ASIC Commissioner Kate O’Rourke Addresses Climate Risk at RIAA Conference

Key Takeaways

• ASIC’s Support for Businesses: ASIC is actively providing practical guidance and educational resources to help businesses meet mandatory climate-related financial disclosures.
• Flexible Reporting Guidelines: Regulatory Guide 280 (RG 280) offers flexibility, allowing companies to include additional sustainability information in their reports alongside the required climate disclosures.
• Helping Smaller Companies: ASIC is developing educational materials to assist smaller businesses, especially those in supply chains, to understand emissions accounting and conducting scenario analysis.
• Pragmatic Enforcement Approach: ASIC’s enforcement stance will focus on supporting businesses through the transition, with a clear focus on addressing greenwashing.

Deep Dive

ASIC Commissioner, Kate O'Rourke, recently took center stage at the Responsible Investment Association Australasia (RIAA) Conference, where she shared her insights on how ASIC is helping Australia’s financial sector navigate the growing importance of climate-related financial disclosures. While O'Rourke emphasized that these regulatory changes are big, she also clarified they are an opportunity for businesses to take charge of climate risk and show the market they’re ready for the future.

O'Rourke kicked off her speech by acknowledging just how far the financial landscape has come in the past year. “These changes represent the biggest shift to financial reporting in a generation,” she said, and it’s hard to argue with that. With mandatory climate-related disclosures officially in effect for large companies starting in January 2025, Australia is leading the way in making financial transparency around climate risks the new norm.

But as O'Rourke pointed out, change can be daunting. That’s where ASIC’s role comes in, not just as a regulator but as a guide for businesses through the storm.

Helping Businesses Succeed with Climate Reporting

“We’re committed to making sure businesses succeed, not just comply,” O'Rourke said. Her focus was on the ASIC actively supporting businesses in adjusting to this new framework, ensuring that climate-related disclosures are not just ticked off the list but are high-quality, useful, and meaningful for investors and consumers alike.

To help with that transition, ASIC released its Regulatory Guide 280 (RG 280) in March 2025, packed with practical tips on how to properly report climate risks. The guide wasn’t just pulled together in a vacuum, it’s the result of over 60 submissions from law firms, industry groups, and companies, who all chimed in to help shape it. And that feedback? It’s evident in the final version, which now includes more specific advice on tricky areas like Scope 3 emissions (that’s emissions from a company’s supply chain) and climate scenario analysis.

But there’s a more flexible side to this, too. Initially, ASIC wanted sustainability reports to be pretty strict, focused mainly on climate-related risks and financial disclosures. However, after hearing from businesses, they’ve softened the stance to allow companies to include additional sustainability information in their reports, as long as it doesn’t overshadow the mandatory climate disclosures. It’s a practical shift that helps businesses avoid having to churn out multiple reports for different audiences.

Supporting Smaller Businesses Along the Way

While big businesses are gearing up to meet the new standards, ASIC is also mindful of the challenges smaller businesses face. Many of them, particularly in the supply chains of larger companies, may not be aware of the requirements or might feel ill-prepared. To help level the playing field, ASIC is putting together a series of educational materials aimed specifically at these smaller entities. These resources will help businesses get their heads around the basics, from climate change fundamentals to understanding emissions accounting and running scenario analyses.

“Think of it as a crash course in climate reporting for those who are just getting started,” O’Rourke explained. And for those SMEs who aren’t sure where to start, these resources will be a lifeline, helping them navigate the new terrain without feeling overwhelmed.

Of course, with any new regulation, there’s the question of enforcement. O'Rourke acknowledged that while ASIC is prepared to step in where needed, it’s not about catching businesses off guard. “We understand that these requirements are new, and it will take time for everyone to get it right,” she said. For now, ASIC’s focus will be on guiding businesses through their compliance journey and stepping in when necessary, especially if companies aren’t meeting the basic requirements or engaging in reckless behavior.

One area where enforcement is already in full swing is greenwashing. O'Rourke made it abudantly clear that ASIC won’t hesitate to crack down on misleading claims or companies trying to deceive investors with ‘green’ promises they can’t back up.

As the session wrapped up, O'Rourke brought it back to the core of why this work matters, “The goal is to build a financial system that’s not just prepared for climate risk, but one that also helps investors make informed decisions and encourages businesses to be transparent,” she said. The regulatory changes may be tough, but they’re an opportunity to ensure that companies are thinking ahead, preparing for the future, and supporting the shift toward a more resilient financial system.

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