AASB S1 (voluntary) and AASB S2 (mandatory) – Australian Sustainability Reporting Standards

Australia's mandatory national reporting framework for greenhouse gas emissions and energy production/consumption by large emitters. Underpins Australia's National Greenhouse Accounts and UNFCCC reporting.

Enforcement

Mandatory

Effective date

In effect since 2008. Annual reports due 31 October each year.

Covered entities

Australian corporations meeting facility or corporate-group emissions/energy thresholds. ~900 entities currently report.

The Act sets up a national voluntary market for biodiversity certificates, with each certificate carrying standardised information on the area, project type, threatened species and duration of the work. Participants must follow biodiversity integrity standards and notify the regulator of significant reversals.

Enforcement

Voluntary participation, mandatory rules for participants

Effective date

15 December 2023

Covered entities

Landholders, Indigenous land managers and proponents who choose to register biodiversity projects and issue Biodiversity Certificates; buyers in the voluntary market

INFO 271 sets out nine questions issuers should ask before making sustainability claims, covering labelling, terminology, investment screens and ongoing monitoring. ASIC enforces against breaches under the existing prohibitions on misleading or deceptive conduct in the Corporations Act and ASIC Act.

Enforcement

Guidance (interpreting binding misleading-conduct rules in the Corporations Act 2001 and ASIC Act 2001)

Effective date

June 2022

Covered entities

Responsible entities of managed funds, corporate directors of CCIVs, and trustees of registrable superannuation entities offering or promoting sustainability-related products; principles also relevant to other issuers

The guide sets out eight principles for trustworthy environmental claims, including accuracy, evidence, life-cycle thinking, fair comparisons, plain language and transparency about transition plans. Breaches are pursued under the Australian Consumer Law's prohibitions on misleading and deceptive conduct.

Enforcement

Guidance (interpreting the binding Australian Consumer Law)

Effective date

12 December 2023

Covered entities

All businesses making environmental or sustainability claims about goods and services to Australian consumers

Reporting entities must submit an annual modern slavery statement covering seven mandatory criteria (structure, operations, supply chains, risks, actions, effectiveness, and consultation), approved by the principal governing body and signed by a responsible member, within six months of financial year end. Statements are published on the Modern Slavery Statements Register administered by Home Affairs (now Attorney-General's Department).

Enforcement

Mandatory

Effective date

1 January 2019

Covered entities

Entities based or operating in Australia with consolidated annual revenue of at least AUD 100 million, plus the Commonwealth of Australia and Commonwealth corporate entities meeting the threshold. Other entities may report voluntarily.

The UK government has endorsed IFRS S1 and S2 as UK SRS S1 and S2 for voluntary use. The FCA is consulting on listing rules that would make UK SRS S2 mandatory for listed issuers, with Scope 3 and non-climate sustainability on a comply-or-explain basis.

Enforcement

Voluntary at publication. FCA proposes mandatory UK SRS S2 for listed issuers (Scope 3 and broader sustainability on comply-or-explain).

Effective date

TBD pending FCA listing-rule outcome

Covered entities

Any UK entity (voluntary). FCA proposal targets in-scope listed issuers.