AASB S2 vs IFRS S2 is a question of adaptation, not substance. The AASB incorporated IFRS S2, including its paragraph numbering, and modified it for the Australian legal and institutional environment. Australian-specific paragraphs carry an Aus prefix.
Key points
- AASB S2 keeps IFRS S2 paragraph numbering and adds Aus-prefixed paragraphs
- Stands alone through Appendix D, so AASB S1 is voluntary
- Reporting entity follows the Corporations Act, including the parent entity choice in section 292A(2)
- Industry-based metrics and SASB references removed
- Referenced documents fixed to specific versions, such as the IPCC Sixth Assessment Report
The main differences
| Topic | IFRS S2 | AASB S2 |
|---|---|---|
| Link to the general standard | Applied together with IFRS S1 | Stands alone. Appendix D brings in the IFRS S1 requirements needed for climate reporting, so AASB S1 stays voluntary |
| Reporting entity | Same as the related financial statements | Same as the related financial statements unless otherwise permitted by law, reflecting the parent entity choice in section 292A(2) of the Corporations Act |
| Industry-based metrics | Required, with reference to the ISSB industry-based guidance | Not required. No need to refer to or consider the SASB Standards |
| Cross-industry metrics | Required | Required, and also referred to when preparing strategy disclosures and setting targets (Aus23.1 and Aus37.1) |
| Referenced documents | Latest versions | Fixed versions, such as the Paris Agreement of December 2015 and the IPCC Sixth Assessment Report (AusB22.1) |
| Not-for-profit entities | No specific guidance | Use the AASB Framework definitions of general purpose financial reports and primary users (AusA1) |
What Appendix D adds
Because AASB S2 does not rely on AASB S1, Appendix D carries the general requirements that climate reporting needs: the conceptual foundations such as materiality and fair presentation, where and when to report, judgements, measurement uncertainty and errors.
What stays the same
The four core content areas, climate-related scenario analysis, Scope 1, Scope 2 and Scope 3 greenhouse gas emissions and the seven cross-industry metric categories are the same in both standards. Both have been amended in the same way to give relief on greenhouse gas emissions, through AASB S2025-1 in Australia.
What sits outside AASB S2
Some Australian requirements come from the Corporations Act rather than the standard, including who must report, the two mandatory temperature scenarios, modified liability and assurance.
Why it matters for groups reporting internationally
A group that also reports to investors under IFRS S2, or in another jurisdiction that adopts it, should map the omitted requirements, particularly industry-based metrics, and decide whether to disclose them voluntarily.
References & sources
Primary regulatory documents and authoritative references underpinning this answer.