On 7 May 2024, CA ANZ provided feedback to the ASX Corporate Governance Council (the Council) on its consultation draft of its principles and recommendations 5th edition.

CA ANZ is a founding member of the Council and voluntarily adopts the ASX Corporate Governance Council Principles and Recommendations (ASX principles and recommendations) which are applied within our governance arrangements (where relevant and appropriate). Our feedback outlined in our submission was formed through member and stakeholder outreach and is independent from our role on the Council.

Our submission noted that with Australia’s mandatory climate-related financial disclosures regime is expected to commence from 1 January 2025 for Australia’s largest entities, many ASX listed entities will be required to focus on the substantive new disclosures. We recommended that the 5th edition take effect for financial years commencing on or after 1 January 2026.

We also outlined comments relating to enforcement of the principles and recommendations, expansion to provide further detail on the purpose of explanatory commentary which is not a mandatory requirement and direct responses to consultation questions raised.