November 2025 ESG Policy Update—Australia

AUSTRALIAN UPDATE

ASIC Issues Fines for Misleading Sustainability Claims 

On 6 November 2025, the Australian Securities and Investments Commission (ASIC) announced enforcement actions against two major superannuation funds, for alleged greenwashing in their investment portfolios. 

One superannuation trustee was fined AU$37,560 after ASIC alleged advertisements on search platforms between April 2021 and December 2024 overstated the trustee’s commitment to eliminating carbon emissions. ASIC alleged the trustee contravened section 12DB(1)(a) of the ASIC Act because the statements represented that the trustee had a commitment to remove "all" investment in carbon emissions, however the trustee had no basis to make the representation, as it did not have a commitment during the relevant period to remove all investments in carbon emissions by 2050, rather only a target of net zero scope 1 and 2 carbon emissions across its investment portfolio, by 2050. ASIC Deputy Chair Sarah Court noted that such representations may have denied consumers the opportunity to make informed decisions regarding their superannuation provider. 

The other superannuation trustee was penalised AU$18,780 in relation to alleged misleading statements published in its 2023 Annual Report. The report stated, among other things, that manufacturers of tobacco products were “excluded entirely” from its investment strategy. ASIC considered this to be a representation that the trustee excluded all investments in manufacturers of tobacco products from the fund's portfolio. However, contrary to this representation, during certain periods, the trustee held investments in tobacco manufacturers indirectly through its international fixed income portfolio.

These actions form part of ASIC's broader regulatory campaign targeting greenwashing and misleading sustainability claims across the superannuation and financial services sector. 

ASX Proposes Amendments to Listing Rules in Response to Mandatory Sustainability Reporting

On 31 October 2025, the Australian Securities Exchange (ASX) released Compliance Update no. 12/25, announcing the release of a consultation paper on proposed amendments to ASX Listing Rule 17.5 following recent changes to the Corporations Act 2001 (Cth). The Corporations Act now requires mandatory annual sustainability reporting for certain listed entities, potentially expanding the scope of Listing Rule 17.5 to include suspension of the listed entity's securities for late lodgement of sustainability reports.

The ASX seeks to maintain the current approach, whereby mandatory suspension under Listing Rule 17.5 will only apply if an entity fails to lodge its annual directors’ report, statutory financial report, or auditor’s report by the due date. Late submission of sustainability reports would not trigger automatic suspension, preserving market stability while ensuring compliance with new statutory requirements. As such, a listed entity's failure to lodge a sustainability report on time will not automatically suspend trading in that entity's securities, but it will still be a breach of the Corporations Act and ASX rules.

Entities required to prepare sustainability reports must lodge them by the statutory due date for annual reporting documents under the Corporations Act and ASX Listing Rules.

CSIRO Releases Australian Carbon Dioxide Removal Roadmap

On 6 November 2025, Australia’s Commonwealth Scientific and Industrial Research Organisation (CSIRO) unveiled a roadmap to achieving large-scale carbon dioxide removal (CDR) by 2050 (Roadmap). The Roadmap outlines strategies to remove up to 330 megatonnes (Mt) of CO² annually, exceeding the 133–200 Mt required to meet Australia’s Paris-aligned net zero targets. This initiative aims to address residual emissions from hard-to-abate sectors. 

The Roadmap highlights emerging and novel technologies such as direct air capture, biomass carbon removal and storage, ocean alkalinity enhancement, and 'enhanced rock weathering' i.e. using silicate rocks to accelerate chemical reactions to absorb CO². These methods leverage Australia’s unique geographic and resource advantages, including vast mineral deposits and renewable energy potential.

Economic and infrastructure challenges remain, with the Roadmap acknowledging the high costs for novel CDR technologies. However, international pilot projects are demonstrating feasibility and cost-reduction pathways. Strategic development of the CDR sector could open export opportunities through carbon credit generation, diversifying Australia’s economy and strengthening trade ties. 

The Roadmap underscores the need for coordinated investment, regulatory frameworks, and community engagement, particularly with indigenous organisations.

Australia and Canada Sign Joint Declaration of Intent on Critical Minerals Collaboration

On 1 November 2025, Canada and Australia signed a landmark Joint Declaration of Intent (JDI) to enhance collaboration in the critical minerals sector. The JDI outlines key objectives, including strengthening cooperation across the critical minerals value chain, facilitating public investments in mutually beneficial projects, and fostering commercial partnerships and research collaborations. It also aims to address policy challenges faced by producer nations and ensure that emerging standards-based markets account for the unique challenges of high-standard critical minerals producers like Canada and Australia. 

This partnership is expected to bolster supply chain resilience, promote sustainable practices, and support the development of advanced technologies for processing, refining, and recycling critical minerals. Both nations have committed to sharing best practices on environmental, social, and governance (ESG) standards, traceability, and permitting processes, further aligning their sustainability goals. 

The collaboration is intended to be a step towards securing and diversifying global critical minerals supply chains, which are essential for defence applications, clean energy technologies, and advanced manufacturing. Implementation of the JDI will commence with a ministerial meeting within six months, followed by annual reviews to monitor progress and establish concrete work plans.

Australian Human Rights Commission Recommends Civil Penalties for Breaches of the Positive Duty to Eliminate Sexual Harassment

The Australian Human Rights Commission (AHRC) released its Speaking from Experience Report (Report) in June 2025, which made 11 recommendations to address workplace sexual harassment. The target areas of the recommendations are:

• Information;
• Safety within the workplace;
• Victim-survivors being heard;
• Access to support after being harassed; and
• Justice and accountability.

As part of the Report's justice and accountability recommendations, the AHRC recommended the introduction of civil penalties for employers or persons conducting a business or undertaking (PCBUs), as defined in the Sex Discrimination Act 1984 (Cth), for failing to meet their positive duty to prevent sexual harassment in the workplace. 

This positive duty was introduced in December 2022, requiring PCBUs and employers to take reasonable and proportionate steps to eliminate discrimination on the grounds of sex in a work context, sexual harassment in connection with work, sex-based harassment in connection with work, conduct that creates a workplace environment that is hostile on the ground of sex, and related acts of victimisation.

Anti-Slavery Commissioner Releases 2025-2028 Strategic Plan

On 22 October 2025, the Anti-Slavery Commissioner released its Strategic Plan for 2025-2028, setting the direction for Australia's response to modern slavery. The plan is built around four interconnected priorities, each with clear objectives and initiatives. Those key priorities are:

• Focus on survivors and people with lived experiences: Ensuring that people with lived experience of modern slavery are at the heart of policy, service design, and leadership, with a focus on survivor-led approaches and accessible support.
• Strengthen law and policy: Advocating for more robust legal and policy frameworks, including reforms to the Modern Slavery Act 2018 (Cth) and improved coordination across government, to better prevent and address modern slavery.
• Promote due diligence in business and government: Supporting and encouraging organisations to identify and address modern slavery risks in their operations and supply chains, with an emphasis on effective due diligence and stronger procurement practices.
• Improve access to justice and remedies: Advancing proactive, evidence-based approaches to identify victims, strengthen criminal justice responses, and ensure survivors can access meaningful remedies and support.

VIEWS FROM ABROAD

New Zealand Government Announces Reforms to Its Climate Related Disclosure Regime

On 22 October 2025, the New Zealand Government announced reforms to its mandatory climate related disclosure (CRD) regime. The rationale for the reform, viewed as a "commonsense change" by Commerce and Consumer Affairs Minister Scott Simpson, includes to reduce the costs and burdens of compliance on listed issuers, to reinvigorate capital markets, and to remove CRD obligations as a deterrent to New Zealand's Exchange listings. 

Climate Reporting Entities (CREs) with 30 June 2025 balance dates are still required to lodge statements by 31 October 2025.

Key changes to the New Zealand climate reporting regime, include, amongst others:

• Higher reporting threshold: An increase to the mandatory climate reporting threshold for listed issuers, from NZ$60 million market capitalisation to NZ$1 billion. Entities below this threshold may consider continuing to report on a voluntary basis.
• Removal of managed investment schemes (MIS): MISs are no longer required to report, reflecting feedback consultation from fund managers and investors that disclosures were not useful or meaningful for investment decisions in products.
• Reduced liability of directors: Directors are no longer deemed personally liable for entity breaches or unsubstantiated representations in climate related statements.
• Flexibility in threshold: Monetary reporting thresholds for CRD regime may be raised by Order in Council. 

Legislation introduced by the Financial Markets Conduct Amendment Bill 2025 (NZ) is expected to come into effect in 2026.

New Zealand's Financial Markets Authority has advised it will grant an interim exemption and "no action" relief from reporting requirements to all CREs affected by the proposed changes, which are expected to amend current reporting obligations. The "no action" to breach approach will begin from 1 November 2025 and applies to failed preparation, lodgement, or any other obligation under Part 7A of the Financial Markets Conduct Act 2013 (NZ).

It will be interesting to see if such reforms are adopted by comparable jurisdictions.

US Supreme Court Has Been Requested to Halt California's Climate Reporting Laws

On 14 November 2025, several business groups, led by the US Chamber of Commerce and other major corporations, petitioned the US Supreme Court to halt the implementation of California’s new corporate climate disclosure laws while ongoing litigation is resolved. These laws represent one of the most ambitious state-level transparency regimes in the US, requiring thousands of companies to publicly report greenhouse gas emissions and disclose climate-related financial risks from early 2026.

The laws mandate annual emissions reporting for companies with over US$1 billion in revenue, covering both direct and indirect emissions across the value chain and require biennial disclosures of material financial risks from climate change for companies earning more than US$500 million. The US Chamber of Commerce estimates that these requirements could affect an estimated 5,000 companies operating in the state. Both measures include civil penalties for non-compliance.

Petitioners contend that the laws compel speech in breach of the First Amendment and risk distorting public discourse, warning of irreparable harm if the requirements take effect before legal challenges are resolved. The State of California government argues that the mandates fall within its authority to regulate commercial disclosures, with state counsel highlighting the policy objectives of transparency and climate action.

The outcome of this Supreme Court petition may have ongoing implications for the standards for climate-risk reporting elsewhere within the United States.

The authors would like to thank graduate Eboni Sydes and seasonal clerk Sophie Mossenson for their contributions to this alert.