Australian Sustainability Reporting Standards (ASRS)

Australian Sustainability Reporting Standards (ASRS): phased mandatory climate disclosure under the corporations act, covering scope 1 & 2 emissions, then scope 3, plus scenario analysis and transition plans.

Jurisdiction
Status
active
Category
First deadline
FY 2024/25 for Group 1 entities (first reports due 2026)
Who must comply
Australian entities meeting at least two of three size criteria (revenue, assets, employees) or NGER facility emissions, phased in three groups. Group 1: AU$500M+ revenue, AU$1B+ assets, or 500+ employees; Group 2: AU$200M+, AU$500M+, or 250+; Group 3: AU$50M+, AU$25M+, or 100+.
Penalties
Full enforcement under the Corporations Act, with civil penalties applicable for false, misleading, or incomplete disclosures. Directors may face personal liability and reputational damage (with a transitional relief period ending around 2028).

What it is

The Australian Sustainability Reporting Standards (ASRS) establish mandatory, climate-related financial disclosure requirements for Australian entities, introduced via the Treasury Laws Amendment Act 2024 and embedded into the Corporations Act.

The standards require phased reporting on governance, strategy, risk management, and metrics and targets, including scenario analysis and transition plans, to give markets consistent climate information.

Who must comply

Entities must report if they meet at least two of three thresholds based on revenue, assets, and employees, or exceed NGER facility emissions, with obligations phased across three groups of declining size. Group 1 covers the largest entities (AU$500M+ revenue, AU$1B+ assets, or 500+ employees), followed by Group 2 and then Group 3 (AU$50M+ revenue, AU$25M+ assets, or 100+ employees).

What you must disclose

Entities must disclose governance oversight, climate-related strategy, and risk management processes, along with Scope 1 and 2 emissions (mandatory from year one) and Scope 3 emissions (from year two onward). Disclosures must also include scenario analyses, including 1.5C pathways, and transition plan alignment.

Timeline

ASRS was introduced in September 2024 via the Treasury Laws Amendment Act 2024 and embedded into the Corporations Act, with phased implementation beginning January 1, 2025. Group 1 entities report for FY 2024/25 (due 2026), Group 2 for FY 2026/27 (due 2027), and Group 3 for FY 2027/28 (due 2028).

Scope 1 and 2 emissions are required from the first year, with Scope 3 emissions required from the second year onward.

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