The Australian Securities and Investments Commission has issued new guidance on disclosure relating to climate change related risks. The proposed changes highlight that climate change risks identified by the Taskforce for Climate Related Financial Disclosure (TCFD) may require disclosure to potential and current investors, as well as providing clarification of the interplay between voluntary and mandatory disclosures.

For Australian corporations, these updates provide useful guidance and clarification of disclosure obligations. However, it is also likely to put greater pressure on companies to ensure that management of climate risks is both done, and seen to be done. With shareholder and activist litigation trends emerging in Australia and overseas, companies can expect disclosures to be carefully scrutinised by shareholders, competitors, and activists.