This lesson examines the growing importance of Environmental, Social, and Governance (ESG) reporting and other emerging regulatory issues affecting treasury .

7.1 ESG Reporting

ESG factors are increasingly central to financial regulation and reporting. The ACT Diploma includes “ESG reporting” as a core topic . Key elements include:

  • Climate Risk: Assessing and reporting on climate-related financial risks.

  • Sustainability Reporting: Disclosing environmental and social impacts.

  • Governance: Corporate governance and ethical standards.

The ACT’s Certificate in Treasury also addresses the “recent trends and developments” and their “impact for treasury” .

7.2 Regulatory Environment

The regulatory environment has a significant impact on treasury operations. The ACT Diploma requires candidates to “examine the requirements and implications of the regulatory environment on treasury transactions, strategy and reporting” . Key areas include:

  • Prudential Regulation: Capital and liquidity requirements.

  • Conduct Regulation: Fair treatment of customers and market integrity.

  • Tax Regulation: Domestic and international tax compliance.

7.3 Contemporary Issues

Treasury professionals must also manage broader events arising from changes in the economic and political landscape . This includes:

  • Geopolitical Risk: The impact of political events on financial markets and treasury operations.

  • Economic Policy: The impact of monetary and fiscal policy on interest rates and exchange rates.

  • Technological Change: The impact of digitalisation and automation on treasury operations.

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