AASB S2 Reporting Services - Climate Disclosure Australia

Yes. AASB S2 climate reporting is mandatory for certain entities under the Corporations Act 2001. The requirements are being phased in based on organisational size and reporting classification.

Entities captured under Chapter 2M of the Corporations Act must comply if they meet at least two of the three size thresholds applicable to their reporting group.

Entities meeting at least two of the following: 

Group 1 (2024-25  onwards)

>   500 employees

>   $1bn consolidated assets

>   $500m revenues

Group 2 (2026-27  onwards)

>   250 employees

>   $500m consolidated assets

>   $200m revenues

Group 3 (2027-28  onwards)

>   100 employees

>   $25m consolidated assets

>   $50m revenues

AASB S2 climate reporting becomes mandatory in phases, depending on an organisation’s size and classification under the Corporations Act 2001.

The commencement dates are structured in three groups:

• Group 1: Reporting periods beginning on or after 1 January 2025 
• Group 2: Reporting periods beginning on or after 1 July 2026 
• Group 3: Reporting periods beginning on or after 1 July 2027
   

The Corporations Act determines whether an entity is captured under the mandatory reporting regime. Detailed eligibility criteria are published by ASIC.

AASB S2 requires disclosure of climate-related risks and opportunities that could reasonably influence an organisation’s:

• Cash flows 
• Access to finance 
• Cost of capital
   

Disclosures must cover:

• Governance oversight 
• Strategy and resilience 
• Climate-related risk management processes 
• Metrics and targets 
• Scenario analysis 
•  Scope 1 and Scope 2 greenhouse gas emissions, with Scope 3 emissions required in line with AASB S2 phased implementation and transitional relief provisions.
   

The aim is to provide investors and stakeholders with clear insight into how climate change affects financial performance and long-term resilience.

Yes. Organisations that are not captured under the mandatory reporting thresholds may choose to voluntarily apply AASB S1 and/or AASB S2.

However, if an entity claims compliance, it must fully meet all requirements of the selected Standard.

Voluntary adoption is increasingly common among organisations seeking investor alignment or preparing for future regulatory expansion.

AASB S2 is the Australian implementation aligned with the ISSB IFRS S2 climate disclosure standard.