guide 280 provides practical guidance for entities required to prepare sustainability reports under Australia’s climate disclosure regime. The guide explains ASIC’s approach to oversight and outlines expectations around preparing, presenting and communicating sustainability-related financial information.
ASIC Commissioner Kate O’Rourke highlighted the importance of high-quality climate reporting, noting that consistent and comparable climate-related financial information supports confident and informed decision-making.
Key Areas Covered by RG 280
RG 280 focuses on four key areas:
1. Determining Reporting Obligations
The guide helps businesses understand whether they are required to prepare sustainability reports and explains how reporting thresholds apply under the Corporations Act.
2. Sustainability Report Content Requirements
ASIC outlines expectations regarding climate-related financial disclosures and the information required under Australia’s sustainability reporting framework.
3. External Sustainability Disclosures
The guide addresses sustainability-related information presented outside formal sustainability reports, including statements made in annual reports, investor communications and other public materials.
4. ASIC’s Administrative and Regulatory Approach
RG 280 explains ASIC’s approach to supervision, relief provisions and regulatory oversight as sustainability reporting requirements are implemented.
Changes Introduced Following Industry Consultation
ASIC incorporated feedback from consultation with industry stakeholders, resulting in several important additions and refinements.
Key updates include:
- Additional guidance on climate scenario analysis.
- Expanded discussion on Scope 3 greenhouse gas emissions disclosures.
- Clearer guidance for directors responsible for sustainability reporting.
- Refinements around reporting thresholds and compliance requirements.
- Updated recommendations on presenting sustainability-related information within financial reports.
- Stronger guidance on sustainability-related financial information disclosed outside mandatory reports.
What RG 280 Means for Australian Businesses
The release of RG 280 reinforces that sustainability reporting is becoming an increasingly important part of corporate reporting and governance.
For businesses, this means:
- Greater regulatory scrutiny of climate-related disclosures.
- Higher expectations around accuracy, consistency and governance.
- Increased focus on director oversight and accountability.
- Greater importance of aligning sustainability information across reports and communications.
- Growing expectations around evidence and data quality.
Organisations that invest early in governance frameworks, reporting processes and data systems will be better positioned to respond to future assurance requirements and stakeholder expectations.
Strengthening Sustainability Reporting Capabilities
As sustainability reporting requirements become more complex, many organisations are strengthening internal capabilities to manage climate-related financial disclosures.
Areas where external support can add value include:
- Strategic guidance to align sustainability reporting with business objectives and risk management.
- Technical expertise for climate scenario analysis, greenhouse gas emissions accounting and disclosure requirements.
- System and data management support to improve sustainability data collection and reporting processes.
- Sustainability reporting support to help deliver transparent and defensible disclosures.
Why High-Quality Sustainability Reporting Matters
ASIC’s release of RG 280 reflects the broader shift towards greater transparency, accountability and consistency in climate-related financial disclosures.
As reporting requirements evolve, organisations that build strong governance, improve data quality and embed sustainability reporting into decision-making will be better positioned to manage risk and maintain stakeholder confidence.
Businesses that treat sustainability reporting as a strategic capability rather than a compliance obligation will be more resilient in a rapidly changing regulatory environment.
