The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) is keen to make small-business owners aware that the Australian Securities and Investments Commission (ASIC) have published guidance for small businesses regarding greenwashing and mandatory climate related disclosure laws.
The ASBFEO point out greenwashing is a form of misleading or deceptive conduct, involving claims made about a product that it is environmentally friendly, sustainable or ethical, when it is not.
While most Australian SMEs will not be expected to have any direct climate-related reporting requirements, the ASBFEO is warning that many small businesses form part of the supply chain of larger businesses, which means they may need to engage with climate reporting considerations over time.
Once the new laws come into effect, ASIC will work with small business representatives to develop practical guidance for small businesses about the new laws and what they mean for them.
ASIC have issued an information sheet to help businesses if they intend to make sustainability-related claims while promoting or offering financial products or services. The ACCC has also produced some guidance relating to the Australian Consumer Law, including this guide for businesses on making environmental claims.
