Brought to you by:
Ebix
Ebix

ASIC updates climate change guidance

Facebook Twitter LinkedIn Google

The Australian Securities and Investments Commission (ASIC) has updated its guidance for climate change-related disclosure.

It says regulated companies should include climate change risks developed by the G20 Financial Stability Board’s Taskforce on Climate-Related Financial Disclosures (TCFD), and also emphasise climate change as a systemic risk to future financial performance.

Disclosures both inside and outside of an operating and financial review should be synchronised, it says. ASIC is urging companies with material exposure to climate change to adopt the TCFD framework, which is voluntary. It is planning to monitor climate change related disclosure practices in the coming year.

The guidance review follows ASIC’s publication last year of a climate risk disclosure report in which it urges companies to be proactive in its response to emerging climate change risks, and develop strong corporate governance to assess it.

“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,” ASIC Commissioner John Price said. “This includes any risks arising from climate change, be they physical or transitional risks.”