In response to global calls for greater transparency in environmental, social, and governance (ESG) factors, the AASB has introduced new sustainability reporting standards (AASB S1 and AASB S2) in September 2024 in conjunction with IFRS. These new regulations are designed to help businesses more clearly report their sustainability practices, especially related to climate-related risks, carbon footprints, and broader environmental, social, and governance (ESG) criteria.
Key Changes Under the AASB Sustainability Standards:
- Alignment with Global Standards: The AASB has aligned its reporting standards with global frameworks such as the TCFD (Task Force on Climate-related Financial Disclosures), the GRI (Global Reporting Initiative), and SASB (Sustainability Accounting Standards Board).
- Expanded Reporting Requirements: The new AASB standards mandate a more comprehensive and detailed approach to ESG reporting. This includes specific requirements related to climate-related risks, carbon emissions, energy consumption, and broader sustainability practices.
- Materiality and Transparency: Companies must report information on sustainability that is material to their operations, ensuring businesses provide relevant and transparent data on their environmental and social impact.
Why the AASB Sustainability Standards Matter:
- Investor Confidence: Providing transparent and reliable ESG data builds investor trust.
- Compliance: Helps businesses stay compliant with evolving regulations.
- Reputation and Brand Value: Demonstrates a company’s commitment to sustainability, enhancing its public image.
How TSNL Can Help
We help you align your business practices with AASB S1 and AASB S2 new standards, ensuring comprehensive and transparent reporting aligning best practices.
