The Australian Sustainability Reporting Standards are Here, Get Prepared Now

We’ve officially crossed into 2025—and that means Australia’s mandatory climate-related financial disclosures are now in effect for large businesses and financial institutions (Group 1 reporting entities*). Although robust climate reporting is becoming a mandate for some, it offers value creation opportunities for all. Early preparation and alignment with these frameworks—whether driven by compliance or voluntary action—positions businesses to stay ahead, strengthen resilience, enhance reputation and build trust.

The Australian Sustainability Reporting Standards’ (ASRS) Australian Accounting Standards Board (AASB) S1 and S2 standards fundamentally differ—the former is voluntary, and the latter is mandatory for certain entities under the Corporations Act 2001. S1 covers broad sustainability-related disclosures while S2 covers climate-related disclosures.

Both standards, with the right guidance, can act as a powerful driver of innovation and strategic decision-making, enabling businesses to:

• Effectively manage risks and identify opportunities including physical and transition climate-related risks and environmental, social and governance opportunities.
• Enhance stakeholder trust and confidence by transparently disclosing targets and metrics, demonstrating a forward-looking approach to stand against future uncertainties.
• Establish a long-term strategy and build resilience by embedding climate and sustainability considerations into core decision-making to uncover cost savings, innovation avenues, and strategic differentiation that might otherwise go unnoticed.

While the mandatory AASB S2 is commanding the spotlight, it may feel intuitive to set the voluntary AASB S1 aside. But in truth, what might seem like an optional extra could be a strategic asset for your business. Embracing the broader scope of sustainability risks and opportunities enables organisations to target the most material environmental, social, and governance issues.

We understand that each business has unique challenges and priorities—some driven by immediate compliance, others by proactive ESG leadership. In either case, our commitment is to help you navigate these journeys in a way that develops internal capabilities, elevates stakeholder trust, and safeguards your long-term business resilience.

With our extensive experience in sustainability and climate risk management, Cress is perfectly positioned to help you navigate the new standards with an approach that not only meets today’s requirements but guides you to become a trusted sustainability leader in tomorrow’s market. Contact Cress Consulting to learn how we can support your business in robust, future-ready reporting.

*Reporting is being phased based on the criteria in the table below:

Mandatory climate-related financial disclosures; Australian Government, The Treasury, n.d., Click Here.

About the Hydroflux Group

The Hydroflux Group aims to deliver the highest level of engineering and scientific know-how to the emerging issues of sustainability, climate adaptation and environmental protection with a specific focus on water and wastewater.

As part of its vision and mission, Hydroflux has always taken its climate responsibility seriously. In 2022, Hydroflux became Australia’s first water treatment and technology company to achieve Climate Active carbon neutral certification for its organisation and products. It knows that partnering with customers and clients is the most significant impact it can have in its journey. The Group employs over 100 staff and operates throughout Australia, New Zealand and the Pacific Islands, with office locations in Sydney, Melbourne, Brisbane, Perth, Auckland, Suva and Portsmouth.