ESG: Major change is underway, and we need to be ready

ASIC Chair Joe Longo views ESG as a transformative force in financial markets, urging companies to prepare for mandatory climate disclosures and embrace transparency.

Joe Longo, Chair of the Australian Securities and Investments Commission (ASIC), has consistently emphasized that Environmental, Social, and Governance (ESG) reporting is not a passing trend but a “megatrend” reshaping corporate accountability and investor expectations. Here are the key takeaways from his recent speeches and public statements:

ESG as a Seismic Shift

● Longo calls ESG “one of the most significant changes in financial reporting in a generation”, especially as Australia moves toward mandatory climate disclosures.
● He warns that more than 6,000 Australian companies will soon be required to include climate-related disclosures in their annual reports, aligning with global standards like those from the ISSB.

Transparency and Market Confidence

● ESG reporting is framed not as a bureaucratic burden but as a pathway to fair and efficient markets. Longo argues that “shareholder returns with ESG” is the new norm, not a trade-off.
● He sees ESG as essential for confident investment and better transparency, especially in a rapidly evolving regulatory landscape.

Expanding ESG Horizons

● Longo highlights emerging areas such as nature and biodiversity, referencing the Taskforce on Nature-Related Financial Disclosures (TNFD) as a parallel to climate-focused frameworks like TCFD.
● He acknowledges the Australian Government’s intent to mandate climate disclosures, reinforcing ASIC’s role in preparing the market for compliance.

Strategic Guidance for Businesses

● In his speech at the CEDA State of the Nation conference, Longo urged companies to “separate the signal from the noise” and proactively prepare for ESG obligations rather than waiting for final legislation.
● He encourages boards and executives to embed ESG into strategic planning, not just compliance checklists.

If you're shaping ESG platforms or advising on compliance architecture—as you are, David—Longo’s stance reinforces the urgency of scenario modeling, dual-framework alignment (ISSB + TNFD), and litigation-resilient disclosures. Want help drafting investor-grade messaging that reflects this regulatory momentum? I’m ready.