New Climate Change Reporting Standards: An Overview of ASSB Legislation, ASRS1, and ASRS2

In today's rapidly changing world, businesses are under increasing pressure to demonstrate their commitment to sustainability and transparency. Australia is overcoming this challenge by introducing new climate reporting standards to revolutionise how companies disclose climate-related impacts. These regulations aim to enhance accountability and offer significant opportunities for businesses to strengthen their environmental strategies. This article explores the ASSB legislation and the Australian Sustainability Reporting Standards (ASRS1 and ASRS2), detailing their implications for large organisations and highlighting how Envizi can help you meet these new requirements seamlessly.

Overview of ASSB Legislation

The Australian Securities and Investments Commission Act 2001 and the Corporations Act 2001 have been amended to empower the Australian Accounting Standards Board (ASSB) to develop and enforce sustainability standards. These changes are part of a comprehensive effort to create a robust framework for climate risk disclosure in Australia. The legislation mandates that large businesses provide detailed reports on climate-related plans, financial risks, and opportunities, aligning with international standards (Treasury Australia) (Treasury Ministers).

Key Components of ASRS1 and ASRS2

The Australian Sustainability Reporting Standards (ASRS1 and ASRS2) are central to the new reporting framework:

1. ASRS1: This standard focuses on the principles and requirements for general sustainability reporting. It provides guidelines on how organisations should measure, disclose, and assure their sustainability impacts, ensuring industry transparency and comparability.

1. ASRS2: This standard explicitly addresses climate-related financial disclosures. It outlines the information organisations must report regarding their exposure to climate risks and the strategies they are implementing to mitigate them. This includes detailed requirements for reporting on greenhouse gas emissions, energy use, and the transition to renewable energy (Treasury) (Treasury Australia).

Reporting Requirements

Under the new standards, organisations meeting any two of the following criteria are required to comply:

• Assets of $1 billion or more
• Annual revenues of $500 million or more
• 500 or more employees

These thresholds ensure that the largest and most impactful entities provide the necessary disclosures to inform investors, regulators, and the public about their climate-related performance and strategies.

Implications for Organisations

The introduction of ASRS1 and ASRS2 marks a significant step towards enhancing corporate accountability in Australia. Organisations will need to develop robust systems for collecting and analysing climate-related data and may need to invest in new technologies and processes to meet the reporting requirements. Additionally, the standards are expected to drive improvements in how companies manage climate risks and opportunities, ultimately contributing to a more sustainable economy.

The Role of Envizi and ISW

In this evolving landscape, tools like Envizi can play a crucial role. Envizi's comprehensive suite of sustainability management software helps organisations streamline their data collection, reporting, and analysis processes. With features such as real-time monitoring, advanced analytics, and customisable reporting, Envizi supports organisations in meeting the stringent requirements of ASRS1 and ASRS2.

Partnering with ISW, an official reseller and implementation partner of Envizi, ensures that organisations can effectively deploy and utilise these tools. ISW provides tailored implementation services, ongoing support, and strategic guidance, enabling organisations to enhance their sustainability reporting and climate performance.

Australia's new climate change reporting standards represent a significant advancement in the quest for greater transparency and accountability in corporate sustainability practices. By adhering to the ASSB legislation and ASRS1 and ASRS2 standards, large organisations can better manage their climate-related risks and opportunities, contributing to a more resilient and sustainable future. With the support of Envizi and ISW, businesses can navigate these changes efficiently and effectively.

Take the first step towards compliance and sustainability excellence today. Contact ISW to learn how Envizi can help your organisation meet the new climate reporting standards and lead the way in sustainable business practices. Visit us at https://info.isw.net.au/envizi or reach out to our team for a consultation.

For more detailed information, refer to the policy statement from the Australian Treasury here and the insights from Grant Thornton here (Treasury) (Treasury Australia).