The AASB S2 checklist for Group 2 reporters
A checklist for Group 2 entities preparing their first AASB S2 disclosure, covering scope, scenarios, physical risk evidence and the documentation an auditor will ask for.
Glossary
AASB S2
AASB S2 is the Australian climate-related disclosure standard, the local implementation of IFRS S2, issued as part of the Australian Sustainability Reporting Standards.
AASB S2 Climate-related Disclosures is the Australian standard requiring in-scope entities to disclose climate-related risks and opportunities in their annual reporting. It is issued by the Australian Accounting Standards Board as part of the Australian Sustainability Reporting Standards (ASRS), and is the Australian implementation of IFRS S2 from the ISSB.
Structure
Disclosure is organised into four pillars, inherited from the TCFD framework:
| Pillar | What it asks for |
|---|---|
| Governance | Who oversees climate risk, and how |
| Strategy | Risks, opportunities, financial effects, scenario resilience |
| Risk management | How risks are identified, assessed and prioritised |
| Metrics and targets | Emissions, exposed assets, and any targets set |
Phasing
Reporting is phased by entity size. Group 1 entities began with reporting periods commencing on or after 1 January 2025. Group 2 starts from 1 July 2026 and Group 3 from 1 July 2027. Thresholds combine revenue, gross assets and employee count, with separate treatment for NGER reporters.
The difficult part
The governance and risk management pillars are documentation work. The strategy pillar requires climate scenario analysis. That requires site-level physical risk data, which requires spatial joins against hazard datasets that were not designed for this use. Most first-time reporters stall at that step.
Related terms
ASRS, IFRS S2, physical risk, transition risk, scenario analysis, SSP, CMIP6.
Frequently asked
What is the difference between AASB S2 and IFRS S2?
AASB S2 is the Australian adoption of IFRS S2. The requirements are substantially aligned. AASB S2 adds Australian-specific application guidance and phases in requirements by reporting group with some transitional relief.
Is AASB S2 mandatory?
Yes, for entities in scope. It applies on a phased basis by entity size, starting with Group 1 for reporting periods beginning on or after 1 January 2025.
Related
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