ASRS Reporting Requirements & Guidance: How to Comply

A Practical Guide to ASRS: Australia’s New Climate Reporting Standards for Businesses

From 2025, large Australian businesses will face new mandatory climate reporting requirements. But even if your company isn’t directly affected just yet, it’s worth getting prepared - because these changes are likely to cascade down the supply chain quickly.

Here’s a straightforward guide to the Australian Sustainability Reporting Standards (ASRS) - what they are, who needs to comply, and how your business can approach them confidently.

What is the ASRS?

The Australian Sustainability Reporting Standards (ASRS) are being introduced by the Australian Accounting Standards Board (AASB) to bring clarity and consistency to sustainability and climate-related reporting.

They’re based on global guidance from the International Sustainability Standards Board (ISSB), and they’ll be rolled out via two core standards:

AASB 1 (based on IFRS S1)

Voluntary for now. AASB 1 sets out general sustainability disclosure requirements. It provides the overarching framework for how organisations should report on all sustainability-related risks and opportunities - not just climate.

It covers the four pillars you’ll hear a lot about:

Governance
Strategy
Risk management
Metrics and targets

Right now, AASB 1 is not mandatory, but businesses can choose to adopt it voluntarily. The idea is to support organisations that want to go beyond climate and start embedding sustainability into broader strategy and reporting.

AASB 2 (based on IFRS S2)

Mandatory (for in-scope businesses, starting FY25). AASB 2 focuses specifically on climate-related financial disclosures -and this is the part that’s mandatory.

It requires in-scope companies to disclose:

Scope 1, 2, and 3 emissions
Climate-related risks and opportunities
Climate targets (such as Net Zero commitments)
Transition plans and governance structures
The financial impacts of climate on their business

This is the standard that forms the basis of mandatory climate reporting in Australia starting from 1 July 2024 for large entities (with phased adoption based on size from FY25 to FY27 - see below).

Why is this being introduced?

There are a few drivers behind the introduction of ASRS.

Investors and regulators are demanding greater transparency. Inconsistent or vague climate disclosures have created confusion and, in some cases, greenwashing. The ASRS aims to fix that by introducing standardised, comparable, and investor-grade reporting.
It brings Australia in line with global markets. The EU has the Corporate Sustainability Reporting Directive (CSRD). The UK and US are introducing ISSB-aligned standards. For Australian companies operating internationally - or supplying to businesses that do - these rules provide much-needed consistency.
Climate risk is no longer theoretical. From physical risks (like extreme weather) to transitional risks (like policy shifts, customer expectations, and rising carbon costs), climate is now a material issue for business.

Who needs to comply?

The standards will be phased in across three groups over the next few years:

Group 1: FY2025

Revenue ≥ $500 million
Gross assets ≥ $1 billion
500+ employees
Or a large financial institution

Group 2: FY2026

Revenue ≥ $200 million
Assets ≥ $500 million
250+ employees

Group 3: FY2027

Revenue ≥ $50 million
Assets ≥ $25 million
100+ employees

Even if you're not in scope yet, it’s worth noting: you may still be asked for climate data as part of your clients’ Scope 3 emissions reporting. For many SMEs, this will be the first touchpoint - especially if you supply to government, listed businesses, or major retailers.

How do you actually go about producing an ASRS-aligned report?

Here’s a simplified, best-practice process for producing an ASRS-compliant report (aligned with both AASB 1 and AASB 2):

1. Measure your carbon footprint

Start with your baseline. You'll need a GHG Protocol-aligned footprint that covers:

Scope 1: Direct emissions from your operations
Scope 2: Indirect emissions from purchased energy
Scope 3: Indirect emissions across your value chain (suppliers, business travel, commuting, etc.)

This is the foundation for the rest of your reporting.

2. Analyse climate-related risks

Use your emissions data to assess how climate change impacts your business model. Consider both:

Physical risks (e.g., floods, fires, supply chain disruption)
Transitional risks (e.g., policy changes, carbon pricing, reputational damage)

This isn’t just a tick-box - it can help you de-risk your business long-term.

3. Set Net Zero targets

The gold standard is to set targets aligned with the Science Based Targets initiative (SBTi). These should include:

A near-term target (e.g., 50% reduction by 2030)
A long-term Net Zero target (e.g., 90% reduction by 2050)

Where possible, targets should be absolute rather than intensity-based (i.e. reducing tonnes of CO₂e, not just emissions per $million revenue).

4. Build a Climate Transition Plan

This is your roadmap for how you’ll reduce emissions over time. It should include:

Emissions hotspots and opportunities to reduce them
A list of concrete actions you’ll take (e.g. supplier engagement, switching to renewables)
Timeline, cost, ownership, and projected impact of each action
A visual emissions reduction pathway, mapping how actions contribute to your targets

5. Integrate climate into governance

Board-level ownership is key. You’ll need to show that your leadership team understands and is accountable for managing climate-related risks.

Make sure roles are clearly assigned and climate is embedded into decision-making, not just a side project.

6. Prepare your disclosures

Finally, you’ll need to present your data in your annual financial report, along with relevant narrative disclosures. In the first year, limited assurance will apply which will move to reasonable assurance over time.

Make sure your data is auditable, consistent, and in line with ASRS guidance.

How Seedling helps businesses to prepare for ASRS

Seedling is designed specifically for growing businesses that want to take credible, data-led climate action, without hiring a sustainability team. Some teams are just getting started – figuring out what to measure and how it all works.

With Seedling, you can easily:

Measure a full-scope carbon footprint in line with the GHG Protocol (Scopes 1, 2, and 3)
Set Net Zero targets in line with the SBTi framework
Analyse your emissions hotspots and build a bespoke decarbonisation plan
Track progress over time and model different reduction scenarios
Automatically generate ASRS-ready reports (GHG inventory, Net Zero plans, climate transition plans)
Get expert guidance at every step - including help understanding tricky datasets and closing gaps

And when you’re ready to report? Just click to export. Our platform auto-generates the key disclosures you need for AASB 1 and AASB 2 compliance - backed by a Seedling assurance statement.