AASB S1: General Sustainability Disclosure Requirements
AASB S1 provides a voluntary framework for disclosing sustainability-related financial information. It applies to annual reporting periods starting January 1, 2025, and aligns with international IFRS S1 standards while remaining Australia-specific.
Effective from: 1 January 2025
Overview
AASB S1 establishes general requirements for disclosing sustainability-related financial information beyond climate. While voluntary, it provides comprehensive guidance for entities seeking to report on broader sustainability matters. Entities may elect to apply AASB S1; full compliance requires applying all paragraphs of the standard. The framework focuses on information that is useful to primary users—investors, lenders, and creditors—in making resource allocation decisions. Importantly, AASB S1 provides guidance that can be referenced when applying mandatory AASB S2 climate disclosure requirements.
Key Points
- Voluntary application for Australian entities
- Broader sustainability scope beyond climate
- Aligned with international IFRS S1 standards
- Provides guidance for AASB S2 compliance
- Focus on investor decision-useful information
Disclosure Pillars
Key areas of disclosure required under AASB S1
Governance
Leadership accountability structures for oversight of sustainability-related risks and opportunities across the organisation.
- Board and committee oversight responsibilities
- Management accountability and delegations
- Integration with existing governance frameworks
Strategy
Integration of sustainability risks and opportunities into business models, strategic planning, and financial forecasting.
- Business model implications
- Strategic planning integration
- Resource allocation decisions
Risk Management
Processes for identifying, assessing, prioritising, and monitoring sustainability-related risks across the enterprise.
- Risk identification processes
- Assessment methodologies
- Integration with enterprise risk management
Metrics and Targets
Performance measurement and progress tracking against sustainability-related goals and commitments.
- Key performance indicators
- Target-setting frameworks
- Progress monitoring and reporting
Who Must Report
AASB S1 is voluntary. Entities may choose to apply the standard to provide stakeholders with comprehensive sustainability information beyond mandatory climate disclosures.
Entities Included
- Listed companies seeking enhanced disclosure
- Large private companies with stakeholder interest
- Financial institutions with ESG commitments
- Public sector entities with sustainability mandates
- Any entity seeking comprehensive sustainability reporting
Key Benefits
Why organisations choose to comply with AASB S1
Comprehensive Framework
AASB S1 provides a structured approach to sustainability disclosure beyond climate-only requirements.
AASB S2 Guidance
Reference AASB S1 for guidance when applying mandatory climate disclosure requirements under AASB S2.
International Alignment
Consistent with IFRS S1, facilitating comparison with global peers and cross-border reporting.
Stakeholder Value
Provides investors and stakeholders with decision-useful sustainability information.
Future Readiness
Prepares organisations for potential expansion of mandatory sustainability reporting requirements.
Key Stakeholders & Institutions
AASB
Develops and maintains Australian Sustainability Reporting Standards
ISSB
International Sustainability Standards Board - developed IFRS S1 baseline
SASB
Provides industry-specific disclosure topics referenced by AASB S1
Primary Users
Investors, lenders, and creditors making resource allocation decisions
Frequently Asked Questions
Common questions about AASB S1 compliance
Key Terminology
Primary Users
Existing and potential investors, lenders, and creditors who make resource allocation decisions.
Material Information
Information that could reasonably be expected to influence user decisions if omitted, misstated, or obscured.
Value Chain
The full range of interactions, resources, relationships, and activities across the entity's business model.
Sustainability-related Risks
Conditions or circumstances that may negatively affect an entity's prospects, including financial position and performance.
Sustainability-related Opportunities
Conditions or circumstances that may positively affect an entity's prospects through sustainability-related activities.
General Purpose Financial Reports
Reports designed to meet the common information needs of primary users who cannot require specific information.
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