Australian Sustainability
Reporting Standards

Understanding the mandatory climate disclosure requirements for Australian food businesses

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A new era of climate reporting for Australian food businesses

Australia is introducing mandatory climate-related financial disclosures for a wide range of companies, marking one of the most significant shifts in corporate reporting standards in decades. The new rules aim to align Australian businesses with global best practices and provide investors, consumers, and regulators with clear insights into climate risks and emissions performance.

Who is impacted?

The new standards are rolling out in phases that began July 1, 2024. Companies will be required to report based on their size and economic significance:
  • Group 1 (from FY24-25): Large listed and unlisted entities with 500+ employees and $1B+ in assets or $500M+ in revenue
  • Group 2 (from FY26-27): Entities with 250+ employees and $500M+ in assets or $200M+ in revenue
  • Group 3 (from FY27-28): Entities with 100+ employees and $25M+ in revenue or $25M+ in assets
Companies already subject to financial reporting under the Corporations Act are most likely to fall under these new requirements.

What needs to be disclosed?

Australian companies will need to report climate-related information in accordance with the Australian Sustainability Reporting Standards (ASRS) developed by the Australian Accounting Standards Board (AASB). These are aligned with the ISSB’s global standards (IFRS S1 and S2) and include:
  • Governance of climate-related risks and opportunities
  • Climate strategy and risk management processes
  • Scenario analysis and transition planning
  • Scope 1, 2, and (eventually) 3 emissions reporting
  • Climate targets and metrics, including any carbon offsets used
  • Financial impacts of climate-related risks and opportunities
Assurance requirements will be phased in, with limited assurance initially, moving to reasonable assurance over time.

What are the penalties for non-compliance?

Climate disclosures will be subject to the same legal and enforcement mechanisms as financial disclosures under the Corporations Act, including civil penalties for misleading or incomplete information. ASIC (Australian Securities and Investments Commission) has urged companies to act now to prepare.

How to prepare

  • ESTABLISH GOVERNANCE
    ‍    Ensure board oversight and assign clear climate-related responsibilities
  • START SCENARIO PLANNING
    ‍    Use climate models to assess physical and transition risks
  • COLLECT EMISSIONS DATA
    ‍    Develop systems for reliable Scope 1, 2, and (where applicable) Scope 3 tracking
  • ENGAGE EXPERTS
    ‍    Consider partnerships with sustainability data providers or consultants to support readiness
  • ALIGN WITH ISSB FRAMEWORKS
    ‍    Familiarize your team with IFRS S1 and S2 requirements

How HowGood can help

HowGood’s Latis platform supports suppliers and brands with:
  • Verified product-level emissions and water footprints
  • Scenario planning tools to evaluate decarbonization options
  • Supplier engagement infrastructure to streamline Scope 3 data collection
  • Easy-to-access dashboards for tracking and communicating progress
By helping your team prepare for regulatory disclosures while also supporting decarbonization strategies, HowGood bridges the gap between compliance and climate action.