Closely aligned to IFRS’ Sustainability Disclosure Standards (ISSB S2), the Australian Sustainability Reporting Standards (ASRS) took effect 1 January 2025. Reporting is mandatory, capturing local listed and unlisted businesses, and global companies listed in Australia. While disclosure is phased across three reporting groups, the requirements are broad and complex, and organizations need to start preparing.
Reporting under ASRS is mandatory and complexity increases over time: Beginning 1 January 2025, ASRS mandates phased climate-related financial disclosures for Australian companies, with reporting obligations expanding over subsequent years. Early compliance is vital to meet these evolving requirements and demonstrate corporate accountability.
The level of assurance also increases over time: ASRS stipulates that the assurance level for climate-related disclosures will escalate from limited to reasonable, ensuring greater accuracy and reliability of reported information. Companies must prepare for this heightened scrutiny by establishing robust data collection and reporting processes and building transparent audit trails.
Climate risks must be identified, transition plans established, and a strategy developed: Under ASRS, Australian companies will be required to identify and assess climate-related risks and opportunities within their operations and value chains. These must be incorporated into a robust, integrated transition plan that provides a clear path to achieving business’ emissions goals in an unpredictable climate future.
Financial materiality needs to be determined. These insights are sought by the investment community: Determining how business’ sustainability actions could introduce climate-related risks or opportunities capable of affecting financial performance is crucial for transparent ASRS reporting. These reporting standards reflect calls from investors for greater clarity on the sustainability so they can better measure how risky investments are.
Our anonymous ASRS survey takes under five minutes and will show where your business sits on a readiness maturity curve. You will receive recommended next steps, tailored for the level you achieve.
Take the testERM’s roadmap is based on our experience helping companies define and execute their disclosure plans. While each organization’s roadmap will need to be tailored to its climate maturity, internal accountabilities, and ambition, our tool provides key considerations and critical questions to ask at each stage of the journey.
Disclosure risk appetite
Climate risk identification and strategy
Physical risk scenarios
Decarbonisation and transition plans
Emissions quantification and reporting
Scope 3 emissions estimation
Carbon markets strategy
Data management and analytics
Disclosure writing and design
Assistance with audit preparation
Proactive ASRS compliance
Understanding and mitigation of physical and transition risk
Clarity on climate-related opportunities
Robust climate targets and delivery roadmaps
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