Sustainability reporting is here: Why your businesses must act now

The introduction of Australian Sustainability and Reporting Standards (ASRS) marks a significant shift in how businesses in Australia approach climate risk and sustainability, with mandatory requirements for specific companies having come into effect on 1st January 2025.

What is ASRS reporting?

The ASRS reporting framework, introduced by the Australian government, has been designed to:

• Mandate reporting of climate risks and opportunities for certain-sized companies.

• Encourage businesses to adopt transparent and accountable practices in sustainability.

• Align Australia with global sustainability standards.

Who needs to report?

Group 1 companies, which fall under the scope of the ASRS requirements, will be the first to report. Their reporting period began immediately after 1st January 2025.

How long does it take to prepare?

• It takes 12 to 18 months to fully prepare for ASRS reporting.

• Another 6 to 12 months is typically needed to implement the required reporting processes.

If your business hasn’t yet started, the time to act is now.

Why preparation is key

ASRS reporting is not just a compliance exercise — it’s a catalyst for better business practices. However, preparation is critical for success. Here’s why:

Understand your position
Climate risks and opportunities vary across industries and individual organisations. Conducting an initial assessment allows you to:

• Identify areas of strength and weakness in your sustainability approach.

• Tailor your reporting processes to align with your business operations.

Time is limited
With the reporting deadline in place, organisations need to:

• Build the necessary infrastructure for data collection and analysis.

• Train internal teams or engage external expertise to meet compliance standards.

Strategic opportunities
ASRS reporting is not just about meeting obligations. It’s an opportunity to:

• Build stakeholder trust through transparency.

• Showcase your commitment to environmental, social, and governance (ESG) principles.

• Position your business as a leader in sustainable practices.

“Early action enables businesses to future-proof themselves, turning compliance into competitive advantage.”
Shane Cross

Lessons from Early Adopters

PKF Parvate Sustainability been working closely with Group 1 clients, many of whom are already well into their preparation phase. A few key takeaways from their experiences include:

• Start early: The earlier you begin, the more time you have to address gaps and optimise processes.

• Engage your team: Sustainability reporting involves multiple departments — from finance to operations. Collaboration is key.

• Leverage expertise: Seek guidance from experienced professionals.

By taking these steps, businesses can avoid last-minute stress and ensure a smooth transition to ASRS compliance.

The business case for ASRS compliance

While the reporting requirements may initially appear as a challenge, they come with significant benefits for forward-thinking organisations:

• Enhanced reputation: Demonstrating a commitment to sustainability enhances your credibility with investors, customers, and employees.

• Risk mitigation: Identifying climate risks allows businesses to develop strategies to reduce exposure and build resilience.

• Global alignment: With many international markets adopting similar frameworks, ASRS compliance positions Australian companies to compete globally.

• Operational efficiency: Sustainability often drives innovation, leading to cost savings and improved resource management.

Your next steps

If your business falls under Group 1 of the ASRS reporting framework, here’s what you should do now:

1. Assess your readiness:

• Have you conducted an audit of your current climate reporting practices?

• Do you have the right systems and processes in place to collect and analyse data?

2. Develop a plan:

• Outline the steps needed to achieve compliance, including timelines and resources.

• Identify gaps and areas for improvement.

3. Seek expert guidance:

• We have extensive experience helping businesses navigate sustainability reporting requirements. Whether you need support in preparing for ASRS or implementing best practices, we’re here to help.

“Don’t let the deadline catch you unprepared — start now to turn compliance into a strategic advantage.”
Jim Allenby