Understanding ASRS and AASB S2: Australia's Mandatory Climate Disclosures

Australia is ushering in a new era of corporate climate accountability with the Australian Sustainability Reporting Standards (ASRS). Commencing 1 January 2025, these standards mandate comprehensive climate-related financial disclosures for large entities, positioning Australia at the forefront of global reporting practices.

Adapted from International Financial Reporting Standards (IFRS) S2 for the Australian context, ASRS requires companies to assess and report on material climate risks and opportunities. This necessitates:

• Evaluating climate impacts across various timeframes

• Enhancing governance for climate-related issues

• Integrating climate considerations into risk management

• Establishing and monitoring climate-related targets

• Providing detailed quantitative disclosures

For many organisations, meeting these requirements presents significant challenges in data collection, scenario analysis and strategic integration of climate considerations.

Emmi's role is to streamline this complex process. Our Carbon Diagnostics platform delivers comprehensive climate data and risk analysis across all major asset classes, enabling ASRS compliance while offering actionable insights.

This guide serves as an educational resource for Australian entities preparing to meet the mandatory climate-related financial disclosure requirements under the ASRS' “AASB S2” standard.

To clarify the nomenclature here:

• The Australian Accounting Standards Board (AASB) are responsible for creating Australia’s sustainability standards.

• The family of sustainability standards is called the Australian Sustainability Reporting Standards (ASRS) and is composed of the voluntary sustainability standard (“AASB S1”) and the mandatory climate standard (“AASB S2”).

• Henceforth, we will use “ASRS” and “AASB S2” interchangeably.