The Australian ESG Reporting Playbook: Ready for ASRS?
The Australian ESG Reporting Playbook: Ready for ASRS?
Author: Dr Shalini Sharma, Director, Krystahl
EMAIL: ESG@krystahl.in
In today’s dynamic business environment, Environmental, Social, and Governance (ESG) performance has become a strategic priority—not just for compliance, but for creating long-term value. In Australia, the momentum around ESG is accelerating, driven by evolving investor expectations, stakeholder scrutiny, and a fast-approaching wave of mandatory sustainability disclosures.
But what does the ESG reporting and compliance journey actually look like for Australian companies? And how can businesses stay ahead of both national and global standards? Let’s explore this step-by-step roadmap.
Stage 1: Governance & Commitment
The journey begins at the top. Boards and executive teams must take ownership of ESG performance and set the tone for integration across the enterprise. ESG governance structures are essential: board-level ESG committees, executive accountability, and ESG KPIs linked to leadership performance.
Key Outcomes:
- ESG policy and Board ESG charter
- ESG responsibilities embedded in executive roles
- Early alignment with ASX Corporate Governance Council’s Principle 7: Recognise and manage risk
Stage 2: Materiality & Strategy
Not all ESG issues are equal in impact or urgency. Australian companies conduct materiality assessments to identify key ESG issues that influence business performance and matter most to stakeholders—such as climate risk, Indigenous engagement, supply chain ethics, or biodiversity. From there, companies define their ESG strategy and set measurable goals aligned with frameworks like the United Nations Sustainable Development Goals (SDGs) and Australia’s Climate Active program.
Key Outcomes:
- Materiality matrix and stakeholder engagement map
- ESG strategy with clear short- and long-term targets
- Alignment with ISSB/IFRS S1 and S2, and Task Force on Climate-related Financial Disclosures (TCFD)
Stage 3: Framework Selection & Data Architecture
Robust ESG performance relies on consistent, auditable data.Australian companies must select the right reporting frameworks based on their industry, investor base, and regulatory obligations. Increasingly, companies are transitioning to the IFRS Sustainability Disclosure Standards (S1 & S2)—with mandatory adoption for large entities starting from 1 July 2024, as part of Australia’s staged climate-related disclosure rollout by the Australian Treasury.
Key ESG Reporting Standards Used in Australia, and most of these, form the part / contribute to ESG Compliance in Australia:
- IFRS S1 (General Sustainability-related Disclosures)
- IFRS S2 (Climate-related Disclosures)
- GRI Standards (Global Reporting Initiative)- can be referred
- CDP (Carbon Disclosure Project)- can be referred
- NGER Scheme (National Greenhouse and Energy Reporting Act)
- Safeguard Mechanism (for large emitters) - refer relevant documents
- ASX Corporate Governance Principles and Recommendations
- Modern Slavery Act (2018) – mandatory social risk reporting
Key Outcomes:
- ESG framework mapping completed
- Digital platforms integrated for ESG data collection
- Assurance-ready architecture for Scope 1, 2, and 3 emissions
Stage 4: Implementation & Integration
This stage focuses on embedding ESG into day-to-day operations: from procurement to HR to finance. Companies must train employees, conduct supply chain due diligence, and roll out internal ESG reporting cycles. Importantly, this is also the phase where Australian businesses begin implementing processes to comply with the Safeguard Mechanism (for those with over 100,000 tonnes CO₂e/year), and reporting under the NGER Scheme becomes operationalised.
Key Outcomes:
- ESG SOPs rolled out across business units
- Supplier codes of conduct and social/environmental assessments
- ESG-linked procurement and investment decisions
Stage 5: Reporting & Disclosure
Australian businesses are now expected to publish ESG and climate-related disclosures annually. The IFRS S2 standard will soon replace the TCFD framework as the primary climate disclosure benchmark in Australia, so forward-thinking companies are aligning with it now.
Key Outcomes:
- ESG/Sustainability Report prepared in line with IFRS S1/S2
- Climate disclosures aligned with Australian Treasury’s mandatory framework
- Public disclosure on Modern Slavery and emissions (if applicable).
Stage 6: Assurance, Review & Continuous Improvement
After reporting, companies seek limited or reasonable assurance (w.e.f. FY 2027) on key disclosures, particularly for emissions and governance data. Independent assurance builds credibility with investors and regulators. Best-practice companies continuously review their material ESG topics, refresh their strategies, and elevate performance—through circular economy initiatives, nature-positive projects, and industry collaborations.
Key Outcomes:
- Third-party assurance reports
- ESG performance dashboard for internal governance
- Strategic refresh every 2–3 years
Why It Matters
Investor Confidence: ESG excellence reduces capital risk and opens new financing pathways.
Regulatory Compliance: Future-proofing against mandates under the Australian Treasury, ASIC, and Clean Energy Regulator.
Global Market Access: Aligning with EU CSRD, US SEC climate proposals, and Asian green finance taxonomies.
Talent & Reputation: Attracting the next-gen workforce and strengthening your brand story.
The ESG reporting journey in Australia is no longer optional—it’s a defining aspect of corporate resilience, reputation, and relevance. By aligning with global frameworks and Australian regulatory developments—such as the IFRS Sustainability Disclosure Standards and the Safeguard Mechanism—companies can lead with confidence, create shared value, and contribute to a sustainable economy.
#ESG #ESG Compliance #IFRS #ASRS
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