ASIC and ACSI keep up their oversight 

The Australian Securities and Investments Commission (ASIC) deputy chair Karen Chester has advised that greenwashing practices will only be challenged through “meaningful, responsible, and transparent disclosure”.

In an article in AICD’s Company Director magazine, and republished on ASIC’s website, Ms Chester called for companies “to embed the right processes, practices and governance ahead of the future reporting requirements under ISSB”.

The comments follow the June 2022 release ofASIC Information Sheet 271 How to avoid greenwashing when offering or promoting sustainability-related products, in which ASIC set out nine questions for funds to consider.

The regulator supports the government’s climate reporting requirements, and the broader sustainable finance strategy, through its role on the Council of Financial Regulators Climate Working Group.

Like ASIC, ASA believes that any mandatory climate change-related disclosure regime in Australia must be based on the global standards being developed by the International Sustainability Standards Board (ISSB).

Treasury has a current and planned consultation on both the government’s proposed climate disclosure standards and sustainable finance strategy to which ASA will be providing a submission.

The Australian Competition and Consumer Commission (ACCC) has released its draft guidance for business on Environmental and sustainability claims to avoid misleading consumers.

ACSI issues 22nd report on CEO remuneration 

The Australian Council of Superannuation Investors (ACSI) has released its 22nd report on CEO Pay in ASX200 Companies, conducted with research from Ownership Matters.

The report shows the average realised pay for ASX100 CEOs has fallen to the lowest level recorded in the past nine years.

However, ASX101-200 CEO pay has risen significantly over the past decade, at an average of 5% per annum, compared to 3.6% for the ASX100.

The ACSI report shows a much lower result than the Governance Institute of Australia’s Board & Executive Remuneration Report, which reported a 14% increase in remuneration (for listed and unlisted companies).

Given the markedly different outcomes, our monitors will be reviewing each company’s remuneration report to examine their circumstances and determine what level of remuneration is being offered.