Modified liability settings
Modified liability settings apply until the financial year ending 31 December 2028.
Under the modified liability settings, no legal action may be brought in relation to certain types of statements (‘protected statements’) made within a sustainability report or accompanying auditor’s report. The modified liability settings do not apply to action taken by ASIC. They also do not apply to any voluntary statements made outside of sustainability reports or auditors’ reports, such as statements made in advertising material.
Protected statements
A ‘protected statement’ is a statement in a sustainability report, or an auditor’s report of an audit or review of the sustainability report, that is made for the purpose of complying with the sustainability standards and is about:
- scope 3 greenhouse gas emissions (including financed emissions);
- scenario analysis; or
- a transition plan.
Forward-looking statements relating to climate
A statement relating to climate that is about the future in a sustainability report or accompanying auditor’s report, made for the purpose of complying with the sustainability standards (‘forward-looking statement') is also a ‘protected statement’.
Statements required by Commonwealth law
Where another Commonwealth law requires the protected statement to be made, the modified liability setting also applies, for example in relation to the entity’s continuous disclosure obligations. This includes where the required statement differs from a protected statement only in so far as it contains updates or corrections to the protected statement.
Modified liability period
Other than action by ASIC and criminal action, no legal action may be brought in relation to protected statements made in reports prepared for the time periods specified in the table below.
Period that modified liability settings apply
|
Type of protected statement |
Modified liability period |
|
Scope 3 greenhouse gas emissions, scenario analysis and transition plan |
Reports prepared for financial years commencing between 1 January 2025 and 31 December 2027 |
|
Forward looking statements relating to climate |
Reports prepared for the financial year commencing between 1 January 2025 and 31 December 2025 |