ACSI and AICD Publish Climate Transition Guidance
The joint guide supports Australian boards in preparing climate transition plans aligned with long-term strategy.
Updated on Oct. 28, 2026 in Business Strategy
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Should companies be required to publish clear plans for their transition to a low-carbon economy?
The Australian Council of Superannuation Investors (ACSI) and the Australian Institute of Company Directors (AICD) published the Governing for Net Zero guide on 16 July 2025. This resource helps directors integrate climate-related transition planning into corporate strategy and budgets.
Why it matters
This guidance supports directors in addressing climate risks as part of the Australian Government's Sustainable Finance Roadmap. By aligning transition plans with business models, boards aim to support long-term value creation despite current gaps in regulatory mandates.
Sustainability reporting entities are required to disclose their transition plans under the Australian Government's Sustainable Finance Roadmap, though there is currently no legal requirement for entities to actually maintain one.
The players
Australian Council of Superannuation Investors
This is a peak body representing Australia's profit-to-member superannuation funds.
Australian Institute of Company Directors
This is a member-based organisation that provides professional development and advocacy for company directors.
The details
The new guide directs boards to embed transition planning directly into organisational strategy and budgets. It emphasises that transition plans must include specific targets, actions, and resources necessary to successfully shift toward a lower-carbon economy.
Timeline
16 July 2025: The ACSI and AICD published the transition plan guide.
End of 2025: The Treasury is expected to release official guidelines.
Market Landscape
This guidance aligns corporate governance with the Australian Government's Sustainable Finance Roadmap, marking a shift toward institutionalising climate planning. It positions Australian boards to proactively manage decarbonisation risks before official Treasury guidelines mandate specific frameworks.
For investors and customers, this guidance encourages greater transparency regarding how businesses intend to reach net-zero targets. While voluntary, these measures help ensure that corporate transition efforts remain aligned with long-term financial viability.
The takeaway
Effective climate transition planning requires boards to treat carbon-related risks as core financial and strategic concerns rather than peripheral issues. Directors should utilise current best-practice guidance to refine their organisational budgets well ahead of upcoming government requirements.
What happens next
The Australian Treasury is expected to release official guidelines for climate transition plans by the end of 2025.
Further reading
For broader context on corporate frameworks, visit the Business Strategy section.
Live Poll
Should companies be required to publish clear plans for their transition to a low-carbon economy?
