HOW TO GET READY FOR ASRS - AUSTRALIA

KNOW WHAT TO REPORT.

If your organisation meets ASRS criteria, you will be required to lodge climate-related financial disclosures as a standalone ‘sustainability report’ alongside annual financial reports. If you have not gathered or reported this information before, or have done so under voluntary or flexible reporting arrangements, you likely have significant work ahead of you to prepare.

It is anticipated that a ‘sustainability report’ will contain the following

• The climate statement for the year: ο Material climate-related financial risks and opportunities ο Metrics and targets covering scope 1, 2 and 3 emissions ο Governance and risk management processes, controls and procedures • Notes to the climate statement • Any statements prescribed by the regulations for the year • Under the draft ASRS, report content is to be audited before lodgement • The directors’ declaration that statements are compliant Under the ASRS framework, reporting will be organised around the four key pillars and broadly focus on:

Governance Disclosures on the processes, controls and procedures used to monitor and manage climate-related risks and opportunities.

Strategy Disclosures on the strategy to address climate risks and opportunities, including impacts on modelling and planning.

Risk Management Disclosures on material climate related risks and opportunities and how these are integrated into the broader risk management strategy.

Metrics and Targets Disclosures of scope 1, 2, and 3 emissions using methods under the NGERS or other international standards. Includes quantitative and qualitative climate-related targets.

It is typically time- and resource-intensive to capture and analyse climate-related risks and opportunities. Understanding the financial impacts on your business adds another layer of complexity. That’s why starting early and building robust governance foundations is important.