The Australian Securities & Investments Commission (ASIC) has released revised guidance on climate change-related financial disclosures.
ASIC has released revised guidance on climate change-related financial disclosures made in both offer documents and Annual Report Operating & Financial Reviews:
Regulatory Guide 228 Prospectuses: Effective disclosure for retail investors; and
Regulatory Guide 247 Effective disclosure in an operating and financial review.
ASIC has updated its guidance to, amongst other things:
incorporate the types of climate change risk developed by the G20 Financial Stability Board’s Taskforce on Climate Related Financial Disclosures (TCFD) into the list of examples of common risks that may need to be disclosed in a prospectus appearing in Table 7 of RG 228; and
in RG 247.66, highlight climate change as a systemic risk that could impact an entity’s financial prospects for future years and that may need to be disclosed in an operating and financial review.