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Free AASB S2 Supplier Emissions Performance Scorecard
Misha Cajic
May 1, 2025
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3
min read
The new Australian Sustainability Reporting Standards (ASRS), and particularly AASB S2 on climate-related financial disclosures, have raised the bar for how companies measure, manage, and disclose supply chain emissions. With Scope 3 data under greater scrutiny, procurement teams need a structured way to evaluate supplier emissions performance — not just gather data.
To help companies meet these new expectations, Avarni has created the Supplier Emissions Performance Scorecard, a free tool designed to strengthen supplier assessments and support compliance with AASB S2 requirements.
AASB S2, based on the ISSB’s IFRS S2 standard, requires companies to disclose material Scope 3 emissions and explain how climate risks and opportunities in the supply chain are managed. This demands a deeper understanding of supplier practices, not just carbon figures.
Procurement teams must show that they are actively engaging suppliers, assessing climate governance, and managing transition and physical risks throughout their value chains. The Supplier Emissions Performance Scorecard offers a structured approach to doing exactly that — making it easier to collect, verify, and communicate supplier-related disclosures.
The Scorecard organises supplier evaluation into six critical categories that align well with the pillars of AASB S2:
Core results focus on actual emissions reductions across Scopes 1, 2, and 3, along with renewable energy usage. This supports disclosures on emissions outcomes and transition risk management.
Strategy evaluates suppliers' emissions reduction plans, interim targets, and employee engagement, providing evidence of transition planning and climate integration.
Governance assesses the role of climate oversight at the supplier's board and executive levels, helping companies disclose governance structures in their supply chains.
Metrics & targets reviews how suppliers are tracking emissions and setting targets consistent with 1.5°C pathways — key to demonstrating alignment with climate goals under AASB S2.
Risk management examines suppliers’ processes for identifying and mitigating climate risks, supporting the disclosure of climate risk assessments across the value chain.
Innovation & collaboration evaluates how suppliers are investing in low-carbon solutions and working with their own supply chain partners, enhancing resilience and transition capabilities.
Each category is paired with a clear 5-point scoring system, enabling teams to benchmark suppliers, track improvements, and substantiate climate-related claims for reporting purposes.
To maximise the Scorecard's value for AASB S2 and broader ASRS reporting, teams should:
Tailor relevance to materiality: Focus assessments on suppliers and categories that are material to your emissions footprint and climate risk exposure, as per your materiality assessment.
Set up verification mechanisms: Verified supplier data strengthens your disclosures. Plan for audits, third-party assurance, or supporting documentation where possible.
Support supplier readiness: Recognise that smaller suppliers may not yet have robust emissions tracking in place. Phased onboarding or capacity-building initiatives can help bring more suppliers up to standard without delaying disclosures.
Integrate into risk management: Use Scorecard results to identify high-risk suppliers for targeted engagement or contract adjustments, aligning procurement strategies with transition and physical risk management plans.
The Supplier Emissions Performance Scorecard uses a 5-point rating system:
This simple, consistent framework makes it easier to aggregate supplier insights for disclosure and track progress over time — two critical needs under the ASRS.
