Meet Australia’s AASB S1 & S2 climate‑risk disclosure standards with Claritas ESG – the AI chatbot that cuts research time, clarifies requirements and helps you report with confidence.
of ASX 200 companies have a Net‑Zero target
disclose some Scope 3 emissions
have undertaken & disclose scenario analysis
ESG (Environmental, Social, Governance) is a framework for assessing non‑financial factors that influence a company’s long‑term value. ESG initiatives enhance resilience, strengthen stakeholder trust and drive operational efficiency.
The Australian Sustainability Reporting Standards (ASRS), aligned to IFRS S1/S2, apply from 1 Jan 2025 for Group 1 entities.
General Sustainability‑related Financial Disclosure
Requires entities to disclose material sustainability risks & opportunities across short, medium & long‑term horizons.
Climate‑related Disclosures
Focuses on governance, strategy, risk management, metrics & targets – including GHG emissions.
Effective 1 Jan 2025Group 1
From 1 Jan 2025
500+ employees, $1bn+ assets or $500m+ revenue; NGER reporters.
Limited assurance initially.
Group 2
Est. 1 Jul 2026
250‑500 employees, $500m‑$1bn assets or $200m‑$500m revenue.
Follows Group 1 path.
Group 3
Est. 1 Jul 2027
100‑250 employees, $25m‑$500m assets or $50m‑$200m revenue.
Assurance phases in.
Thresholds for Groups 2 & 3 are indicative pending legislation.
Understand the four key areas required under AASB S2.
Key disclosure elements:
Understanding the comprehensive governance requirements and liability protections for boards navigating mandatory sustainability reporting in Australia.
ASIC guidance (RG 280.55) emphasizes that directors must apply an inquiring mind to sustainability reports while making independent assessments even when relying on expert information.
The declaration requirements follow a phased implementation approach:
Directors must declare that, in their opinion, the entity has taken reasonable steps to ensure the sustainability report complies with the Corporations Act and AASB S2.
Directors must declare whether, in their opinion, the sustainability report is in accordance with the Corporations Act and AASB S2.
Companies should develop clear policies defining what constitutes "reasonable steps" for director due diligence, similar to prospectus verification processes but adapted to AASB S2 requirements.
Australia's transitional framework provides temporary civil liability protection for specific "protected statements" during the implementation phase:
| Statement Type | Protection Period |
|---|---|
| Forward-looking climate statements | 1-Jan to 31-Dec 2025 only |
| Scope 3 emissions disclosures | 1-Jan 2025 to 31-Dec 2027 |
| Scenario analysis | 1-Jan 2025 to 31-Dec 2027 |
| Transition plan disclosures | 1-Jan 2025 to 31-Dec 2027 |
Most ASX 200 companies now conduct board-level reviews of climate risks quarterly, with in-depth reviews annually. Learn more from our ESG chatbot.
While not explicitly defined by ASIC, appropriate verification processes typically include board approval of methodologies, external review of data, and documented challenge sessions. Consult our chatbot for industry-specific guidance.
Even non‑reporters will face data requests from customers, financiers & insurers preparing their own ASRS reports.
Optimizing operations for environmental efficiency