ESG Reporting Obligations on Mid-sized Australian Corporations: An Analysis of Compliance with ASX Corporate Governance Principles
Jiamin Yuan *
University of Technology Sydney, International and Business Law, Australia 645 Harris St, Ultimo NSW-2007, Australia.
*Author to whom correspondence should be addressed.
Abstract
The Environmental, Social and Governance (ESG) reporting obligations are fundamentally changing corporate governance in Australia, and in particular for the mid-sized Australian Securities Exchange (ASX) listed corporations. Australia’s ESG reporting is within a regulatory frame, which includes legislative, regulatory and voluntary disclosure frameworks. The aim of the study is to evaluate the impact of ESG Reporting Obligations on Mid-Sized Australian Corporations. The principles of ESG reporting that call for ethical business practices, transparency and risk management are the ones that listed entities should adhere to when reporting on ESG. Specific barriers persist including irregularities in disclosure practices together with ambiguous legal circumstances. The ESG regulatory framework of Australia should incorporate international best practices and legal precedents to prevent ESG momentum loss and foster mid-sized corporation success in the current legal and investor and societal environment. This methodology will sustain ESG progress as it enables medium corporations to maintain their competitiveness by meeting evolving market standards. Future investigations need to examine the extended financial results of ESG compliance for mid-sized companies specifically regarding their business profitability and investment appeal and regulatory outcomes.
Keywords: Environmental, social, governance, Corporations Act, legal ambiguities, climate disclosure, reputational risks