ASRS Compliance Preparation: 7 Key Steps for AASB S2 Readiness

Preparing for Australian Sustainability Reporting Standards (ASRS) compliance and AASB S2 reporting requires a strategic, systematic approach. This comprehensive roadmap outlines seven essential steps to help your organisation achieve ASRS compliance and AASB S2 readiness.

1. Review Existing Data Practices and Gaps

Identify your entity's reporting obligations and compare current practices with AASB S2 requirements.

2. Enhance Governance

Establish clear oversight of climate-related issues. Strong governance is fundamental to AASB S2 readiness and ensures ongoing compliance.

3. Conduct Emissions and Scenario Analysis

Upgrade data systems to capture required metrics and perform 1.5°C and 2.5°C+ scenario analyses. This step is key for comprehensive AASB S2 reporting.

4. Integrate Climate Risks

Identify and evaluate the impacts of climate transition and physical risks on your business. This integration is essential for robust ASRS compliance.

5. Develop Transition Plans

Set decarbonisation targets and outline concrete steps to achieve them, including potential changes to business operations and investments. This forward-looking approach is critical for long-term AASB S2 readiness.

6. Engage Auditors

Discuss assurance requirements and expectations. Early engagement with auditors supports smooth ASRS compliance preparation.

7. Report Disclosures

Draft climate statements in line with AASB S2 and implement a process for ongoing reporting and refinement. This final step directly addresses AASB S2 reporting requirements.

By following these steps, organisations can effectively prepare for ASRS compliance and AASB S2 reporting. Remember, ASRS compliance preparation is an ongoing process, and staying informed about evolving requirements is key to successful AASB S2 readiness.