Climate scenario analysis (AASB S2)
S2 mandates climate scenario analysis at least 1.5°C-aligned + an additional scenario.
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Who must comply
Group 1/2/3 entities phasing per AASB S2.
What triggers it
Annual AASB S2 reporting cycle.
When due
Annually within climate disclosure cycle.
Evidence required
Scenario analysis methodology + outputs + governance review.
Max penalty
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Summary
AASB S2 requires entities to conduct climate-related scenario analysis at least once per year (or when material change). Methodology consistent with TCFD framework.
Enforced by
Source legislation
Topics
climateesgdisclosure
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 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.
- 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 Climate scenario analysis (AASB S2)?
- Group 1/2/3 entities phasing per AASB S2.
- What triggers Climate scenario analysis (AASB S2)?
- Annual AASB S2 reporting cycle.
- When is Climate scenario analysis (AASB S2) due?
- Annually within climate disclosure cycle.
- What evidence is required for Climate scenario analysis (AASB S2)?
- Scenario analysis methodology + outputs + governance review.
Source: https://www.aasb.gov.au. Rules Mate is not a law firm. Always verify against the live regulator source before acting.