Free resources
ASRS Compliance Risk Calculator
Misha Cajic
July 11, 2025
/
5
min read
Mandatory climate disclosure is now a reality for Australian businesses, with the Australian Sustainability Reporting Standards (ASRS) entering phased implementation from FY2025. Companies that fail to prepare face not only reputational damage, but also significant financial penalties for non-compliance and greenwashing.
To help businesses understand their risk exposure, we’ve launched the ASRS Compliance Risk Calculator, a free tool that estimates your organisation’s likely reporting group, compliance timeframe, and potential penalty exposure under AASB S2.
It quickly gives you a realistic view of what’s at stake, using just four data points.
The ASRS, issued by the AASB and based on international ISSB standards, will require eligible Australian entities to report climate-related financial risks and Scope 1, 2, and (eventually) Scope 3 emissions. The rollout will take place in stages across three groups, starting with the largest entities in FY2025.
But this isn’t just another box-ticking exercise. ASRS introduces a legal requirement for climate disclosures to meet assurance standards. That means penalties apply for materially misleading statements, omissions, or delays - especially where greenwashing is concerned.
Organisations that understate emissions, overstate climate targets, or make vague net-zero claims without credible data may face serious consequences under the Australian Consumer Law, Corporations Act, or ASIC guidelines.
Understanding what group you fall into and what your penalty exposure looks like is a critical first step toward planning your response.
The Avarni ASRS Compliance Risk Calculator helps you quickly assess your company’s exposure to these new compliance requirements. You input four figures:
Based on this, the calculator determines which reporting group your business falls into, based on thresholds set by the AASB — Group 1, 2, or 3. It also calculates your estimated ASRS reporting completion date (i.e. when you are expected to be ready to report) and provides an estimate of your potential financial penalty risk if your completion date falls after the reporting deadline.
This will give you a clear picture of:
This is especially helpful for finance, risk and sustainability teams that need to build internal awareness or make the case for budget and resourcing.
Many companies still assume ASRS is just a sustainability issue — it’s not. It’s a financial reporting requirement with cross-functional implications, particularly for risk, audit and governance teams. Climate disclosures will need to meet the same standards as financial statements, and directors may be held accountable for misleading or incomplete reports.
The ASRS Compliance Risk Calculator bridges that awareness gap. By quantifying the potential penalty exposure tied to your business size, it reframes climate disclosure as a risk and compliance issue, not just a reporting obligation. This helps internal stakeholders — especially CFOs, general counsel, and directors — understand why early action is necessary.
It also gives you a solid jumping-off point for discussions around assurance, emissions data strategy, and readiness planning.
You can use the calculator in less than a minute. Just enter your gross assets, revenue, headcount and preparation start date. You’ll instantly see your reporting group, start date, and an estimate of financial risk tied to non-compliance.
Once you’ve got your results, use them to kick off internal conversations about ASRS preparedness. Are you on track to report in FY25 or FY26? Have you started calculating Scope 1, 2, and 3 emissions? Do you have processes in place for reasonable assurance? If your exposure is in the millions, it’s time to act.
Try the ASRS Compliance Risk Calculator now at risk-calculator.avarni.co. When you're ready to take the next step, get in touch to learn how Avarni can help you navigate AASB S2, meet your reporting obligations, and reduce your financial risk.
