ASIC Encourages Submissions to the International Sustainability Standards Board’s Global Benchmark Climate Consultation

ASIC welcomes the significant progress made by the International Sustainability Standards Board (ISSB) towards establishing global sustainability reporting standards. The ISSB has released two draft standards (exposure drafts) for consultation and ASIC encourages all relevant stakeholders to submit a submission. Submissions are due before July 29, 2022.

ASIC Vice President Karen Chester said, “The release of the Exposure Drafts is a major step towards setting global standards for sustainability and climate-related disclosure. The ISSB has worked at a steady pace to meet the urgent demand for transparent and comparable reporting on sustainability and climate-related issues. Consistent, comparable and relevant information is essential for investors to make informed decisions.

“It is important that Australian businesses and wider stakeholders ̶̶ investors, other journalists, advisers and insurers ̶̶ take part in the ISSB’s consultation to establish these standards as a ‘global benchmark’. The ISSB offers alternative consultation options, you can complete a survey or submit a comment letter.Australian stakeholder feedback is essential to ensure that the ISSB’s final standards are appropriate and achievable for our market and economy.

“If the exposure drafts were to be adopted internationally, they will inevitably have an impact on Australian capital markets and participants, as investors continue to demand comparable sustainability and climate disclosures,” Ms Chester said. .

ASIC encourages Australian stakeholders to submit a response to the ISSB Exposure Drafts:

Stakeholders can submit responses to the Exposure Drafts by participating in a survey or submitting a comment letter by July 29, 2022.

Stakeholders can also submit comments to the Australian Accounting Standards Board (AASB) by July 15, 2022. The AASB is consulting on the ISSB exposure drafts, to provide feedback to the ISSB and to gather information on how the proposals might work in the Australian environment.

The role of ASIC

ASIC participates in ISSB Exposure Drafts as a member of the Council of Financial Regulators Climate Working Group, participating in AASB-organized stakeholder roundtables, and engaging with stakeholders of the sector. As announced on June 23, 2022, the CFR agencies will provide a joint submission to the ISSB on exposure drafts.

Internationally, ASIC is a member of the Sustainable Finance Working Group of the International Organization of Securities Commissions, which provides input to the ISSB and will consider possible IOSCO endorsement of the standards of the Securities Commissions. ‘ISSB.

Report 593 on Disclosure of Climate Risks by Listed Companies in Australia sets out ASIC’s recommendations for addressing and disclosing climate risks.

ASIC encourages directors and senior executives of listed companies and their advisers to continue to report voluntarily under the Task Force on Climate-Related Financial Disclosures (TCFD) as the ISSB climate standard evolves. developed.

  • Consider climate risk – directors and management of listed companies must understand and continually reassess existing and emerging risks, including climate risk
  • Develop and maintain strong and effective corporate governance – strong corporate governance makes it easier to identify and manage material risks
  • Comply with the law – directors should consider disclosing material business risks affecting future prospects in an operational and financial review, and
  • Disclose useful information to investors – directors of listed companies with significant exposure to climate risk should consider voluntarily disclosing under the TCFD.

Directors of listed companies must also ensure that the Operational and Financial Review provides the information that investors might reasonably require on operations, financial situation, business strategies and prospects for future years. Also see:

  • Guide to Enforcement 247 Effective Communication in an Operational and Financial Review
  • ASIC Press Release 22-124MR ASIC highlights priority areas for June 30, 2022 report.


The creation of the ISSB was announced at COP 26 in November 2021, with the aim of developing high-quality global benchmark information on climate and sustainability to meet the information needs of investors.

On March 31, 2022, the ISSB published the Exposure Drafts.

In December 2021, ASIC welcomed the creation of the ISSB (see ASIC press release 21-349MR). ASIC sees the creation of the ISSB as a major step in setting global standards for sustainability and addressing climate risk. ASIC supports the objectives of the ISSB in developing a global benchmark to meet the information needs of investors.

For more information on the ISSB, see the IFRS Foundation website.

/Public release. This material from the original organization/authors may be ad hoc in nature, edited for clarity, style and length. The views and opinions expressed are those of the author or authors. See in full here.

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