ASIC emphasises transparency as the antidote to greenwashing
In a recent article Australian Securities and Investments Commission (ASIC) deputy chair Karen Chester outlines the importance of effective disclosure to increase investor confidence in sustainability data. While ASIC have taken a proactive approach with existing regulatory tools, Karen Chester writes that “ultimately, only meaningful, responsible and transparent disclosure will effectively combat greenwashing practices.”
As such, ASIC has expressed its strong support for the implementation of a mandatory climate change-related disclosure regime in Australia that we reported on last week. The initiative is based on the global baseline being developed by the International Sustainability Standards Board (ISSB). ASIC’s endorsement of this framework aligns with its commitment to sustainable finance and its active role within the Council of Financial Regulators Climate Working Group.
ASIC encourages stakeholders to actively participate in the Treasury’s ongoing consultation on the government’s proposed climate disclosure standards and sustainable finance strategy. The need for companies to embrace the future reporting requirements under the ISSB is pressing, making it imperative for them to incorporate appropriate processes, practices, and governance now. This commitment to embedding the right foundations will ensure smooth transition and compliance with the upcoming climate disclosure requirements and, indeed, global business best practice.
Read the article here.
