2024
Issued
AASB S1 and AASB S2 issued by the AASB in September 2024.
AustralianSustainabilityReportingStandards(ASRS)
Australia's sustainability disclosure rules, now in force.
The ASRS set out how Australian organisations disclose sustainability and climate-related information: AASB S1 for general sustainability disclosures (voluntary) and AASB S2 for climate (mandatory, phased from 1 January 2025). This hub explains the standards and where to start.
ASRS sustainability overview:
What are the Australian Sustainability Reporting Standards?
The Australian Sustainability Reporting Standards (ASRS) are the sustainability disclosure standards issued by the Australian Accounting Standards Board in September 2024. They comprise AASB S1, a voluntary standard for general sustainability-related financial disclosures, and AASB S2, the mandatory climate disclosure standard. AASB S2 reporting is phased in under the Corporations Act 2001, starting with annual reporting periods beginning on or after 1 January 2025 for Group 1 entities.
2025
First reports
Group 1 reports from annual periods beginning on or after 1 January 2025.
3
Reporting groups
Phased in by entity size under the Corporations Act 2001 through to 2027.
What standards make up the ASRS?
AASB S2, mandatory. The climate disclosure standard: governance, strategy, risk management, and metrics and targets, phased from 1 January 2025. Read the AASB S2 explainer.
AASB S1, voluntary. General sustainability-related financial disclosures for entities that choose to report beyond climate. Read the AASB S1 explainer.
The ISSB foundation. Both standards localise IFRS S1 and IFRS S2, keeping Australian disclosures comparable internationally.
The legal machinery. The Corporations Act 2001 phase-in, ASIC oversight and assurance requirements make climate reporting mandatory, not optional.
Why it matters
Who must report under the ASRS, and from when?
Mandatory for large entities. Climate reporting under AASB S2 is phased in under the Corporations Act 2001 in three groups.
Group 1 first. Annual reporting periods beginning on or after 1 January 2025.
Groups 2 and 3 follow. From 1 July 2026 and 1 July 2027, based on consolidated revenue, gross assets and employees.
Check where you fall. Our applicability page works through the thresholds in a few minutes.
Framework
How do the ASRS relate to IFRS and the ISSB?
The ISSB sets the global baseline. IFRS S1 and IFRS S2 are the international sustainability disclosure standards.
The AASB localised them. The ASRS adapt the IFRS standards to Australian law, with climate first.
Parliament made climate mandatory. The Corporations Act 2001 amendments passed in 2024 set the phased reporting groups.
ASIC and the AUASB oversee compliance. Regulator guidance and assurance standards translate the ASRS into enforcement and audit expectations.
Measurement
What do the ASRS require you to disclose?
Governance. Board oversight and management’s role in sustainability-related risks and opportunities.
Strategy and resilience. Business model impacts, scenario analysis and transition planning, especially for climate.
Risk management. How sustainability-related risks are identified, assessed and managed alongside other risks.
Metrics and targets. KPIs, targets, methodologies, and Scope 1, 2 and material Scope 3 emissions under AASB S2.
Next steps for ASRS readiness
1. Check if it applies to you. Work through the thresholds and find your reporting group on the applicability page.
2. See where you stand. The readiness assessment scores your process in about three minutes.
3. See what you must disclose. The full AASB S2 disclosures checklist, with clauses and audit evidence.
4. Run the process. The CFO’s six-step operating guide, from the standard to an assurance-ready disclosure.
Glossary snapshot
ASRS glossary snapshot
ASRS. The Australian Sustainability Reporting Standards, issued by the AASB in September 2024.
ISSB. The International Sustainability Standards Board, which issued IFRS S1 and S2, the global baseline.
Corporations Act phase-in. The 2024 amendments that make climate reporting mandatory for Groups 1 to 3.
FAQs
Australian Sustainability Reporting Standards (ASRS) FAQs
What does ASRS stand for?
Australian Sustainability Reporting Standards: the sustainability disclosure standards issued by the Australian Accounting Standards Board (AASB) in September 2024.
Are the ASRS mandatory?
AASB S2, the climate standard, is mandatory and phased in under the Corporations Act 2001: Group 1 from annual reporting periods beginning on or after 1 January 2025, Group 2 from 1 July 2026, and Group 3 from 1 July 2027. AASB S1 is voluntary.
Is ASRS the same as IFRS S1 and S2?
The ASRS are based on IFRS S1 and S2, adapted for Australian law. Structure and language stay familiar for anyone who knows the IFRS standards.
What is the difference between AASB S1 and AASB S2?
AASB S1 covers general sustainability-related financial disclosures and is voluntary. AASB S2 covers climate and is mandatory for entities captured by the phase-in.
How do the ASRS relate to TCFD?
AASB S2 keeps the four TCFD pillars: governance, strategy, risk management, and metrics and targets.
Thresholds, reporting groups and first reporting periods, answered in one place.
Find out if AASB S2 applies to you.
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.
AASB S2 disclosures checklist
Refresh the fundamentals before diving into ASRS specifics.
The CFO's ASRS reporting operating guide
Plan how you’ll collect the qualitative inputs ASRS expects.
