What is ASRS?
The Australian Sustainability Reporting Standards (ASRS) are mandatory climate-related disclosure requirements for large Australian companies, starting January 2025.
Developed by the Australian Accounting Standards Board (AASB), ASRS aligns with international frameworks including ISSB and TCFD, placing climate risks and opportunities on the same footing as financial performance in annual reports.
Why ASRS Matters
ASRS is more than compliance, it's designed to build business resilience and investor confidence
Build Resilience
Identify and manage climate-related risks like extreme weather, carbon pricing, and supply chain disruption
Capture Opportunities
Disclose climate opportunities like renewable energy, green innovation, and shifting consumer demand
Strengthen Governance
Enhance board oversight, risk management, and alignment with investor expectations
Improve Planning
Better long-term planning, valuation, and capital allocation through climate-informed decisions
Who Must Comply?
ASRS is being phased in across three groups from 2025 to 2027
$500M+ revenue, $1B+ assets, or 500+ employees
~700 largest entities
$200M+ revenue, $500M+ assets, or 250+ employees
~2,800 large entities
$50M+ revenue, $25M+ assets, or 100+ employees
~10,000+ medium-large entities
Must meet at least 2 of the 3 thresholds in your group to be captured.
View Full Timeline DetailsWhat You Need to Report
ASRS requires detailed disclosures across four key pillars (aligned with TCFD)
Who in your organisation is responsible for climate risk? How is oversight structured at board and management levels?
- Board oversight of climate-related risks and opportunities
- Management's role in assessing and managing climate risks
- Integration with existing governance structures
How do climate risks and opportunities affect your business model, strategy, and financial planning?
- Climate-related risks and opportunities identified
- Impact on business model and value chain
- Transition planning and scenario analysis
How do you identify, assess, and manage climate-related risks? Is this integrated with enterprise risk management?
- Processes for identifying and assessing climate risks
- Integration with overall risk management
- Climate risk prioritisation and response
What are your emissions and climate-related targets? How are you tracking progress?
- Scope 1, 2, and material Scope 3 emissions
- Climate-related targets and progress
- Industry-specific metrics where relevant
What's at Stake
ASRS disclosures fall under the Corporations Act. Directors face personal civil liability for false or misleading climate disclosures.
$1.565M
Maximum individual penalty
$15.65M
Maximum corporate penalty (or 10% turnover, capped at $782.5M)
Legal liability: Directors and executives may be personally liable for misleading disclosures
Investor trust: Fund managers view climate exposure as material risk to valuation
Reputation: Companies leading on disclosure attract better talent and partnerships
How ESG Strategy Can Help
We support businesses through every stage of the ASRS journey using our Triple C Framework:
- 1
Confidence
Build executive awareness, benchmark your ESG maturity, understand your obligations
- 2
Commitment
Develop transition plans, scenario models, and board-level strategy
- 3
Consistency
Produce ASRS-ready reports, prepare for assurance, embed ESG into operations
We work inside your business as a Fractional Chief Sustainability Officer, upskilling your team, clarifying expectations, and helping you turn obligations into opportunities.
Ready to Get ASRS-Ready?
Book a free 30-minute strategy session to understand your ASRS obligations and develop a compliance roadmap.
Frequently Asked Questions
Does ASRS apply to private companies?
Yes, ASRS applies to large proprietary companies that meet the size thresholds (two of: $50M+ revenue, $25M+ assets, 100+ employees). Many private companies are also indirectly affected through supply chain requirements from customers or lenders who need Scope 3 emissions data from their suppliers.
What are Scope 1, 2, and 3 emissions?
Scope 1 covers direct emissions from owned or controlled sources (e.g., company vehicles, on-site fuel use). Scope 2 covers indirect emissions from purchased electricity. Scope 3 covers all other indirect emissions across your value chain, including supply chain, business travel, employee commuting, and downstream product use. For most companies, Scope 3 represents 70-90% of total emissions.
How long does ASRS preparation take?
Most mid-market companies need 12-18 months to reach ASRS compliance readiness. This includes establishing governance frameworks, measuring emissions baselines, conducting climate risk assessments, and preparing disclosure documentation. Starting early is critical, companies that wait until 6 months before deadlines often face rushed, low-quality disclosures.
What's the difference between ASRS and TCFD?
ASRS builds directly on the TCFD framework's four pillars (Governance, Strategy, Risk Management, Metrics & Targets) but makes them mandatory under Australian law. ASRS also aligns with ISSB standards (IFRS S1/S2), ensuring Australian disclosures are comparable with international requirements. If you've been following TCFD voluntarily, you're well-positioned for ASRS.
Do I need assurance on my ASRS disclosures?
Yes, ASRS requires limited assurance from the first reporting year, progressing to reasonable assurance by FY2030. This means your climate disclosures must be backed by robust data systems, documentation, and internal controls that can withstand external audit scrutiny.
Can a Fractional CSO help with ASRS compliance?
Yes, a Fractional CSO is often the ideal solution for ASRS compliance. You get senior sustainability leadership to establish governance, oversee emissions measurement, and ensure board-ready disclosures, without the $250,000+ cost of a full-time hire. Most mid-market companies need 12-18 months of intensive support to reach compliance readiness.
Don't Wait Until It's Too Late
ASRS compliance takes 12-18 months to prepare. Book a strategy session today to understand your obligations and get ahead of the curve.
Book Your Strategy Session