AASB S2 Scope 3 emissions + assurance phase-in
Group 1 entities must report Scope 3 from year 2 + escalating assurance through to FY30.
Who must comply
Group 1 (large entities + NGER reporters), staged Group 2 (FY27), Group 3 (FY28).
What triggers it
Mandatory climate disclosure regime under Treasury Laws Amendment (Financial Markets, Sustainability and Other Measures) Act 2024.
When due
Within annual financial report. Scope 1 + 2 from FY25; Scope 3 + limited assurance from FY26 for Group 1.
Evidence required
Climate-related financial disclosures section in annual report. Auditor assurance report. NGER alignment.
Max penalty
—
Effective from
1 January 2025
Summary
AASB S2 mandates Scope 1 + 2 from year 1; Scope 3 from year 2. Limited assurance over Scope 1 + 2 from year 1, escalating to reasonable assurance over all greenhouse gas disclosures from FY30 for Group 1 entities. ASIC + AASB monitoring + thresholds for Group 2 + 3 phase-in.
Enforced by
Source legislation
Topics
Related obligations
- CWLTHLodge mandatory climate-related financial disclosures (ASRS S2)Group 1/2/3 entities must publish ASRS-aligned climate disclosures with their annual financial reports.
- 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.
- CWLTHNGER reporting (Clean Energy Regulator)Threshold-triggered annual emissions, energy production + consumption reporting.
- CWLTHSafeguard Mechanism baseline decline 4.9% paAustralia's 215 largest emitters face declining baselines under Safeguard Mechanism reform.
Frequently asked questions
- Who must comply with AASB S2 Scope 3 emissions + assurance phase-in?
- Group 1 (large entities + NGER reporters), staged Group 2 (FY27), Group 3 (FY28).
- What triggers AASB S2 Scope 3 emissions + assurance phase-in?
- Mandatory climate disclosure regime under Treasury Laws Amendment (Financial Markets, Sustainability and Other Measures) Act 2024.
- When is AASB S2 Scope 3 emissions + assurance phase-in due?
- Within annual financial report. Scope 1 + 2 from FY25; Scope 3 + limited assurance from FY26 for Group 1.
- What evidence is required for AASB S2 Scope 3 emissions + assurance phase-in?
- Climate-related financial disclosures section in annual report. Auditor assurance report. NGER alignment.
Source: https://www.aasb.gov.au/admin/file/content105/c9/AASB_S2.pdf. Rules Mate is not a law firm. Always verify against the live regulator source before acting.