Group 1 entities have now lodged their first climate statements under AASB S2. Group 2 entities entered their first reporting year on 1 July 2026, and Group 3 follows from 1 July 2027. These disclosures sit in the annual report and are subject to external assurance, so selecting ASRS compliance reporting software is a financial control decision.
This guide gives Australian enterprise risk, finance and sustainability teams a practical framework for enterprise software selection in climate reporting. It covers four criteria: auditability, automation, supplier data quality and regulatory fit, followed by a simple process for running the selection.
Define your requirements before the first demo
Vendor demos are built to impress. A written requirements brief keeps the evaluation anchored to your obligations.
Start with your reporting group, your first reporting period and when Scope 3 comes into scope (from your second reporting year). Map the assurance timeline. Limited assurance applies to a subset of disclosures in the early years, stepping up to reasonable assurance across all climate disclosures for periods starting from 1 July 2030.
Then list your data sources: ERP, accounts payable, fleet, utilities, procurement and any site-level systems. Confirm who owns the process across finance and sustainability, and who signs off. If your organisation already runs risk management software, note whether climate risk data needs to flow between the two systems, since AASB S2 asks you to disclose how climate risks are identified and managed. This brief becomes your scorecard.
Auditability: can every number be traced?
Auditors will test your figures the same way they test revenue. Your software needs to show the path from source transaction to reported total without anyone rebuilding it by hand.
Ask each vendor to demonstrate:
- Drill-down from a disclosed figure to the underlying transactions
- The emission factor, source and version applied to each line
- A change log showing who changed what, and when
- A record of methodology decisions, including classifications, exclusions and any use of the "undue cost or effort" relief
- Role-based access, review and approval workflows
- Independent security certification such as SOC 2 Type II and ISO 27001
Ask for an assurance track record with Australian clients. Avarni builds the evidence trail into every calculation, and to date every client submission has cleared external assurance on the first attempt. See how it works on the audit and assurance page.
Reporting automation: how much manual work is left?
Scope 3 is usually the largest share of an enterprise footprint and the most data-heavy. A full year of accounts payable can run to hundreds of thousands of lines. Manual classification at that volume is slow, hard to repeat and a source of audit risk.
Test reporting automation on your own data. Ask how data gets into the platform, whether it accepts files of any structure, how transactions are classified and how long a full year takes to process. Ask who does the classification work. Some vendors rely on a services team working manually behind the platform, which adds cost and delays each cycle.
Also check what carries forward. Rules and mappings set up in year one should apply automatically in year two, so each cycle is faster and consistent with the last.
Avarni uses AI to automate emissions calculations across Scope 1 to 3, integrates with more than 1,000 business systems including SAP, NetSuite and Microsoft Dynamics 365, and applies factors from a library of more than 65,000 emission factors.
Supplier data quality: can you improve Scope 3 over time?
Spend-based estimates are a legitimate starting point under the GHG Protocol. Assurers and boards will expect Scope 3 accuracy to improve over time, and that depends on better supplier data.
Evaluate how each platform collects and manages supplier information:
- How requests are sent, tracked and followed up
- Whether suppliers need a paid licence to respond
- How supplier responses are validated before they enter the inventory
- Whether the platform reports data quality by category, showing the split between spend-based, activity-based and supplier-specific data
- Whether it supports hybrid methods, so primary data replaces estimates as it arrives
Proportionality matters here too. The 2026 Federal Budget signalled clearer boundaries on supplier information requests, particularly for small businesses. Targeted requests to your highest-emitting suppliers will do more for accuracy than blanket surveys. Avarni's supplier engagement tools send free data requests to suppliers and feed responses straight into the calculation.
Regulatory fit: is it built for Australia?
Many carbon platforms are built for European or US regimes and adapted for Australia later. Check how each one handles Australian regulatory compliance in detail.
The platform should align with AASB S2 and the GHG Protocol, handle the Australian financial year and apply Australian emission factors. It should align with NGER and Safeguard Mechanism reporting where they apply, and support ISSB and IFRS S2 if a global parent reports under those standards. Outputs should map to the metrics and targets disclosures in your climate statement.
AASB S2 also asks for forward-looking information, including scenario analysis and transition planning. Software that supports emissions forecasting helps finance teams model targets and test them against the business plan.
Finally, ask how the vendor tracks regulatory change. Threshold changes, assurance settings and guidance on key concepts are all under review. The platform should update without a reimplementation. Avarni is purpose-built for ASRS reporting and supports Group 1 to 3 reporters.
Run a structured evaluation
Treat this like any other enterprise software selection. A disciplined process shortens the decision and makes it easier to defend to the board.
Involve finance, risk and sustainability from the start. Each group tests different things, and shared ownership reduces key-person risk once the platform is live.
Frequently asked questions
What is ASRS compliance reporting software?
ASRS compliance reporting software helps Australian entities measure emissions and prepare climate disclosures under AASB S2. Enterprise platforms automate Scope 1 to 3 calculations, manage supplier data and keep an audit trail that supports external assurance.
What should finance teams look for in ASRS reporting software?
Finance teams should assess auditability, automation of data collection and calculations, supplier data quality and fit with Australian regulation, including AASB S2, the GHG Protocol and NGER. A pilot on real data is the most reliable test.
When should Group 2 and Group 3 entities choose a platform?
Group 2 entities are already in their first reporting year, which started 1 July 2026, so selection is urgent. Group 3 entities report from 1 July 2027 and should select and implement well before year end to capture a full year of clean data.
Summary
- Define your requirements before the first demo: A written brief covering your reporting group, Scope 3 timing, assurance phasing, data sources and links to existing risk management software keeps the evaluation focused on your obligations.
- Auditability: Every figure should trace back to source with visible factors, change logs and recorded methodology. Avarni builds this trail in, and every client submission has cleared assurance on the first attempt.
- Reporting automation: Test on your own data and confirm who does the classification. Avarni uses AI to automate Scope 1 to 3 calculations, with 1,000+ integrations and 65,000+ emission factors.
- Supplier data quality: Look for tracked, validated supplier requests and reporting on data quality by category. Avarni's supplier engagement tools send free requests and feed responses into the calculation.
- Regulatory fit: The platform should be built for Australian regulatory compliance, including AASB S2, the Australian financial year, NGER and forward-looking disclosures. Avarni is purpose-built for ASRS reporting across Group 1 to 3.
- Run a structured evaluation: Shortlist, score, pilot on real data, involve your assurer early and compare total cost. Shared ownership across finance, risk and sustainability reduces key-person risk.
Evaluating ASRS compliance reporting software? Talk to a specialist and see Avarni run on your own data.
