When Australia passed legislation to mandate climate reporting under the Australian Sustainability Reporting Standards (ASRS), many global firms faced a decision; treat it as a compliance exercise, or use it as an opportunity to transform their business.
The most forward-looking firms have already acted. Rather than delay, they are using ASRS to build robust climate governance, validate scenario planning frameworks, and align enterprise systems with emerging global norms.
Historically, Australia’s reputation on climate policy has long lagged its peers. That is now changing. With the rollout of a regulatory framework grounded in IFRS S1 and S2, Australia has moved from climate laggard to regulatory leader, offering a rigorous, structured model that is drawing international attention.
Opportunities to learn from how organisations are responding
What early movers are doing differently:
- A global beverage brand adapted its existing TCFD disclosures to meet ASRS requirements by incorporating region-specific climate assumptions. It also added water stress metrics, drawn from SASB, to reflect the material risks facing its Australian operations.
- A European insurer integrated ASRS-aligned reporting into its global risk management system. The company mapped climate oversight roles to its board and executive teams and enhanced its scenario testing to account for wildfire risk in Queensland.
- A multinational electronics manufacturer treated Australia as a test environment for validating its internal carbon pricing models. The firm linked shadow pricing to product lines, anticipating that ISSB-aligned disclosures would soon be required across its other jurisdictions.
Each of these companies saw early action on climate risk not as a burden, but as a strategic advantage. By taking the lead, they built internal capability, earned investor confidence, and established expectations for their sector.
Five steps to build ISSB readiness now
At Risilience, we recommend companies with Australian operations or supply chains act on five fronts to prepare for ASRS and beyond:
- Map existing disclosures to identify gaps
Start with a structured gap analysis. What’s already covered under TCFD, CSRD, or voluntary ISSB disclosures? Can those assets be leveraged for ASRS? Identify material gaps in governance artefacts, scenario outputs, or sector-specific metrics.
- Develop a structured scenario analysis process
ASRS requires dual scenario disclosure: a Paris-aligned 1.5°C pathway and a high warming (>2.5°C) scenario. Use Network for Greening the Financial System (NGFS) or IPCC-aligned pathways, localise for Australian risk context (e.g., bushfires, water stress), and link outcomes to business impacts and financial statements.
- Establish robust governance processes
ASRS expects companies to document board oversight and climate responsibilities clearly. Develop internal policies and charters that define roles, reporting lines, and escalation pathways. These documents will be critical in building trust with auditors and regulators.
- Engage cross-functional teams
Sustainability reporting isn’t just for ESG leads. It demands coordinated input from risk, finance, legal, audit, and operations. Break down silos early. Build processes that support traceability, assurance, and regulatory review.
- Test and learn
Use Australia as testing ground. The ISSB framework is global and Australia is among the first to adopt ISSB-aligned disclosure standards, and it has strict rules for assurance and director liability. Piloting here helps organisations refine assumptions, validate data pipelines, and strengthen audit readiness.
A strategic opportunity, not regulatory burden
New sustainability reporting obligations are part of a coordinated global shift towards transparent sustainability reporting. More than 17 jurisdictions have officially committed to ISSB-aligned reporting with another 19 jurisdictions in various stages of regulatory consultation.
Companies that move early will be better placed to streamline disclosures, reduce duplication, and meet investor expectations across markets.
Compliance is not the finish line. Firms that invest in strong governance, decision-relevant scenarios, and sector-specific metrics will be better equipped to manage risk, respond to scrutiny, and build trust with stakeholders.
Australia has sounded the starting gun, but the direction of travel is global. The organisations that act now, will be the ones leading the transition to a nature positive future.
- From January 2025, Phase 1 companies must comply with the ASRS which are aligned to IFRS S1 and S2. Read our ASRS resources and learn how Risilience can support your business to be ASRS compliant and strategically ready.