AASB S2 Climate-Related Financial Disclosures

Professional Compliance Services for Mandatory AASB S2 Reporting

Independent support for governance, strategy, risk management, and metrics and targets disclosures under Australia’s mandatory climate reporting standard, delivered by experienced Australian sustainability advisers.

Book a Free Consultation How It Works
AASB S2
Mandatory Climate Disclosure Standard
Governance
to Targets
Full Core Content Coverage
Scope
1, 2 & 3
Emissions Metrics Support
Groups
1, 2 & 3
Phased Reporting Requirements Covered
100%
Independent, Unbiased Advice

Get Ahead of AASB S2

Early scoping is what separates a confident first disclosure from a rushed one. Our team can help you map your reporting group, timeline and material climate risks before the pressure builds.

See Our Process
About This Service

AASB S2 Reporting Services for Australian Entities

Mandatory AASB S2 reporting is now a reality for large Australian businesses and financial institutions. Introduced through amendments to the Corporations Act, the standard requires affected entities to disclose climate-related risks and opportunities that could reasonably be expected to affect their cash flows, access to finance or cost of capital, covering governance, strategy, risk management, and metrics and targets. At Aqualis Carbon Advisory, we help organisations prepare defensible, assurance-ready disclosures that satisfy the standard without unnecessary complexity.

Reporting obligations are phasing in across three groups, based on entity size or emissions profile, with Group 1 entities generally reporting from annual periods beginning on or after 1 January 2025, Group 2 from 1 July 2026 and Group 3 from 1 July 2027. Whichever group applies to your organisation, early scoping and a structured approach make the difference between a rushed first disclosure and a credible, well-governed reporting programme.

Our team works alongside sustainability, risk, legal and finance stakeholders to build the governance structures, risk processes, climate scenario analysis and metrics frameworks that sit behind a compliant AASB S2 disclosure. We bring the same independent, evidence-based approach we apply across our GHG emissions inventory, Climate Active certification and net zero strategy work, so your climate disclosures are consistent, traceable and ready to withstand external assurance.

A note on scope: Aqualis supports the full spectrum of AASB S2 reporting with one exception. We do not prepare the financial position, financial performance and cash flow disclosures required under the standard, as this sits within statutory financial reporting. We do, however, work closely with your accounting and finance teams to provide the sustainability expertise and climate risk input those disclosures rely on.

Our Scope of Support

AASB S2 Reporting Core Content We Help You Address

AASB S2 is built around five core content areas. We provide hands-on support across each of them.

GOVERNANCE

Governance Disclosures

We help you document how your board and management oversee climate-related risks and opportunities, including reporting lines, skills and competencies, and how climate considerations factor into strategy, major transactions and remuneration.

STRATEGY

Strategy & Business Model

We identify the climate-related risks and opportunities relevant to your business model and value chain, and help articulate their current and anticipated effects on your strategy, decision-making and transition plans.

RISK MANAGEMENT

Risk Management Processes

We help you design and document the processes used to identify, assess, prioritise and monitor climate-related risks, and show how those processes are integrated into your organisation’s broader enterprise risk management.

METRICS & TARGETS

Metrics & Targets

We calculate and disclose Scope 1, 2 and 3 greenhouse gas emissions and the other cross-industry metrics AASB S2 requires, then help you set, track and report progress against credible climate-related targets.

RESILIENCE

Climate Resilience & Scenario Analysis

We run climate-related scenario analysis appropriate to your circumstances, testing your strategy and business model against a range of transition and physical risk pathways to demonstrate genuine climate resilience.

Why It Matters

Why Australian Entities Need Professional AASB S2 Reporting Support

AASB S2 reporting is a significant undertaking that touches governance, risk, finance and operations. Getting the framework right from the outset protects your organisation and its stakeholders.

Regulatory Drivers

  • AASB S2 is mandatory under the Corporations Act for large entities and financial institutions, phased in across Group 1, 2 and 3 reporting entities
  • Directors and governance bodies carry direct accountability for the accuracy and completeness of climate-related financial disclosures
  • Assurance expectations over climate disclosures are expected to increase as the regime matures
  • Scope 3 emissions, scenario analysis and target disclosures require lead time to prepare properly and cannot be left until the reporting deadline

Commercial Drivers

  • Credible, well-governed disclosures build confidence with investors, lenders and insurers assessing climate risk exposure
  • A structured AASB S2 programme strengthens board-level oversight of climate risks and opportunities across the business
  • Early scoping avoids the cost and disruption of a rushed first-year disclosure
  • Integrating AASB S2 with your existing GHG inventory and net zero strategy work reduces duplication and improves data quality
Our Methodology

Our AASB S2 Reporting Process

We follow a structured, four-stage process that builds your AASB S2 reporting capability progressively, so each year’s disclosure is stronger than the last.

01

Scoping & Materiality Assessment

We confirm your reporting group and timeline, identify the climate-related risks and opportunities material to your organisation, and set the boundary for your disclosure.

02

Governance & Risk Framework

We help document your governance oversight arrangements and build or refine the risk management processes that identify, assess and monitor climate-related risk.

03

Strategy, Metrics & Scenario Analysis

We quantify your Scope 1, 2 and 3 emissions, run climate scenario analysis and articulate the effects of climate risk on your strategy, business model and value chain.

04

Disclosure Drafting & Assurance Readiness

We draft your governance, strategy, risk management and metrics and targets disclosures, and prepare supporting evidence so your report is ready for external assurance.

Why Aqualis

Why Choose Aqualis Carbon Advisory for AASB S2 Reporting

We are an independent Australian climate advisory firm with dedicated AASB S2 reporting expertise built on our broader GHG accounting, scenario analysis and sustainability strategy capability. We do not sell carbon offsets or renewable energy certificates, so our advice on your disclosures is always objective and in your interest.

AASB S2
Mandatory Disclosure Specialists
Governance
to Targets
Full Core Content Coverage
100%
Independent, Unbiased Advice
Groups
1, 2 & 3
Phased Reporting Requirements Covered

Our credentials include:

Deep technical knowledge of AASB S2 core content requirements and the Corporations Act climate reporting regime
Experience supporting finance and accounting teams with the sustainability expertise behind financial position, performance and cash flow disclosures
In-house GHG emissions inventory and climate-related scenario analysis capability
Climate Active certification and net zero strategy expertise that complements your AASB S2 disclosure programme
Multi-sector experience across corporate, government, property, infrastructure and financial services organisations
Our Services

Our Full Range of Services

AASB S2 reporting works best as part of a joined-up climate programme. Aqualis supports every stage, from measuring emissions to certification and strategy, across all our service areas.

AASB S2 Reporting Current page
Climate Active Certification (Organisation) Achieve carbon neutral certification for your organisation
GHG Emissions Inventories Independent Scope 1, 2 and 3 carbon footprint auditing
Life Cycle Assessment Quantify cradle-to-grave environmental impacts of products
Environmental Product Declarations Publish independently verified product sustainability data
Climate Active Certification (Products & Services) Certify your products or services as carbon neutral
Net Zero Strategy Build a credible, science-aligned pathway to net zero
Carbon Offsets Guidance Independent advice on sourcing, evaluating and retiring high-quality carbon offsets
Common Questions

Frequently Asked Questions

Have questions about AASB S2 reporting? Here are the questions we hear most often from Australian boards, sustainability teams and finance functions.

The Corporations Act sets three phased start dates based on entity size and emissions profile. Group 1 entities generally report from annual periods beginning on or after 1 January 2025, Group 2 from 1 July 2026 and Group 3 from 1 July 2027. Broadly, this captures large listed and unlisted entities, financial institutions and entities that already report under the National Greenhouse and Energy Reporting scheme above certain thresholds. We can help you confirm which group applies to your organisation and what that means for your first reporting deadline.
No. Those disclosures sit within your statutory financial statements and are prepared by your accounting and finance teams, typically with your auditor. What we do provide is the sustainability expertise those disclosures depend on, such as the climate risk assumptions, transition cost estimates and emissions data that feed into figures like asset impairment or anticipated financial effects. We work directly alongside your finance team so the numbers they prepare are grounded in credible climate analysis.
Yes. AASB S2 requires entities to use climate-related scenario analysis to assess the resilience of their strategy and business model, using an approach commensurate with their circumstances. This means the level of sophistication expected scales with your exposure to climate risk and the skills, capabilities and resources available to you. We tailor the scenario analysis to your organisation, from qualitative scenario narratives through to more quantitative modelling, so the outcome is proportionate and defensible.
AASB S2 is a mandatory financial reporting standard focused on disclosing climate-related risks and opportunities to investors and other users of your general purpose financial report. Climate Active is a voluntary, government-backed certification programme that requires you to measure, reduce and offset your emissions to achieve carbon neutral status. The two are complementary. A GHG emissions inventory built for Climate Active can directly support your AASB S2 metrics and targets disclosures, and we help clients align both programmes to avoid duplicating effort.
Assurance requirements are expected to apply to climate-related financial disclosures and to expand in scope over the transition period, generally aligning with your existing financial statement audit timeline. We prepare your AASB S2 disclosures with assurance in mind from the outset, documenting the evidence, assumptions and methodology behind your governance, strategy, risk management and metrics disclosures so the process with your assurance provider is as efficient as possible.
Get Started

Ready to Prepare Your AASB S2 Disclosures? Let’s Talk.

Getting started is straightforward. Fill in the form below and one of our consultants will be in touch within one business day to discuss your reporting timeline, confirm the scope of work and provide a fee proposal. There is no obligation and the initial consultation is free.

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AASB S2 Reporting Requirements
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