Australia's New Climate Reporting Era Is Here

A major shift in Australian corporatereporting has arrived. With the introduction of the Australian SustainabilityReporting Standards (ASRS), a new chapter of transparency and accountabilitybegins. For sustainability practitioners, this is a pivotal moment, and here atDiginex, we’re excited to be at the forefront of this change, ready to help younavigate the new landscape.

As of July 1st, Diginex is proud to supportthe new standards, and we wanted to share a quick and friendly guide to whatyou need to know.

What Are the New Australian Standards?

The ASRS framework is built on the globalbaseline set by the International Sustainability Standards Board (ISSB), butwith a distinctly Australian focus. It consists of two main standards:

• AASB S1 General Requirements for Disclosure of     Sustainability-related Financial Information:     This standard provides a framework for reporting on all     sustainability-related risks and opportunities. Crucially, for now, AASB     S1 is voluntary. It serves as a best-practice guide for entities     wanting to provide a holistic view of their sustainability strategy.
• AASB S2 Climate-related Disclosures: This is the game-changer. AASB S2 is mandatory for     qualifying entities and requires detailed disclosures on climate-related     risks and opportunities. It covers governance, strategy, risk management,     and the metrics and targets you use to measure climate performance.

When Does Mandatory Reporting Begin?

The Australian government has established aphased rollout for mandatory climate reporting under AASB S2, giving businessestime to adapt.

• Group 1: The largest companies and     NGER reporters will be the first, with reporting required for financial     years starting on or after January 1, 2025.
• Group 2: Medium-sized companies,     other NGER reporters, and asset owners with over $5 billion in assets will     begin for financial years starting on or after July 1, 2026.
• Group 3: Smaller entities that meet     the reporting thresholds will follow, for financial years starting on or     after July 1, 2027.

It's also worth noting that there is aone-year grace period for reporting on Scope 3 emissions, giving organizationsextra time to tackle this complex area.

How Do They Differ from the Global ISSBStandards?

While the ASRS aligns closely with theglobal ISSB standards, there are a few key differences practitioners shouldnote:

1. AASB S1 is Voluntary: Unlike the     ISSB’s approach where S1 and S2 are a package deal, Australia has made the     broader sustainability standard (S1) optional, focusing mandatory efforts     on climate (S2).
2. Australian-Specific Measurements:     For greenhouse gas emissions, AASB S2 requires entities to use the     methodologies from Australia’s National Greenhouse and Energy Reporting     (NGER) scheme where practical, rather than the GHG Protocol specified     by the ISSB.
3. No Required SASB Metrics: AASB S2     does not require entities to disclose industry-specific metrics from the     SASB Standards, which simplifies one aspect of reporting compared to the     global baseline.

Your Partner for the New Standards

This is an exciting and transformative timefor sustainability in Australia. These standards will bring greater clarity anddrive meaningful action on climate change. The team at Diginex is ready tosupport your journey with powerful, intuitive tools designed for not just thenew ASRS framework, but also 18 additional ones including GRI, SASB, andCSRD/ESRS!

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