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Australian Climate Reporting Standards and Disclosures

Published Date

Australian Climate Reporting Standards: From Disclosure to Business Opportunity 

Climate-related financial disclosure in Australia is now mandatory, with the government passing the Australian Sustainability Reporting Standards into legislation in September 2024.  

Drawn on disclosure recommendations of the TCFD and ISSB, the Australian Accounting Standards Board (AASB) has published its first two Australian Sustainability Reporting Standards (ASRS) known as ASSB S1 and ASSB S2. These standards are based on IFRS Sustainability Disclosure Standards and ensure that Australia has a rigorous, credible, and internationally aligned climate reporting regime. Furthermore, the establishment of this policy will maintain Australia’s standing as a favored destination for global investment, which will be essential in the shift towards achieving net-zero emissions. While mandatory climate-related financial disclosure (CRFD) is relatively new in Australia, we can benefit from the insights gleaned from companies in other jurisdictions that are already subject to comparable mandates. 

As part of our webinar series focusing on sustainability, Schneider Electric held a session where we discussed the implications and key disclosure requirements from the ASSB S1 and ASSB S2 reporting standards. We reviewed important takeaways such as who is required to report, what the process involves, as well as when and where the disclosures are expected. We also unpacked insights and feedback from early adopters who are already underway in their reporting journey, exploring perspectives and challenges we’ve heard from C-suite, from data to engagement and from reporting to transition planning. 

In addition, we discussed where to start if your company hasn't started the journey yet and covered the importance of Schneider Electric’s 6-step process which was developed from best practice in supporting our clients both locally and globally under similar reporting regimes. These are: 

  • MOBILISE: raise awareness and align vision on requirements 

  • ASSESS: identify gaps between what you have and what is required 

  • PLAN: set an action plan on each gap 

  • BUILD: build capabilities to achieve action plan 

  • REPORT: structure information in a consolidated report 

  • REVIEW: prepare for audit and review    

Our Sustainability Index 2024, our annual survey of more than 500 Australian business leaders, revealed that 67% of business leaders say a lack of data on emissions impacts their decision making and that more than half of companies had not yet assessed or documented climate-related risks & opportunities nor developed a transition plan.  

To find out how Schneider Electric’s tools and services can support you on your sustainability journey and compliance reporting, sign up to view our Australian Climate Reporting webinar and reach out to Diana Chen with any questions.