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ASX in our industry

Good governance is a significant driver of shareholder value. ASX is committed to maintaining and promoting high standards of corporate governance for ourselves and for the 2,200 plus entities listed on our exchange.

Leadership in corporate governance

ASX convenes the ASX Corporate Governance Council. The Council was established in 2002 and is an independent body that brings together various business, shareholder and industry groups. ASX nominates the Chair (currently Elizabeth Johnstone), contributes one member to the Council and provides executive support.

The ASX Corporate Governance Council publishes a principles-based framework for corporate governance practices – the Corporate Governance Principles and Recommendations – that serves as a relevant and practical guide for listed entities, investors and the wider Australian community.

ASX’s listing rules require that listed entities disclose the extent to which they have followed the recommendations set by the Council during the relevant reporting period. Where companies have not followed a recommendation, they must provide an explanation (‘if not, why not’ reporting). These reporting requirements bring transparency to the corporate governance practices of listed companies which in turn enables investors to make informed investment decisions.

New edition of the Corporate Governance Principles

The ASX Corporate Governance Council's Corporate Governance Principles and Recommendations were introduced in 2003. A second edition was published in 2007 and a third in 2014.

In February 2019, the Council released a fourth edition of the Principles and Recommendations to ensure they continue to reflect local and international expectations about good corporate governance. The new edition included changes to address culture and values issues, and expanded recommendations and commentary on gender diversity and environmental and social risks, especially risks associated with climate change.

Sustainable Stock Exchanges initiative

ASX is a partner exchange in the United Nations’ Sustainable Stock Exchange (SSE) initiative. The SSE is a peer-to-peer learning platform for exploring how exchanges, in collaboration with investors, regulators and companies, can enhance corporate transparency on ESG issues and encourage sustainable development.

ASX proudly supports International Women’s Day by participating in SSE’s global ‘ringing the bell for gender equality’ initiative. For the fifth year in a row, ASX was the first of the 75 participating exchanges to ring the bell in celebration of International Women’s Day. The bell ringing took place at an event hosted by ASX and 100 Women in Finance, Sydney branch, which brought together senior female leaders in the investment management industry to share their experiences and advice with future leaders.