2024
Launch year
Draft ASRS exposure drafts released mid-2024 for consultation.
AustralianSustainabilityReportingStandards(ASRS)
Understand the new baseline for Australian sustainability disclosures.
ASRS sustainability standards spell out how Australian organisations will disclose sustainability-related risks, opportunities, and metrics. Use this overview to translate the policy intent into an action plan.
ASRS sustainability overview:
What are the Australian Sustainability Reporting Standards?
ASRS refers to the Australian Sustainability Reporting Standards being developed by the Australian Accounting Standards Board (AASB) to localise the IFRS Sustainability Disclosure Standards issued by the ISSB.
IFRS
Global link
ASRS adapts IFRS S1 and IFRS S2 so Australian entities stay globally comparable.
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Phasing
Initial standards centre on climate before expanding to other topics.
ASRS building blocks
AASB leadership. The AASB translates ISSB requirements into Australian legal instruments.
ISSB foundation. ASRS uses IFRS S1 (general) and IFRS S2 (climate) as the reference texts.
Regulatory phasing. Treasury sets cohort thresholds so large reporters move first.
Assurance alignment. ASRS aims to connect with auditor requirements and ASIC oversight.
WHY IT MATTERS
Why ASRS sustainability standards matter for Australian organisations
Global comparability. Investors can compare Australian disclosures to international peers.
Regulatory clarity. The same standards underpin climate legislation, ASIC monitoring, and ASX expectations.
Risk visibility. Boards can benchmark sustainability-related risks and opportunities using consistent language.
Faster readiness. Starting now reduces the scramble when mandatory reporting kicks in.
FRAMEWORK
How ASRS connects AASB, ISSB, and local regulators
- ISSB issues IFRS S1/S2. These global standards set the baseline requirements for sustainability disclosures.
- AASB adapts to ASRS. The Australian board drafts ASRS standards to fit national law and guidance.
- Treasury sets coverage. Legislation defines which entities fall into the phased cohorts.
- ASIC & AUASB oversee compliance. Regulators and auditors translate ASRS into assurance and enforcement expectations.
MEASUREMENT
ASRS disclosure essentials
- Material risks & opportunities. Explain sustainability-related risks and opportunities that could reasonably influence enterprise value.
- Governance narrative. Describe oversight, management roles, and controls for sustainability matters.
- Strategy & resilience. Outline strategy, scenario analysis, and transition plans, especially for climate topics.
- Metrics & targets. Share KPIs, targets, methodologies, and Scope 1, 2, and relevant Scope 3 emissions.
Next steps for ASRS readiness
Map gap against IFRS S1/S2. Compare current reporting to the exposure drafts and log remediation tasks.
Stand up cross-functional governance. Combine finance, sustainability, legal, and risk owners via RunSustainably.
Pilot climate data collection. Test emissions, scenario analysis, and qualitative disclosures before they are mandatory.
GLOSSARY SNAPSHOT
ASRS glossary snapshot
ASRS. Australian Sustainability Reporting Standards issued by the AASB.
ISSB. International Sustainability Standards Board, the global body that created IFRS S1 and S2.
Treasury climate reporting bill. Legislation that will embed ASRS requirements into Australian law.
FAQS
Australian Sustainability Reporting Standards (ASRS) FAQs
What does ASRS stand for?
Australian Sustainability Reporting Standards—the local sustainability disclosure rules being finalised by the AASB.
Is ASRS the same as IFRS S1/S2?
ASRS adapts IFRS S1/S2 for Australia, so language and structure remain familiar while references to local law are added.
Who has to report first?
Large listed entities and financial institutions above Treasury thresholds will move first, followed by smaller cohorts over several years.
How do ASRS relate to TCFD?
ASRS S2 incorporates the four TCFD pillars (Governance, Strategy, Risk Management, Metrics & Targets) for climate disclosures.
Drova RunSustainably keeps objectives, approvals, and disclosures aligned across finance and sustainability teams.
Ready to organise ASRS reporting in one place?
ESG 101 HUB
Explore related topics
AASB sustainability standards
See how the Australian Accounting Standards Board adapts IFRS Sustainability Disclosure Standards.
AASB S1 explainer
Get across general sustainability disclosure requirements.
AASB S2 explainer
Dive into climate-related risks, opportunities, and scenario analysis.
Do I need to comply with AASB S2?
Work out whether your organisation falls into the Australian climate reporting cohorts.
What is ESG?
Refresh the fundamentals before diving into ASRS specifics.
ESG stakeholder engagement
Plan how you’ll collect the qualitative inputs ASRS expects.
