Lodge mandatory climate-related financial disclosures (ASRS S2)
Group 1/2/3 entities must publish ASRS-aligned climate disclosures with their annual financial reports.
Who must comply
Entities meeting size thresholds and consolidated reporting requirements under the Corporations Act sustainability reporting provisions (s 292A onwards). Group 1: turnover ≥$500M, assets ≥$1B, or NGER publication threshold.
What triggers it
Meeting size thresholds.
When due
First reports: FY commencing on or after 1 Jan 2025 (Group 1).
Evidence required
Sustainability report with climate disclosures, emissions calculations, scenario analysis documentation.
Max penalty
ACCC greenwashing actions up to $100M / 30% turnover; ASIC director-duty exposure for poor disclosures
Effective from
1 January 2025
Summary
From financial years commencing 1 January 2025 (Group 1), 1 July 2026 (Group 2), and 1 July 2027 (Group 3), eligible entities must prepare and lodge sustainability reports applying the Australian Sustainability Reporting Standards (AASB S2 — climate-related disclosures). Scope 1, 2 and (from year 2) Scope 3 emissions must be disclosed alongside governance, strategy, and risk management. Auditor assurance phases in.
Enforced by
Source legislation
Topics
Related obligations
- CWLTHReport greenhouse and energy data under NGERCorporations meeting NGER thresholds must report Scope 1, Scope 2 emissions and energy data by 31 October.
- CWLTHComply with Safeguard Mechanism baseline (covered facilities)Facilities >100,000 tCO2-e/year must keep emissions below an annually declining baseline.
- CWLTHAASB S2 Scope 3 emissions + assurance phase-inGroup 1 entities must report Scope 3 from year 2 + escalating assurance through to FY30.
- CWLTHAASB S1 General Sustainability disclosures (likely)AASB likely to mandate S1 (general sustainability) following S2 climate phasing.
- CWLTHClimate scenario analysis (AASB S2)S2 mandates climate scenario analysis at least 1.5°C-aligned + an additional scenario.
- CWLTHASRS Group 2 climate disclosure — FY commencing on/after 1 July 2026Group 2 (mid-tier entities) start climate disclosure FY27.
Frequently asked questions
- Who must comply with mandatory climate-related financial disclosures (ASRS S2)?
- Entities meeting size thresholds and consolidated reporting requirements under the Corporations Act sustainability reporting provisions (s 292A onwards). Group 1: turnover ≥$500M, assets ≥$1B, or NGER publication threshold.
- What triggers mandatory climate-related financial disclosures (ASRS S2)?
- Meeting size thresholds.
- When is mandatory climate-related financial disclosures (ASRS S2) due?
- First reports: FY commencing on or after 1 Jan 2025 (Group 1).
- What is the maximum penalty for mandatory climate-related financial disclosures (ASRS S2)?
- ACCC greenwashing actions up to $100M / 30% turnover; ASIC director-duty exposure for poor disclosures
- What evidence is required for mandatory climate-related financial disclosures (ASRS S2)?
- Sustainability report with climate disclosures, emissions calculations, scenario analysis documentation.
Source: https://aasb.gov.au/admin/file/content105/c9/AASB_S2_09-24.pdf. Rules Mate is not a law firm. Always verify against the live regulator source before acting.