ASX CEO says ‘uncertainty and risk’ with net zero target

Guidance from the market is that the move to net zero will be an important theme for the foreseeable future, but will ‘also bring with it uncertainty and risk’, says ASX CEO Helen Lofthouse.

ASX CEO Helen Lofthouse. Picture: Damian Shaw/NewsWire

CEO Survey 2026: FULL COVERAGE

Technology

Which best describes your organisation’s AI adoption? (Exploring/Piloting/Implementing selectively/Scaled across business) If implementing or scaled, are the productivity benefits starting to come through or do you expect more time for the full impact. Has the use of AI started to influence employment decisions across your organisation.

AI is an important part of the world we live in now and like all organisations, we’re learning how we can best leverage its benefits to improve the experience of both our customers and people. We’ve rolled out basic AI assistants for all our staff and have a range of more specific applications currently being trialled. As an operator of critical market infrastructure, data governance, risk and security around AI are always front of mind for us.

We also play a critical role in providing an efficient market for companies (including companies with exposure to AI) to raise capital to fund their growth and expansion. The ASX performs really well in secondary capital raisings by global standards, and a great example is NEXTDC, an ASX-listed data centre operator that provides infrastructure for organisations to run their AI workloads. NEXTDC raised around $700m in September last year to fund the acquisition of new development sites in Asia, and has raised more than $2.5bn over the last 3 years to fund growth. Of course, this also creates more opportunities for Australian investors to access AI-related companies and participate in the global uptake of the technology.

We also have the S&P/ASX All Technology Index, which provides investors access to a broad basket of technology stocks – the

ASX’s fastest growing sector, in a single index.

 People

Has your organisation evolved its approach to flexible working during the past year? Does your organisation have a policy around office attendance. What feedback, if any, do you have for governments considering prescribing working from home for a set amount of days per week.

At ASX, we generally ask employees to work from the office three days a week, however flexible work is most effective when organisations can adapt policies to suit the needs of their people, rather than following a one-size-fits-all approach. We support a range of flexible working arrangements designed to help our people balance work and life, and 84 per cent of our employees say they have the flexibility they need to manage caring and other responsibilities.

Whilst these arrangements are, and will remain, important, the recent relocation of our national headquarters in Sydney to a new building at 39 Martin Place in October has already driven significantly increased office attendance levels. This move returns us to the heart of Sydney’s financial centre, and creating an excellent experience for our people was front of mind from the outset. Our new space has a modern and state of the art design, with a focus on natural light, fresh air and greenery for greater wellbeing, and a range of work zones for people to work their way. Since moving, we have seen a 12 per cent increase in average office attendance, and have recorded attendance of up to 93 per cent of capacity in the weeks after moving.

Geopolitics

How significantly are global trade tensions/tariffs impacting your business? Is Australia getting the balance in managing its big economic and political relationships with major trading partners?

This year there has been significant volatility across the global economic and political landscape, and we have seen this play out in the markets too, with elevated levels of activity across equities, bonds and interest rate and commodity futures. In April, we had our second-largest day ever by trading volumes, with 4.3 million transactions recorded following the announcement of the ‘Liberation Day tariffs’.

As a market operator, our focus is on supporting our clients to trade and risk manage this volatility and uncertainty, by providing access to cash equity market and derivatives instruments across equities, interest rates and commodities. Our interest rate derivatives market is the fourth largest globally and the largest in Asia, and activity across our rates markets this financial year to date reflects ongoing market volatility: the notional value of OTC interest rate derivative contracts centrally cleared was just under $3 trillion, up 23 per cent on a year ago, interest rate futures traded on ASX 24 was $22 trillion – up 4 per cent, and on Austraclear the value of bond settlements was $7 trillion – up 26 per cent while the value of repo settlements was $8 trillion – up 18 per cent.

Energy

Do you have any concerns about Australia’s pathway to renewables? Should there be more flexibility in settings leading to 2035? Are energy costs becoming an increasing factor around your longer-term planning? 

As Australia’s leading energy derivatives exchange and a key source of capital for businesses involved in the energy transition, ASX recognises the important role we play in Australia’s energy future. Guidance from the market is that the move to net zero will be an important theme for the foreseeable future but will also bring with it uncertainty and risk. The market will need products to manage this risk, as well as a transparent curve for price discovery. In response to these needs, and the increasing prominence of renewable energy sources, we have introduced several new products, including new carbon futures contracts, ASX-listed Wallumbilla Gas Futures, and Morning and Evening Peak Electricity Futures Contracts, to sit alongside our core electricity offering. These new products reflect the ongoing commitment we have to solve our customers’ needs, and the broader opportunity for ASX in the energy transition.

We also have an important role to play in ensuring the listed market is informed on local and global developments in ESG – for example, Mandatory Climate Related Disclosures to help listed companies understand their obligations under the International Sustainability Standards Board standards.

Reform

What would nominate as your top policy priority that can be used to lift Australia’s competitiveness or productivity? Should the Albanese government be pushing for even bolder policies around reform?

ASIC’s recently announced capital markets road map is something that we welcome and support – it focuses on practical reforms that foster innovation, improve access to capital and ensure our markets continue to deliver for companies and investors. It is an important step as we continue to evolve the settings of our public markets to ensure they can remain competitive and grow. In particular, it was encouraging to see ASIC support a number of proposals raised in our submission, including streamlining IPO processes, reviewing listing requirements, and supporting public markets reform proposals. ASIC has been very responsive, with the two-year trial of fast-track IPOs for ASX listings already underway. ASIC also sees merit in the idea of insider selldown plans and the benefit of a deep and liquid listed corporate bond market. Legislative reform is required to enable retail investor access to listed corporate bonds, and to take insider sell down plans forward.

Separately, strong corporate governance also remains central to the strength and reputation of Australia’s public markets. We welcome ASIC’s recognition of the importance of simplifying corporate governance frameworks, which aligns with the changes we have recently made that will see ASX assume responsibility for future editions of the Corporate Governance Principles and Recommendations. To ensure our Listing Rules remain effective and fit for purpose, we have also commenced public consultation on shareholder approval requirements, and will continue to engage with ASIC on this.