ESG Reporting Landscape
Australian Sustainability Reporting Standards (ASRS)
In our experience, organisations would need 2 years on average to get this reporting process implemented and repeatable.
The Australian government are proposing the IFRS S2 – climate-related disclosures be phased into annual reporting requirements, known as the ASRS, per the timelines in the table to the right. These timelines have been accepted.
The ASRS requires entities to disclose information regarding climate-related risks and opportunities useful to users of general-purpose financial reports in making decisions relating to providing resources to the entity.
Detailed disclosure standards have been formalised in the last few months of 2024.
We recommend Group 2 and 3 companies use this current financial year to evaluate processes, understand the data that is produced and use the recently launched IFRS S2 to anticipate the requirements for disclosures in Australia.
| Entities that meet 2/3 | |||||
|---|---|---|---|---|---|
| First annual reporting periods starting on or after | Employees | Consolidated Gross Assets | Consolidated Revenue | AND | |
| Group 1 | 1 January 2025 | Over 500 | $1b or more | $500m or more | Entities required under Chapter 2M of the Corporations Act are a controlling corporation under the NGER Act and meet the NGER publication threshold. |
| Group 1 | 1 July 2026 | Over 250 | $500m or more | $200m or more | Entities required under Chapter 2M of the Corporations Act that are a controlling corporation under the NGER Act and meet the NGER publication threshold. |
| Group 3 | 1 July 2027 | Over 100 | $25m or more | $50m or more | Entities required under Chapter 2M of the Corporations Act that are a controlling corporation under the NGER Act and meet the NGER publication threshold. |
Four Reporting Pillars
The accounting standards expects that an organisation’s climate disclosures include the following:
Governance
Information about the governance processes, controls and procedures that an entity uses to monitor and manage climate-related risks and opportunities.
Strategy
Information about an entity’s strategy for managing climate-related risks and opportunities.
Risk Management
Information about the goernance how climate-related risks and opportunities are identified, assessed, prioritised and monitored, and wether and how these processes are integrated into its overall risk management framework.
Metrics and Targets
Information about how an entity measures, monitors and manages climate-related risks and opportunties and assesses its performance, including progress towards the targets it has set (if any).