AASB S2 Climate-related Disclosures is the Australian standard that sets out what an entity must disclose about the climate-related risks and opportunities that could reasonably be expected to affect its cash flows, access to finance or cost of capital over the short, medium or long term. The Australian Accounting Standards Board (AASB) issued AASB S2 on 20 September 2024.
Key points
- Issued by the AASB on 20 September 2024 and based on IFRS S2
- Mandatory for entities that must prepare a sustainability report under Chapter 2M of the Corporations Act 2001
- Four core content areas: governance, strategy, risk management, and metrics and targets
- Requires Scope 1, Scope 2 and Scope 3 greenhouse gas emissions and climate-related scenario analysis
- Does not require industry-based metrics
- Amended by AASB S2025-1 (December 2025) for annual periods beginning on or after 1 January 2027
What AASB S2 requires
Disclosures are organised under four core content areas.
| Core content | What must be disclosed | Paragraphs |
|---|---|---|
| Governance | The governance body and management processes used to monitor, manage and oversee climate-related risks and opportunities | 5 to Aus7.1 |
| Strategy | Climate-related risks and opportunities, their effects on the business model, value chain, strategy, financial position, performance and cash flows, any transition plan, and climate resilience assessed through scenario analysis | 8 to Aus23.1 |
| Risk management | The processes used to identify, assess, prioritise and monitor climate-related risks and opportunities | 24 to Aus26.1 |
| Metrics and targets | The seven cross-industry metric categories, including Scope 1, Scope 2 and Scope 3 greenhouse gas emissions, and progress against climate-related targets | 27 to 37 |
Who must apply AASB S2
AASB S2 is mandatory for entities that must prepare a sustainability report under Chapter 2M of the Corporations Act 2001. Reporting is phased in across three groups, starting with financial years beginning on or after 1 January 2025. Other entities may apply AASB S2 voluntarily, but must meet all of its requirements to claim compliance.
How AASB S2 relates to IFRS S2 and AASB S1
AASB S2 is based on IFRS S2, issued by the International Sustainability Standards Board (ISSB), and modified for Australian law. It stands alone. Appendix D carries across the general requirements from AASB S1 that are needed to apply it, so AASB S1 remains voluntary. Unlike IFRS S2, AASB S2 does not require industry-based metrics.
Amendments to AASB S2
AASB S2 has been amended once since it was issued. The amendments are listed in the order they were made.
| Date | Pronouncement | Effect |
|---|---|---|
| 20 September 2024 | AASB S2 Climate-related Disclosures issued | Applies to annual reporting periods beginning on or after 1 January 2025 |
| December 2025 | AASB S2025-1 Amendments to Greenhouse Gas Emissions Disclosures | Adds and clarifies relief for Scope 3 Category 15, industry classification of financed emissions, and jurisdictional relief for measurement methods and global warming potential values. Applies to annual reporting periods beginning on or after 1 January 2027, with earlier application permitted |
The AASB publishes a compiled version of AASB S2 that incorporates AASB S2025-1. Each reporting period should be assessed against the version that applies to it.
References & sources
Primary regulatory documents and authoritative references underpinning this answer.