AASB S2 and ASRS: Core Elements of Australian Climate Reporting

The Australian Sustainability Reporting Standards (ASRS) establish a comprehensive framework for climate-related financial disclosures. Here's a high-level summary of the key requirements:

Scope and Timelines

ASRS applies to entities required to prepare financial reports under Chapter 2M of the Corporations Act 2001, with a phased implementation:

• Group 1: Reporting from 1 January 2025

• Group 2 (including Asset Owners with $5bn+ AUM): From 1 July 2026

• Group 3: From 1 July 2027

*The National Greenhouse and Energy Reporting (NGER) Scheme is a framework for reporting company information about: greenhouse gas emissions. energy production. energy consumption (Clean Energy Regulator).

Core Disclosure Elements

The ASRS framework maintains four key areas aligned with TCFD (Task Force on Climate-related Financial Disclosures) and IFRS (International Financial Reporting Standards) standards:

1. Governance: Disclose board and management oversight of climate-related risks and opportunities.

2. Strategy: Assess potential impacts of climate change on business model, strategy and financial planning across various time horizons.

3. Risk Management: Outline processes for identifying, assessing and managing climate-related risks.

4. Metrics and Targets: Report on specific measurements and goals related to climate performance, including greenhouse gas emissions.

These core elements form the foundation of ASRS reporting, requiring organisations to provide a holistic view of their climate-related risks, opportunities and strategies. The following sections will delve deeper into the quantitative aspects and specific challenges of these requirements.