Understanding Australia’s Sustainability Reporting Standards (ASRS)

Climate and sustainability reporting has entered a new phase in Australia. With mandatory climate disclosures now underway for Australia’s largest entities and additional cohorts to follow, organisations are increasingly focused on understanding what the Australian Sustainability Reporting Standards (ASRS) mean in practice and how expectations will evolve over time.

The ASRS comprises AASB S1 and AASB S2, which together establish the foundation for sustainability-related financial disclosures in Australia. While AASB S1 provides a broader framework for reporting sustainability-related risks and opportunities and remains voluntary, AASB S2 focuses specifically on climate-related disclosures and is being introduced on a phased basis for organisations that meet the relevant size thresholds.

Building on the TCFD recommendations, AASB S2 represents an important step forward in climate reporting. While transitional reliefs provide organisations with time to adapt, disclosure requirements will expand over the coming years as those reliefs fall away and reporting practices continue to mature.

In this short video, our team explains the key features of AASB S1 and AASB S2, Australia's phased implementation approach for climate-related disclosures, and practical steps organisations can take today to build a strong foundation for future reporting requirements.

For further insights on Australia's evolving climate reporting landscape, explore our recent articles:

Climate Reporting in Australia: What the 2026-27 Budget Changes Mean for Your Organization

AASB S2 in Practice: Early Structural and Governance Insights from Australia's First Climate Reporters