Speaking at an industry event on Tuesday, he highlighted the regulator’s focus on mandatory climate reporting, which is due to become law after royal assent.

The Treasury (Financial Market Infrastructure and Other Measures) Amendment Bill 2024, which sets out the framework for Australia’s first climate-related financial disclosure regime, passed by Parliament on 9 September.

From January 1, 2025 this legislation will impose mandatory climate reporting requirements on Australia’s largest listed and unlisted companies and financial institutions, with other large businesses being introduced over time. It is expected to apply to over 6,000 entities once fully implemented.

"Compliance teams will clearly play a critical role in ensuring that their organizations are able and ready to meet these new reporting obligations," Longo said.

The chief executive previously described the introduction of a mandatory climate risk disclosure regime as "Australia's biggest change in financial reporting and disclosure standards in a generation".

Outlining how the regulator plans to tackle compliance with the regime, he explained that the Australian Securities and Investments Commission (ASIC) intends to be "proportionate and pragmatic" in its approach, allowing the industry to adapt to the new requirements.

"We know that these reporting standards are new and that some disclosures are new -- perhaps more forward-looking than those required to be disclosed under other periodic financial reporting obligations," Longo said.

“We also know there will be a transition period as the industry continues to build capacity and implement the organizational changes that will be needed to comply with the regime. We understand that.”

He encouraged firms to start preparing early and consider how such disclosures can be integrated into existing risk and compliance measures.

In contrast, ASIC's stance on greenwashing remains tough.

The regulator made nearly 50 regulatory interventions targeting greenwashing in the 15 months leading up to June 30, 2024, including civil penalty proceedings against Active Super and Vanguard Investments Australia and an $11.3 million fine against Mercer Super.

"Our green cleaning work involves focusing on the sustainability statements that entities voluntarily make about their green credentials," Longo said Tuesday.

"As I've said many times before, this work builds on the longstanding prohibition against misleading and deceptive conduct and goes back to making sure you do what you say you're going to do."

Citing Judge Horan's decision in the Mercer Super case, Longo said it was vital for consumers in the financial services industry to trust the ESG claims made by providers of financial products and services.