In our joint submission to Treasury, we welcome the proposed changes by the Treasury Laws Amendment (measures for consultation) Bill 2022: sustainability standards (the Bill)) to the Australian Securities and Investments Commission Act 2001 (the ASIC Act).

We believe that the changes proposed by the Bill will provide clarity around the importance of sustainability standards and, moreover will position such standards to be of equivalent standing as accounting and auditing standards. 

We make the observation that the changes to the ASIC Act, as contemplated in the Bill, do not indicate any future intention to review the structure of the AASB. Although empowering the AASB to formulate sustainability standards, the proposed wording will lock in a structure that may require a future change to the ASIC Act to reflect and adequately resource a standalone Australian Sustainability Standards Board.