NettZero Carbon
ASRS Advisory: Australia’s Mandatory Climate-Related Financial Disclosure Framework
Prepare your organisation for mandatory climate reporting with expert ASRS advisory support.
NettZero helps Australian businesses navigate the Australian Sustainability Reporting Standards (ASRS), including AASB S1 and AASB S2, from first principles through to disclosure-ready, audit-defensible sustainability reports.
Whether you require end-to-end delivery or targeted support across emissions, climate risk, scenario analysis or transition planning, NettZero provides practical ASRS advisory services aligned with Australia’s regulatory, assurance and investor expectations.
What is ASRS?
The Australian Sustainability Reporting Standards (ASRS) are Australia’s new mandatory climate-related financial disclosure regime, introduced under the Corporations Act and aligned with the global IFRS Sustainability Disclosure Standards.
ASRS requires in-scope organisations to disclose how climate-related risks and opportunities affect their:
Governance
Strategy
Risk management
Metrics and targets
Financial position and performance
ASRS moves climate reporting out of standalone ESG reports and into the core financial reporting framework, subject to governance, controls and assurance.
| Disclosure Type | 1st Year | 2nd Year | 3rd Year | 4th Year |
|---|---|---|---|---|
| Corporate Governance | Reasonable Assurance | Reasonable Assurance | Reasonable Assurance | Reasonable Assurance |
| Scope 1 & 2 Emissions | Limited Assurance | Reasonable Assurance | Reasonable Assurance | Reasonable Assurance |
| Scope 3 Emissions | Optional | Limited Assurance | Limited Assurance | Limited Assurance |
| Transition Plan | No Assurance | Limited Assurance | Limited Assurance | Reasonable Assurance |
| Climate Resilience Assessment | No Assurance | No Assurance | No Assurance | Reasonable Assurance |
| Qualitative Scenario Analysis | No Assurance | Limited Assurance | Limited Assurance | Reasonable Assurance |
| Quantitative Scenario Analysis | Optional | Optional | Optional | Reasonable Assurance |
Who needs to report?
Mandatory climate reporting under AASB S2 is phasing in across three groups, based on entity size and reporting obligations.
- Over 500 employees
- Consolidated group assets of $1 billion or more at financial year end
- Consolidated revenue of $500 million or more for the financial year
- Entities required to report under Chapter 2M of the Corporations Act that are a controlling corporation under the NGER Act and meet the NGER publication threshold
- Over 250 employees
- Consolidated group assets of $500 million or more at financial year end
- Consolidated revenue of $200 million or more for the financial year
- Entities required to report under Chapter 2M of the Corporations Act that are a controlling corporation under the NGER Act and meet the NGER publication threshold
- Over 100 employees
- Consolidated group assets of $25 million or more at financial year end
- Consolidated revenue of $50 million or more for the financial year
- Entities required to report under Chapter 2M of the Corporations Act that are a controlling corporation under the NGER Act and meet the NGER publication threshold
AASB S1 – General Sustainability Financial Disclosures
AASB S1 sets the overarching framework for sustainability-related financial disclosures, including governance, risk management, materiality and connectivity with financial statements.
AASB S2 – Climate-Related Financial Disclosures
AASB S2 focuses specifically on climate risk and opportunity, including:
Physical and transition climate risks
Scenario analysis
Climate resilience
Greenhouse gas emissions (Scope 1, 2 and 3)
Climate-related targets and transition planning
In practice, AASB S2 drives most of the technical workload for organisations reporting under ASRS.
Disclosure made simple.
Our experienced consultants are committed to delivering accurate, audit-ready climate disclosures under ASRS, supported by robust emissions accounting, governance, and risk management processes.
We can support organisations across the full ASRS reporting lifecycle, from standalone emissions inventories (Scope 1, 2 and 3) through to complete Sustainability Reports aligned with AASB S1 and AASB S2, or provide targeted assistance for specific components where internal capability already exists.
Whether you require end-to-end ASRS advisory or support with discrete elements such as emissions data, double materiality, scenario analysis, transition planning, or disclosure drafting, NettZero works alongside your finance, risk and sustainability teams to ensure your reporting is compliant, defensible, and fit-for-assurance.
How ASRS Advisory works
ASRS Readiness & Gap Assessment
Data, Governance, Materiality & Risk
Emissions Assessment
We develop audit-ready greenhouse gas inventories aligned with the GHG Protocol and ASRS expectations, focusing on the data most material to your business and stakeholders.
Scenario Analysis & Transition Planning
Disclosure & Assurance Readiness
We compile your ASRS-aligned Sustainability Report including climate statements, notes, metrics and targets and prepare your organisation for auditor review, assurance requirements, and ongoing annual reporting cycles.
From draft to disclosure
Once finalised, your ASRS-aligned Sustainability Report is incorporated into your organisation’s annual reporting package and submitted in accordance with the Corporations Act.
Your climate statements, governance disclosures, emissions inventory, scenario analysis, and transition planning will form part of the public Sustainability Report available to investors, regulators, and stakeholders.
ASRS climate reporting is an annual requirement, meaning your organisation will repeat this process each reporting cycle — updating emissions data, reviewing material risks and opportunities, refining scenario analysis, and tracking progress against climate-related targets. This ensures your disclosures remain accurate, current, and aligned with evolving regulatory and assurance expectations.
Free resources for ASRS reporting
Free AASB S2 Reporting Checklist
Mining Services S2 Sample Report
Commercial Property S2 Sample Report
Download a climate disclosure example for commercial property owners, showing how governance, climate risk, emissions, scenario analysis, and transition planning come together in an ASRS-ready Sustainability Report.
AASB S2 Metrics & Targets Template
A ready-to-use Excel template that walks you through every mandatory AASB S2 Metrics & Targets disclosure with guidance notes, worked examples, and a clean working version you can hand straight to your finance team.
Trusted by organisations across every sector
From retail and manufacturing to government, our clients rely on NettZero for accurate, audit-ready emissions reporting.
Working with NettZero has improved our understanding of emissions across the business, particularly within Scope 3 and freight-related activities. Their team provides a clear, practical approach to emissions reporting, helping us better understand key hotspots and strengthen the quality of our data. The additional freight emissions analysis delivers valuable insights that will support future decision-making and sustainability initiatives.
NettZero has become a trusted extension of our team. They consistently deliver our Australian emissions inventory on time and to a high standard, which allows us to stay focused on our day-to-day responsibilities with confidence that the reporting is accurate, well supported, and audit-ready.
Working with NettZero gave us a clear starting point for measuring our carbon footprint and understanding where our biggest impacts sit. Their team made the process practical and manageable, helping us organise the right data, identify lower emissions opportunities, and build a solid foundation that supported our broader sustainability goals, including our B Corp certification journey.
NettZero has provided valuable verification and technical guidance across our emissions inventory and reporting processes. Their support with emissions factors, estimation methodologies, and evidence requirements has strengthened our reporting capability, while digitising our inventory has significantly improved the efficiency of quarterly reporting.
Our Clients
End-to-end climate action suite
Measure
Benchmark your organisation's emission inventory, also known as a carbon footprint. This represents a snapshot of 12 months of operational emissions related to your organisations activity.
Reduce
Introduce emission control initiatives and reduce your organisation's carbon footprint. Understand where your organisation can make meaningful reductions in greenhouse gas emissions and lower overhead costs for utilities.
Offset
Some emissions are hard to avoid. Carbon offsets can be used to balance the books of your emissions inventory to achieve net-zero emissions in the near-term while real emission reduction initiatives continue.
Your stakeholders care about carbon. Show them you mean business.
ASRS FAQs
What are the ASRS standards in Australia?
ASRS are Australia’s mandatory climate reporting standards, issued by the AASB in September 2024. They consist of two standards: AASB S1 (voluntary, broader sustainability) and AASB S2 (mandatory, climate-related disclosures). AASB S2 requires eligible entities to report across four pillars (Governance, Strategy, Risk Management, and Metrics & Targets) and is closely aligned with the global IFRS S2 standard.
What is the difference between ASRS and IFRS?
IFRS sustainability standards (S1 & S2) are a global baseline published by the ISSB. Australia’s ASRS (AASB S1 and AASB S2) are directly modelled on them, but with one critical difference: they’re law.
AASB S2 is enforceable under the Corporations Act 2001, overseen by ASIC, and carries civil penalties for non-compliance. IFRS standards only become mandatory where individual countries legislate them.
Is sustainability reporting mandatory in Australia?
Yes, for many entities. Mandatory climate reporting under AASB S2 is rolling out in three phases:
• Group 1: From 1 January 2025 (large listed entities & financial institutions)
• Group 2: From 1 July 2026 (mid-to-large entities)
• Group 3: From 1 July 2027 (smaller in-scope entities)
ASIC is actively overseeing compliance. If you’re unsure which group you fall into, now is the time to find out.
What does assurance mean under ASRS, and when does it apply?
Assurance is an independent review of your sustainability report, similar to a financial audit. Under ASRS, it phases in progressively: limited assurance on key disclosures from Year 1, expanding across all components by Year 3, and full reasonable assurance from Year 4.
The bar rises quickly. Organisations that don’t build audit-ready processes from the start will face significant disruption later.
What are Scope 1, 2 and 3 emissions, and do I need to report all of them?
• Scope 1: Direct emissions you control (e.g. company vehicles, on-site operations)
• Scope 2: Indirect emissions from purchased electricity and energy
• Scope 3: All other value chain emissions, often the largest and hardest to measure
AASB S2 requires Scope 1 and 2 disclosure. Scope 3 is required where material, with some transitional relief in early years. Don’t underestimate Scope 3; gathering reliable supply chain data takes time.