Navigating the new landscape of mandatory ASRS standards: what businesses will need to report - 100% Renewables

Navigating the new landscape of mandatory ASRS standards: what businesses will need to report

Welcome back to our in-depth series on the Australian Sustainability Reporting Standards (ASRS). This fourth instalment zooms in on the proposed reporting requirements set by ASRS and what these will mean for Australian businesses. With the new standards set to reshape the climate reporting landscape, understanding what this means for your organisation is more important than ever.

Watch as Barbara Albert, Co-CEO of 100% Renewables, breaks down the ASRS reporting requirements, providing clear insights into what businesses need to prepare for.

Previously in the series

Don’t miss the context behind these developments. Our third blog post explored the evolution of sustainability reporting, setting the stage for the mandatory frameworks introduced by ASRS. Ensure you’re fully caught up: https://100percentrenewables.com.au/the-evolution-of-sustainability-reporting/

The ASRS impact on Australian businesses

The introduction of ASRS will represent a significant shift towards greater transparency and accountability in sustainability reporting. For Australian businesses, this means adapting to new requirements that not only demand disclosure of carbon footprints and climate risks but also call for a strategic approach to sustainability practices.

Figure 1: The four main pillars of ASRS reporting
Figure 1: The four main pillars of ASRS reporting

The four main pillars of ASRS reporting

The draft ASRS, inspired by the TCFD framework, mandates disclosures across four areas:

1️⃣Governance: Your business must detail how it oversees climate-related risks and opportunities. This includes explaining the roles, responsibilities, and competencies of those in charge, and how climate considerations are integrated into your business strategy and risk management. Additionally, you’re expected to outline your governance processes, controls, and procedures for managing climate-related issues.

2️⃣Strategy: You are required to articulate your strategy for addressing climate risks and opportunities, explaining their impact on your business model, value chain, and financial planning. This encompasses the timeframes over which risks and opportunities are expected to manifest. Essential to this pillar is how climate considerations shape your strategic planning, including transition plans and the employment of scenario analysis to assess your resilience to various climate scenarios.

3️⃣Risk Management: Disclosures must cover how your business identifies, assesses, prioritises, and monitors climate-related risks and opportunities, alongside detailing the integration of these practices within your overall risk management strategy.

4️⃣Metrics and Targets: Reporting on greenhouse gas emissions is a cornerstone of ASRS compliance. Businesses must disclose Scope 1, Scope 2, and notably, Scope 3 emissions, adhering to methodologies set forth in the NGER Scheme legislation or other internationally recognised standards. Additionally, both quantitative and qualitative climate-related targets must be shared, specifying whether these targets are gross or net, to clarify the role of offsets in your strategy.

Conclusion

Embracing the proposed ASRS reporting is not just about meeting new compliance requirements; it represents a commitment to transparency, sustainability, and resilience amidst the growing challenges of climate change. Beginning early with understanding and integrating these disclosures into your business practices will position your organisation as a leader in climate action.

At 100% Renewables, we specialise in empowering businesses with the necessary tools and strategies to prepare for ASRS compliance. Whether it’s providing carbon footprint assessments, identifying climate-related risks and opportunities, establishing targets, or developing transition plans, we’re dedicated to supporting you through each phase of the process.

Stay with us as we navigate these developments, offering expert guidance to ensure your business is ready to meet the challenges and seize the opportunities presented by ASRS. For more insights and support on preparing for ASRS compliance, visit our service offerings on our website and connect with us. Together, let’s shape a sustainable future for your business.

Next in the series

In our forthcoming article, we’ll dive deep into the ASRS cohorts, detailing the categorisation of businesses into distinct groups based on their size and reporting obligations. This is crucial for understanding where your company fits within the ASRS framework and what specific reporting timelines and requirements apply to you. We’ll explore the criteria defining each cohort – from large, publicly-listed entities to smaller organisations – and outline the steps each needs to take to comply with the evolving sustainability reporting standards. This guidance will be invaluable for businesses preparing to meet their ASRS obligations and seeking to use these standards as a springboard for deeper sustainability integration and leadership.

ASRS Complimentary Course

In our ongoing dedication to assist businesses in their sustainability endeavours, we’ve revamped this multi-part blog and video series into a complimentary online course. Alongside the video content, the course offers additional resources and quizzes designed to enhance your comprehension of the ASRS.

Kickstart your journey towards mastering the ASRS. Join now by following this link. Don’t hesitate to share this opportunity within your network to collectively advance the climate agenda.

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