--- title: "Sustainability reporting committee terms of reference (board oversight of the climate statements and directors' declaration)" url: "https://ailawframework.com/precedents/climate-esg-and-sustainability-reporting/sustainability-reporting-committee-terms-of-reference" type: "precedent" site: "AI Law Framework" id: "a48-sustainability-reporting-committee-terms-of-reference" area_id: "A48" kind: "policy" ai_level: "yellow" version: 1 task_ids: ["A48-A20260923-2", "A48-X20260927-2", "A48-X20260927-8"] law_stated_as_at: "2026-10-18" --- # Sustainability reporting committee terms of reference (board oversight of the climate statements and directors' declaration) > Terms of reference for a board committee (or a remit added to the audit and risk committee) overseeing the mandatory sustainability report: membership, duties, the evidence directors need for the declaration,… Canonical page: https://ailawframework.com/precedents/climate-esg-and-sustainability-reporting/sustainability-reporting-committee-terms-of-reference Law stated as at: 2026-10-18 Site index for agents: https://ailawframework.com/llms.txt Terms of reference for a board committee (or a remit added to the audit and risk committee) overseeing the mandatory sustainability report: membership, duties, the evidence directors need for the declaration, sustainability records, protected statements, assurance and the reporting timetable. ## Key facts - Kind: Policy. A policy or procedure for a firm or client. - Practice area: [Climate, ESG & Sustainability Reporting](https://ailawframework.com/precedents/climate-esg-and-sustainability-reporting.md) - Jurisdictions: Australia, Commonwealth - AI level: Yellow. AI can help in set ways. A lawyer checks specific points before use. - Law stated as at: 2026-10-18 - Status: Maintained. Checked on 2026-10-18 against the 5 authorities it cites, for Australia and Commonwealth. ## When to use it Use when a Group 1, 2 or 3 reporting entity under Chapter 2M of the Corporations Act sets up board oversight of its sustainability report, or adds climate reporting to an existing audit and risk committee charter. Adapt for a registered scheme, RSE licensee or CCIV, where the directors of the responsible entity or trustee give the declaration. ## Used for these tasks - [Build a board-oversight evidence table for the climate disclosure](https://ailawframework.com/practice/climate-esg-and-sustainability-reporting.md#A48-A20260923-2) - [Assemble the reasonable-steps record behind the directors' declaration](https://ailawframework.com/practice/climate-esg-and-sustainability-reporting.md#A48-X20260927-2) - [Build the protected-statement register for the sustainability report](https://ailawframework.com/practice/climate-esg-and-sustainability-reporting.md#A48-X20260927-8) ## How AI may be used AI may adapt the terms of reference to the entity's structure, group and reporting timetable; a lawyer or company secretary checks the delegations against the constitution and board charter and confirms the declaration and records duties are correct for the entity's reporting year. **AI may:** - Fit the template to the entity's committee structure, financial year end and reporting group from facts supplied - Build the annual reporting calendar from the financial year, the assurance phasing table and the lodgement date of the annual report - Compare the draft with the existing audit and risk committee charter and list overlaps and gaps **AI must not:** - Must not determine which reporting group the entity is in, or whether the reasonable steps form of declaration still applies - Must not delegate to the committee any decision the Corporations Act or the constitution reserves to the board, including making the directors' declaration - Must not state that a disclosure is a protected statement; that is a legal judgment on each statement **The lawyer checks:** - The board, not the committee, approves the sustainability report and makes the directors' declaration, and the charter says so - The form of declaration (reasonable steps, or the full opinion from years commencing 1 January 2028) matches the reporting year - Sustainability records duties and seven-year retention are allocated to a named owner - The assurance scope in the calendar matches ASSA 5010 for the entity's group and year ## Authorities - [ASIC Regulatory Guide 280 Sustainability reporting (31 March 2025), RG 280.3–RG 280.6 (contents of the sustainability report under Corporations Act 2001 (Cth) s 296A; audit under s 301A)](https://download.asic.gov.au/media/j4rhwyiz/rg280-published-31-march-2025.pdf) - [ASIC RG 280.49–RG 280.52 (sustainability records: Corporations Act 2001 (Cth) ss 285(1)(b), 286A; retention for seven years, s 286A(2))](https://download.asic.gov.au/media/j4rhwyiz/rg280-published-31-march-2025.pdf) - [ASIC RG 280.57–RG 280.59 (directors' declaration: reasonable steps declaration for years commencing 1 January 2025 to 31 December 2027 under s 296A(6) as modified by s 1707C(2))](https://download.asic.gov.au/media/j4rhwyiz/rg280-published-31-march-2025.pdf) - [ASIC RG 280 Table 3 and RG 280.64–RG 280.67 (protected statements and modified liability: Corporations Act 2001 (Cth) ss 1707C, 1707D)](https://download.asic.gov.au/media/j4rhwyiz/rg280-published-31-march-2025.pdf) - [AUASB ASSA 5010 Timeline for Audits and Reviews of Information in Sustainability Reports under the Corporations Act 2001 (compiled, 24 December 2025)](https://www.auasb.gov.au/media/yffbehwp/assa-5010-timeline-for-audits-and-reviews-of-information-in-sustainability-reports-under-the-corporations-act-2001.pdf) ## Full text and drafting notes The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/climate-esg-and-sustainability-reporting/sustainability-reporting-committee-terms-of-reference and through the signed-in MCP connector https://ailawframework.com/mcp/firm. *Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*