What do businesses need to report on under ASRS?

Under the new ASRS, businesses report on four core areas – Governance, Strategy, Risk Management, and Metrics & Targets. A detailed table of the voluntary and mandatory reporting requirements follows;

ASRS S1 – Sustainability-related Disclosures (Voluntary)

CategoryReporting Requirements
Conceptual FoundationsDisclose material information fairly; ensure consistency with financial statements and present information clearly and cohesively.
Core ContentGovernance: Disclose, processes, controls, and procedures for managing sustainability-related risks and opportunities (SROs).
Strategy: Describe the approach to managing SROs.
Risk Management: Disclose processes for how SROs are identified, evaluated, and monitored.
Metrics & Targets: Report performance and progress toward sustainability objectives or legal obligations.
General RequirementsInclude references used, where and when disclosures are made, comparative data, and a declaration of adherence to the standard.
Judgements, Uncertainties & ErrorsDisclose information about judgements made in preparing sustainability-related financial disclosures and significant measurement uncertainties affecting reported figures. Where an error was made in prior periods, correct it by restating the figures.

ASRS S2 – Climate-related Disclosures (Mandatory)

CategoryReporting Requirements
GovernanceDescribe the systems and controls in place for managing climate-related financial risks and opportunities.
StrategyDetail climate-related risks and opportunities, and their impacts on business operations and financial outcomes, and include scenario planning and transition strategies.
Risk ManagementExplain how climate risks are identified, assessed, and integrated into broader business risk frameworks.
Metrics & TargetsReport climate-related indicators (e.g., Scope 1 & 2 emissions from the start; material Scope 3 emissions from year two) and any climate targets established.