Australian Sustainability Reporting Standards
What is this reporting obligation all about?
Following years of the investment community demanding increasing amounts of consistent sustainability-related information, the International Sustainability Standards Board (ISSB) was formed by the IFRS Foundation. They developed a set of sustainability-related disclosures (based on the TCFD framework) to provide global standards (IFRS S1 & IFRS S2) for jurisdictions to choose to adopt or not.
The Australian government have made these standards, adapted for the Australian context (ASRS1 & ASRS2). While ASRS1 covers a broad range of sustainability-related topics, it is voluntary. While ASRS2 is focused on climate-related disclosures and is mandatory for a progressively increasing number of companies over time.
Who needs to report?
Entities that are required to lodge financial reports under Chapter 2M of the Corporations Act 2001 and meet the thresholds within one of the categories in the table.
| Entity thresholds: must meet at least 2 of the 3 | NGER reporters | Asset owners | |||
|---|---|---|---|---|---|
| Consolidated gross revenue | Consolidated assets | Employees | |||
| Group 1 | $500m | $1bn | >500 | Above NGER threshold | Not included |
| Group 2 | $200m | $500m | >250 | All other NGER reporters | <$5bn in assets under management |
| Group 3 | $50m | $25m | >100 | N/A | Same as entity thresholds |
What do you need to do?
The first step you need to take is to understand what your business is doing in relation to climate-related risks and opportunities within strategy, governance, risk management and setting metrics and targets. Once you understand your starting point, you can build a plan to put the right processes, systems and procedures in place to meet your future reporting obligations. The bonus is that doing this will help your business integrate climate into your practices and ensure you’re prepared for future impacts.
How can we help you?
Tamarack Consulting has partnered with EnergyLink Services to provide a full service offering to support your reporting needs. Whether you’re at the start and aren’t sure what to do or you need help integrating the outcomes of a gap analysis, we can help you find the value that this new regulation can create.
Contact us.
jodi@tamarack.com.au