Directors' Responsibilities For Sustainability Reporting—ASIC's Views

Introduction

When directors and officers of reporting entities are assessing how to prepare for complying with the new sustainability reporting obligations, it is tempting to look to the Australian Securities and Investments Commission's (ASIC) approach to enforcement of "greenwashing" as a starting point. However, reporting entities should be aware of the differences in ASIC's enforcement approach between the two.

ASIC'S Enforcement Approach

Greenwashing misconduct refers to misleading and deceptive statements made by entities about their green credentials. ASIC interventions are founded on long-established laws that prohibit misleading and deceptive conduct.

Climate-related financial disclosures by reporting entities are to be made in the same context as their financial statements. As a result, directors will need to ensure that the sustainability report presents a true and fair view of the organisation's position and prospects and that the view is neither