AASB S2 Mandatory Climate Reporting
Australia’s mandatory climate disclosure regime is now in effect. We help organisations build the emissions foundation, prepare the sustainability report, and meet assurance requirements from year one.
Mandatory from FY25. We make it manageable.
About Climate Reporting
Australia’s mandatory climate reporting regime is now in effect. Under the Corporations Act 2001, large listed and private companies and financial institutions are required to prepare an annual sustainability report disclosing their climate-related risks and opportunities. The standard is AASB S2 Climate-related Disclosures, issued by the Australian Accounting Standards Board in September 2024.
Reporting is structured around four pillars: Governance, Strategy, Risk Management, and Metrics and Targets. The Metrics and Targets pillar is where most organisations face the steepest practical challenge: it requires measurement and disclosure of Scope 1, Scope 2, and (from year two) material Scope 3 greenhouse gas emissions across the full value chain.
Who needs to report and when
Reporting under AASB S2 is phased across three groups. An entity is captured if it meets at least two of three size criteria, is a registered NGER reporter, or (for financial institutions) manages assets above the threshold.
- Group 1
- 500+ employees
- or $1B+ consolidated gross revenue
- or $500M+ consolidated gross assets
- all NGER reporters above the publication threshold — FY2025 (year ending 31 December 2024 or 30 June 2025)
- Group 2
- 250+ employees
- or $500M+ consolidated gross revenue
- or $250M+ consolidated gross assets
- all other registered NGER reporters — FY2026
- Group 3
- 100+ employees
- or $50M+ consolidated gross revenue
- or $25M+ consolidated gross assets — FY2027
All registered NGER reporters are captured automatically (Group 1 for those above the publication threshold, Group 2 for all others) regardless of whether they meet the size criteria. Even organisations below the mandatory thresholds may need to act: AASB S2 requires in-scope entities to report material Scope 3 emissions from year two, so suppliers are already receiving data requests from larger customers building their value chain inventories.
AASB S2 climate disclosures require independent assurance from the first reporting year, escalating to full reasonable assurance for financial years commencing on or after 1 July 2030.
Services
Where ReGen
can help
Emissions inventory: Scopes 1, 2 and 3
An accurate, defensible emissions inventory is the bedrock of any AASB S2 report. ReGen works with eco-shaper, an AI-powered sustainability reporting platform, to automate the collection, calculation, and management of emissions data across all three scopes.
eco-shaper’s platform is GHG Protocol compliant and uses audited algorithms alongside regionalised Australian emission factors to calculate accurate, location-based Scope 2 emissions as required under AASB S2. Its zero-touch data automation and supply chain engagement tools address Scope 3 emissions reporting, which remains the most significant data challenge for most Australian organisations preparing their first AASB S2 sustainability report.
Together, we help organisations:
- Map and quantify Scope 1 and Scope 2 emissions from the first reporting year
- Build out Scope 3 category coverage across the value chain in preparation for year two obligations
- Maintain a continuous, structured emissions dataset that meets assurance requirements
Emissions reduction strategy
Identifying emissions is only part of the picture. The eco-shaper platform provides AI-powered insights and analytics to support reduction planning, surfacing where emissions are concentrated and modelling pathways to reduce them. ReGen brings the technical and sector knowledge to turn that analysis into practical strategy: grounded in how an organisation operates, what is achievable within its context, and what needs to be disclosed. This work supports the Strategy and Metrics and Targets pillars of AASB S2, including transition planning.
Sustainability report preparation
AASB S2 reports must integrate with your financial reporting cycle, meet specific disclosure requirements under the standard, and be accompanied by a directors’ declaration. ReGen assists with preparing the sustainability report itself, structuring disclosures across all four pillars, ensuring consistency with the standard, and producing a document that will withstand assurance review.
Contact us
Whether your first reporting period is approaching or you are planning ahead, early preparation matters. Assurance requirements apply from day one, and building robust data systems takes time.
Contact Colin Davies, General Manager Sustainability and ESG, to discuss where your organisation sits in the reporting timeline and what steps make sense now.
