Authoritative answers about the Australian Sustainability Reporting Standards framework (specifically AASB S2). Covers climate-related financial disclosure requirements, Group 1/2/3 deadlines, Scope 1/2/3 emissions disclosures, scenario analysis, and assurance under Australia’s mandatory climate reporting regime.
The Australian Sustainability Reporting Standards framework (specifically AASB S2). Covers climate-related financial disclosure requirements, Group 1/2/3 deadlines, Scope 1/2/3 emissions disclosures, scenario analysis, and assurance under Australia's mandatory climate reporting regime.
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AASB S2 follows the structure and substance of IFRS S2 but is modified for Australian law. It stands alone without AASB S1, lets the…
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Yes, in part. AASB S2 lets an entity use a measurement method required by a jurisdictional authority, such as the NGER Scheme, instead of…
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AASB S2 assurance is phased in under ASSA 5010. In the first year the auditor reviews governance, climate-related risks and opportunities, and Scope 1…
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No. AASB S1 is a voluntary standard, and an entity can comply with AASB S2 without applying it. AASB S2 carries the general requirements…
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AASB S2 transition relief applies in the first annual reporting period in which an entity applies the standard. The entity need not disclose comparative…
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The AASB S2 cross-industry metrics are seven categories every reporting entity discloses under paragraph 29: greenhouse gas emissions, assets or activities vulnerable to transition…
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AASB S2025-1, issued in December 2025, amends AASB S2 to add and clarify relief on greenhouse gas emissions. It covers Scope 3 Category 15,…
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AASB S2 scenario analysis must be used to assess climate resilience, but the standard does not set the number of scenarios or the temperature…
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AASB S2 Climate-related Disclosures is the Australian Sustainability Reporting Standard that sets out the climate-related financial information an entity must disclose. The AASB issued…
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Modified liability limits who can take legal action over certain statements in a sustainability report. For protected statements, only ASIC can act, apart from…
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An AASB S2 sustainability report contains the climate statements for the year, any notes to those statements, and a directors' declaration. The climate statements…
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AASB S2 requires Scope 3 greenhouse gas emissions, and the categories included, from an entity's second annual reporting period under the standard. The first…
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AASB S2 reporting starts for financial years beginning on or after 1 January 2025 for Group 1, 1 July 2026 for Group 2 and…
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An AASB S2 sustainability report is lodged with ASIC as part of the annual report. Disclosing entities, registered schemes and registrable superannuation entities lodge…
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An entity must report under AASB S2 if it prepares an annual financial report under Chapter 2M of the Corporations Act 2001 and meets…
Beyond a glossary
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Book a friendly callAASB S2 Climate-related Disclosures is the Australian Sustainability Reporting Standard that sets out the climate-related financial information an entity must disclose. The AASB issued it in September 2024, based on IFRS S2, and it is mandatory for entities that must prepare a sustainability report under Chapter 2M of the Corporations Act 2001.
An entity must report under AASB S2 if it prepares an annual financial report under Chapter 2M of the Corporations Act 2001 and meets a threshold in section 292A. The thresholds cover size (two of consolidated revenue, gross assets and employees), registration under the NGER Act and, for asset owners, assets of $5 billion or more.
AASB S2 follows the structure and substance of IFRS S2 but is modified for Australian law. It stands alone without AASB S1, lets the reporting entity follow the Corporations Act, drops industry-based metrics and SASB references, and fixes the versions of documents it refers to, such as the IPCC Sixth Assessment Report.
AASB S2 assurance is phased in under ASSA 5010. In the first year the auditor reviews governance, climate-related risks and opportunities, and Scope 1 and Scope 2 emissions. In the second and third years all disclosures are reviewed. From the fourth year all disclosures are audited, which reaches every group by 1 July 2030.
Modified liability limits who can take legal action over certain statements in a sustainability report. For protected statements, only ASIC can act, apart from criminal proceedings. It covers Scope 3, scenario analysis and transition plan statements for financial years beginning in 2025 to 2027, and forward-looking climate statements for years beginning in 2025.
An AASB S2 sustainability report contains the climate statements for the year, any notes to those statements, and a directors' declaration. The climate statements carry the disclosures AASB S2 requires. Group 3 entities with no material climate-related risks or opportunities can instead state that, and explain how they reached that view.
AASB S2 reporting starts for financial years beginning on or after 1 January 2025 for Group 1, 1 July 2026 for Group 2 and 1 July 2027 for Group 3. For a 30 June year end, the first sustainability reports cover the years ending 30 June 2026, 30 June 2027 and 30 June 2028.
AASB S2 requires Scope 3 greenhouse gas emissions, and the categories included, from an entity's second annual reporting period under the standard. The first annual period is exempt under paragraph C4. Statements about Scope 3 also carry modified liability for financial years beginning between 1 January 2025 and 31 December 2027.
Yes, in part. AASB S2 lets an entity use a measurement method required by a jurisdictional authority, such as the NGER Scheme, instead of the GHG Protocol. That relief does not extend to the reporting period or the organisational boundary, so NGER totals usually need adjusting before they can be disclosed under AASB S2.
AASB S2 scenario analysis must be used to assess climate resilience, but the standard does not set the number of scenarios or the temperature outcomes. For entities reporting under the Corporations Act, the Act adds a minimum of two: a 1.5°C scenario and a scenario well exceeding 2°C above pre-industrial levels.