AICD submission to Treasury on amendments to the modified liability provisions under Australia's climate reporting regime

The AICD strongly supported amendments to clarify that the modified liability provisions under the climate reporting regime are intended to apply to all Sustainability Reports, whether or not they are legally required to be prepared. That is, voluntary Sustainability Reports and any reports prepared under an exemption granted by ASIC. 

The AICD considered this is a critical clarification for entities who may may wish to begin reporting voluntarily under Australia's climate reporting regime in advance of their statutory obligation commencing (for example, Group 2 and Group 3 entities). Policy settings should remove potential legal barriers to entities which choose to be early adopters, noting the complexity of the new reporting regime.

The AICD also provided related comments on areas that would benefit from further clarification, including the application of the modified liability settings to statements made outside the Sustainability Report that are required to be made by Commonwealth law. That is, statements reproduced or summarised in corporate reports (e.g. Financial Report, Operating and Financial Review report, a Corporate Governance Statement, or Notice of Meeting).