There are dozens of ESG frameworks. In Australia, only one is mandatory. This guide shows you which ESG reporting frameworks apply to your business, which are voluntary, and how to choose the right combination for your stakeholders.
Key Takeaways
- ESG frameworks define your structure, while ESG standards provide the precise metrics you need to report.
- ASRS and AASB S2 are mandatory for in-scope Australian firms, while other frameworks like GRI remain voluntary.
- You should choose your voluntary frameworks based on your specific stakeholders and what they need to see.
- The most effective strategy is to anchor your reporting with ASRS and use voluntary frameworks to fill specific knowledge gaps.
What is the difference between an ESG framework and an ESG standard?
An ESG framework defines the broad topics you need to address and how your reporting should be structured. It tells you the “what” and the “why” of your ESG strategy.
A standard is much more prescriptive. It defines the exact metrics, methodologies, and disclosure formats you must follow. It tells you the “how” and the “how much.”
In practice, high-performing businesses use both. The framework shapes your structure, while the standard ensures your data is rigorous and comparable across the market.
Which ESG frameworks and standards apply in Australia?
The Australian market has consolidated around a few key players. ASRS is the only mandatory baseline for in-scope entities, but voluntary frameworks often play a role in satisfying your investors or clients.
| Framework / Standard | Focus Area | Mandatory in Australia | Best Suited For |
|---|---|---|---|
| ASRS / AASB S2 | Climate-related risk | Mandatory | In-scope Australian entities |
| GRI | Broad sustainability | Voluntary | Community and employee audiences |
| TCFD | Climate risk structure | Voluntary | Global investors |
| IFRS S1 / S2 | Global sustainability | Voluntary | International capital markets |
| SASB | Industry-specific data | Voluntary | Institutional investor audiences |
| CDP | Environmental performance | Voluntary | Supply chain partners and investors |
Most large Australian businesses report against more than one framework at the same time. An effective ESG strategy framework uses ASRS as your mandatory anchor.
What does each major ESG framework require?
This summary helps you understand the practical demands of each standard.
- ASRS / AASB S2: This requires a full climate risk assessment including governance, strategy, and scenario analysis. It demands disclosure of Scope 1 and 2 emissions, with Scope 3 requirements phased in for later periods.
- GRI: This focuses on your impact on the world, including human rights and community engagement. It is the most common standard used for broad sustainability reporting in Australia.
- TCFD: Many organisations continue to use its four-pillar structure, and its logic is embedded in the architecture of ASRS.
- SASB: This standard is used to provide financial-grade metrics tailored to specific industries. It helps businesses report on the risks that matter most to their particular sub-sector.
- CDP: This platform requires detailed environmental data, particularly on water and forests. It is often a reporting requirement for supply chain partners or large institutional investors.
Which ESG framework is right for your business?
Choosing the right ESG framework depends on your ASRS obligations, your primary stakeholders, and your industry.
| Your Situation | Primary Framework | Why |
| In-scope for ASRS | ASRS / AASB S2 | Compliance is your legal baseline. |
| Supply chain partner to Group 1 | ASRS / GRI | You need ASRS-aligned metrics to win big tenders. |
| Property or asset-heavy | ASRS / GRESB | You need technical resilience data for institutional landlords. |
| Professional services | ASRS / GRI | You need to prove board-level governance and social impact. |
The right framework becomes clear once you know your obligations and your audience. Our ASRS Climate Reporting and Compliance service helps Australian businesses move from
framework confusion to audit-ready disclosure, with the technical depth to satisfy regulators and lenders alike.
Two practical starting points:
Take the free Climate Readiness Assessment – See where your business stands across all four AASB S2 pillars
Book a free discovery call – We’ll review your current framework and map exactly what needs to happen to meet your ASRS obligations
Frequently Asked Questions
The GRI framework is currently the most widely used for voluntary reporting. However, the ASRS framework is rapidly becoming the most important standard as it is mandatory for large Australian businesses.
Mandatory climate reporting under ASRS is now a legal duty for large Australian companies. Even if you aren’t legally mandated, major clients and banks now expect this data to satisfy their own supply chain requirements.
GRI is a voluntary standard focused on your broader impact on society and the environment. ASRS is a mandatory Australian law focused on climate-related financial disclosures that affect your cash flow and asset values.
You don’t need to follow a formal framework by law if you are a smaller business. However, your largest corporate clients will increasingly require ESG data to satisfy their own Scope 3 reporting obligations.
An ESG framework provides the broad map and structure for your reporting. An ESG standard provides the precise metrics and data methodologies you must use to be audit-ready.
