APRA declared in 2017 that managing climate change risk is a prudential obligation for financial institutions as the risks are material. ASIC commissioner John Price commented in 2018 that climate change is also a serious issue for ASIC, with companies required to disclose material climate change risks under relevant laws and regulations. However, ASIC's report in 2018 found that listed companies need to improve consistency in climate risk disclosure, with very limited disclosure outside the top 200 companies.

1. Regulatory focus
In early 2017, APRA declared that managing climate change risk was a
prudential obligation. The regulator views climate risks as “foreseeable
and material” to financial institutions, and expects businesses to
systematically monitor, disclose and discuss the risks.
In a speech delivered on 18 June 2018 to the Australian Institute of
Company Directors, ASIC commissioner John Price commented that
climate change was a serious issue for ASIC as well.

2. The Corporations Act 2001 section 299A(1)(c) requires disclosure of
material business risks affecting future prospects in a company’s operating
and financial review. Referencing Regulatory Guide 247 Effective disclosure
in an operating and financial review, and Regulatory Guide 228
Prospectuses: Effective disclosure for retail investors, Price said that where
the laws required, companies were obligated to disclose material climate
change risks.
However, on 20 September 2018, ASIC’s Report 593 Climate risk disclosure
by Australia’s listed companies found more needs to be done to improve
consistency in disclosure practices across listed companies, with very
limited climate risk disclosure outside of the top-200 companies.