Australia is poised to adopt sweeping new sustainability reporting standards that will change how companies approach environmental, social, and governance (ESG) practices. The Australian Sustainability Reporting Standards (ASRS) will soon require large companies and listed entities to disclose sustainability-related information, in alignment with international frameworks like those set by the International Sustainability Standards Board (ISSB). This move towards consistent, reliable, and comparable data aims to provide investors and stakeholders with a more transparent view of environmental risks and sustainability performance.
For those of us in the quarries and extractive industries, these requirements may not yet be mandatory but are likely to apply soon. Taking a proactive approach to these standards now could position our sector as a leader in sustainable practices, ensuring readiness for future obligations while building trust with communities and stakeholders.
Why is Sustainability Reporting Necessary for the Extractive Industry?
The ASRS will introduce mandatory sustainability disclosures in phases, beginning in 2025. Larger entities will be the first to comply, with smaller companies required to join by 2027. This phased approach gives businesses time to establish the climate governance systems needed to meet Scope 1, Scope 2, and Scope 3 emissions standards.
Beyond emissions, the extractive industry has broader environmental impacts to consider, particularly around biodiversity loss and ecosystem health. While the Taskforce on Nature-related Financial Disclosures (TNFD) is not yet mandated in Australia, it provides a framework for understanding and managing nature-related risks. Given rising global expectations, mining and extractive companies will likely need to address ecosystem impacts in their governance practices. Legal experts also warn that failing to manage these risks could expose directors to liability under the Corporations Act 2001 (Cth), underscoring the need for companies to bolster their nature-related risk management.
Practical Steps for Embracing Sustainability Reporting
For companies preparing for these emerging regulations, readiness and a proactive strategy are essential.
- Assess Your Current Position
Begin by assessing your sustainability practices, especially around Scope 1, 2, and 3 emissions. Knowing your current status will help you identify areas needing improvement as you prepare for ASRS compliance. - Set Commitments
Develop a strategy to reduce your carbon footprint and advance nature-positive practices. Integrate these goals into your company’s policies, risk management, and governance structures to lay a strong foundation for future reporting. - Translate Goals into Action
Move from strategy to execution by embedding sustainability commitments into daily operations. Whether your aim is net-zero emissions or meeting ASRS requirements, a clear focus on practical action will support meaningful progress. - Monitor and Report Progress
As you progress, ensure your actions are transparent and well-documented. Meeting ASRS disclosure requirements will help communicate your sustainability journey to stakeholders and highlight your proactive approach to environmental stewardship.
Adapting to these standards offers an opportunity for the quarries and extractive sector to showcase leadership in sustainable practices, positioning businesses to meet stakeholder expectations and demonstrate environmental accountability. By planning ahead, we can all contribute to a more resilient and sustainable future for the industry.