Yesterday, ASIC Chair Joe Longo delivered a speech at the AFR environmental, social and governance summit. We have set out the key points below.
Governance
Companies need to be constantly asking themselves the following three fundamental questions:
- How can sustainability and financial reporting work together to function as an integrated whole?
- How can we ensure that marketing and advertising teams work with the legal and risk teams to ensure cohesion around sustainability-related claims?
- What assurances and processes can be put in place to ensure that the board is appropriately informed and confident about the information that is being put out?
Greenwashing
ASIC has been vocal in its attempt to eliminate greenwashing from our markets. To ensure fair and efficient markets for confident and informed investors, ASIC is attempting to walk the line between encouragement and enforcement.
In response to ASIC’s scrutiny of greenwashing, companies are now “greenhushing” – attempting to cease all disclosure regarding their green credentials.
ASIC’s work on greenwashing aligns with the federal Government’s broader agenda which includes mandatory climate disclosure. The prohibition against misleading and deceptive conduct is a longstanding obligation of companies and ASIC will continue to focus on greenwashing.
If you require any advice in relation to governance or your disclosure obligations, please contact Glenn Vassallo (Managing Director) or Scott Standen (Director).