The Australian Sustainability Reporting Standards (ASRS) are new rules that require big businesses to report on their climate and sustainability risks in line with their financial reporting.
These mandatory reporting requirements are designed to improve transparency on sustainability and climate-related risks for businesses. The Australian standards align with global frameworks like the International Sustainability Standards Board (ISSB) and support Australia’s transition to a more sustainable economy.
What is the ASRS?
The ASRS introduces a set of mandatory climate and sustainability disclosures that aim to provide consistent, comparable and reliable sustainability data. These disclosures are integrated with financial reporting, ensuring that sustainability risks and opportunities are managed with the same rigour as financial risks.
The standards focus on:
- Governance: Who oversees climate and sustainability risks
- Strategy: How the business plans to manage climate risks and opportunities
- Risk Management: Processes for identifying and managing sustainability risks.
- Metrics & Targets: Greenhouse gas emissions (Scope 1, 2 & possibly Scope 3), transition plans, and progress towards climate goals
Who needs to report?
ASRS reporting requirements will be phased in over three stages based on the size and type of organisation. This staggered approach allows businesses to prepare for the new standards while gradually adapting to the increased transparency demands.
Group 1 (Starting January 2025)
1. ASX-listed entities and other large financial institutions
2. Large companies meeting two of the following three thresholds:
- Revenue over $500 million
- Assets over $1 billion
- Over 500 employees
Group 2 (Starting July 2026)
Medium-sized companies meeting two of the following three criteria:
- Revenue over $200 million
- Assets over $500 million
- Over 250 employees
Group 3 (Starting July 2027)
Smaller companies meeting two of the following three criteria:
- Revenue over $50 million
- Assets over $25 million
- Over 100 employees
While smaller entities are not legally required to comply at this stage, they can voluntarily adopt the standards to stay ahead of the curve.
Next steps in preparing for ASRS
- Assess eligibility: Determine which reporting group your business falls under and when reporting becomes mandatory.
- Review governance structures: Ensure clear accountability for sustainability reporting within your leadership team.
- Develop a strategy: Identify climate risks and opportunities relevant to your operations, from sourcing ingredients to packaging and distribution.
- Establish risk management processes: Implement processes to regularly identify, assess, and manage sustainability risks.
- Measure and report: Collect data on greenhouse gas emissions, energy usage, and other relevant sustainability metrics. Set realistic and measurable targets to track progress.
A sustainable future for the liquor industry
The introduction of the ASRS marks a significant step toward greater corporate accountability and sustainability in Australia. For the liquor industry, this is an opportunity to lead by example, demonstrating commitment to environmental stewardship and sustainable growth.