AASB S2 transition relief is set out in Appendix C and applies to the first annual reporting period in which an entity applies the standard. The date of initial application is the start of that period (paragraph C2).
Key points
- Applies to the first annual reporting period of applying AASB S2
- No comparatives required in the first year (C3)
- A non-GHG Protocol method used the year before may continue (C4(a))
- Scope 3, including financed emissions, not required in the first year (C4(b))
- Reliefs can carry through to comparatives in later reports (C5)
- All other requirements, including Scope 1 and Scope 2, apply from the first year
The first-year reliefs
| Relief | What it allows | Paragraph |
|---|---|---|
| Comparative information | No disclosures are required for any period before the date of initial application, so no comparatives are needed in the first year | C3 |
| Measurement method | If the entity measured greenhouse gas emissions with a method other than the GHG Protocol Corporate Standard in the year before initial application, it may continue using that method | C4(a) |
| Scope 3 emissions | No need to disclose Scope 3 greenhouse gas emissions, including financed emissions | C4(b) |
| Comparatives in later years | An entity that used C4(a) or C4(b) may keep using that relief when presenting the same information as a comparative in later reports | C5 |
What the relief does not cover
The relief does not defer any other requirement. Governance, strategy, climate resilience and scenario analysis, risk management, Scope 1 and Scope 2 emissions and the other cross-industry metrics are all required in the first year. From the second annual reporting period, Scope 3 emissions must be disclosed for the current period.
Relief from the AASB S2025-1 amendments
AASB S2025-1 applies to annual periods beginning on or after 1 January 2027. An entity can apply it earlier and must disclose that it has done so. It adds lasting relief rather than first-year relief: a narrower Category 15 measurement limited to financed emissions, flexibility in industry classification for financed emissions, and jurisdictional relief for required global warming potential values.
Related Corporations Act settings
Separate from AASB S2, the Corporations Act phases in assurance, gives modified liability to certain statements for financial years beginning between 1 January 2025 and 31 December 2027, and lets directors declare that reasonable steps were taken to comply during the same window.
Why it matters for asset-intensive operations
The first year buys time for Scope 3 but not for Scope 1 and Scope 2, which the auditor reviews from the start. The best use of the first year is to put the Scope 3 data model and supplier data requests in place, so the second report does not become a scramble.
References & sources
Primary regulatory documents and authoritative references underpinning this answer.