S1
General Standard
The scope of S1 covers all sustainability-related risks, not just climate.
AASBASRS S1explained
General requirements for Australia's sustainability-related financial disclosures.
AASB ASRS S1 will mirror IFRS S1, setting out how Australian entities disclose sustainability-related risks and opportunities. This page breaks down the voluntary and mandatory considerations.
What is AASB S1?
AASB S1 is the Australian version of IFRS S1. It outlines general requirements for sustainability-related financial information, covering governance, strategy, risk management, and metrics & targets across all sustainability topics.
TCFD
Structure
AASB S1 Disclosures build on the four Task Force on Climate-related Financial Disclosures (TCFD) pillars.
Status
Voluntary
Organisations can use S1 voluntarily before mandatory adoption begins.
Key AASB S1 focus areas
Governance. Describe oversight of sustainability-related risks and opportunities.
Strategy. Explain impacts on business model, strategy, and financial planning.
Risk management. Share processes for identifying, assessing, and managing sustainability risks.
Metrics & targets. Disclose KPIs, targets, assumptions, and progress.
WHY IT MATTERS
Why AASB S1 unlocks better sustainability reporting
Consistency. A common structure reduces guesswork.
Voluntary advantage. Early adopters can rehearse disclosures before the regime is mandatory.
Investor readiness. Investors and lenders already expect TCFD-aligned transparency.
Risk visibility. Reporting across the four pillars surfaces gaps before regulators ask.
STRUCTURE
How to structure AASB S1 disclosures
- Map governance owners. List board committees, executives, and management roles overseeing sustainability.
- Link strategy narratives. Connect sustainability topics to business strategy, resilience, and capital allocation.
- Document risk processes. Show how sustainability risks integrate with enterprise risk management.
- Align metrics + targets. Provide consistent methodologies, baselines, and progress updates.
MEASUREMENT
AASB S1 measurement priorities
- Materiality lens. Focus on information that could affect enterprise value, not every possible metric.
- Connectivity. Explain links between sustainability data and financial statements.
- Comparability. Use consistent units, methodologies, and explanations across periods.
- Controls & assurance. Establish review processes even if reporting is voluntary today.
Kick-start AASB S1 readiness
Pilot voluntary reporting. Publish a TCFD-style report following the S1 structure.
Log sustainability-related risks in RunSustainably. Keep owners, mitigations, and approvals visible.
Align finance + sustainability teams. Set up a joint working group to manage data quality.
GLOSSARY SNAPSHOT
AASB S1 glossary snapshot
AASB S1. General Requirements for Disclosure of Sustainability-related Financial Information.
Voluntary sustainability reporting. Publishing sustainability disclosures before the regime becomes mandatory.
Sustainability-related risks. Risks arising from environmental, social, and governance factors that affect enterprise value.
FAQS
AASB S1 explained FAQs
What is AASB S1?
It is the Australian equivalent of IFRS S1, covering general sustainability-related financial disclosures.
Is S1 mandatory yet?
Mandatory timing depends on Treasury legislation, but entities can apply S1 voluntarily now.
How does S1 relate to TCFD?
The four pillars—Governance, Strategy, Risk Management, Metrics & Targets—mirror TCFD requirements.
What data do we need?
Focus on sustainability-related risks, opportunities, and metrics that could influence enterprise value, plus narrative context.
Drova RunSustainably keeps objectives, approvals, and disclosures aligned across finance and sustainability teams.
Ready to organise ASRS reporting in one place?
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