Relief from sustainability reporting requirements

ASIC relief

Sections 340 to 342 of the Corporations Act 2001 (Corporations Act) allow ASIC to relieve entities (or a class of entities) from complying with all or specified requirements of Parts 2M.2, 2M.3 and 2M.4 (other than Division 4) of the Corporations Act. This includes sustainability reporting requirements, such as the requirements to prepare a sustainability report and lodge reports within a certain timeframe.

An entity wishing to seek relief from one or more of the sustainability reporting requirements may apply to ASIC. However, we can only grant relief if we are satisfied that complying with the relevant obligations would:

• make the sustainability report misleading;
• be inappropriate in the circumstances; or
• impose unreasonable burdens.

A decision to grant relief by ASIC is discretionary and will consider all the relevant circumstances of an application. An application for relief must be made in writing and authorised by a resolution of the directors.

ASIC has the discretion to impose conditions on relief and relief may be granted for a limited time.

Applying for relief

If you are thinking of applying for relief, you should apply as early as possible. As the sustainability reporting requirements are new, your application may raise novel issues that could take some time to resolve. ASIC’s powers to grant relief are prospective, meaning that ASIC has no power to grant retrospective relief. Relief will not remedy any past breaches of the Corporations Act.

For guidance on how ASIC exercises its relief powers, see Regulatory Guide 51 Applications for relief (RG 51) and Regulatory Guide 43 Financial Reports and audit relief (RG 43).

How to apply

1. Apply through the ASIC Regulatory Portal

You should submit your application for relief through the ASIC Regulatory Portal.

To submit a sustainability reporting relief application in the Regulatory Portal:

• select the option ‘Other’ in relation to the relevant category of relief application; and
• use the free text fields to specify the type of relief you are seeking (e.g. ‘Sustainability reporting relief’) as well as the legislative provisions in Part 2M.2, 2M.3 or 2M.4 from which you are seeking relief.

You will need to pay fees for an application. We have provided details about payment options in the portal.

The Regulatory Portal features structured online transactions with mandatory fields and questions that make it easier for applicants to ensure the information ASIC requires is provided upfront.

2. Address the criteria in our policies on relief

You should consider our guidance in Regulatory Guide 51 Applications for relief (RG 51) and Regulatory Guide 43 Financial Reports and audit relief (RG 43).

Your application should specifically address why complying with the obligation from which you seek relief would:

• render the sustainability report misleading;
• be inappropriate in the circumstances; or
• impose unreasonable burdens.

If you have any questions about lodging sustainability-related relief applications, you may contact us by email at sustainable.finance@asic.gov.au.