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AASB S2 Climate-related Disclosures is Australia's mandatory standard for climate-related financial reporting. It requires certain entities to disclose information about climate-related risks and opportunities across four pillars: governance, strategy (including scenario analysis), risk management, and metrics and targets - including Scope 1, 2, and eventually Scope 3 greenhouse gas emissions.

The TCFD was a voluntary framework with recommended disclosures. AASB S2 supersedes it in Australia - using the same four-pillar structure but with mandatory legal force, more granular requirements, prescribed climate scenarios (1.5°C and well exceeds 2°C), mandatory external assurance, and penalties up to $15 million or 10% of annual turnover for misleading statements.

AASB S2 is closely aligned with IFRS S2, with some Australian-specific modifications: it prescribes specific climate scenarios, does not currently require industry-based metrics, and includes Australian transition provisions and assurance phasing. If your parent reports under IFRS S2 globally, this does not exempt you from a separate AASB S2 report if you meet Australian thresholds.

You must report if your entity prepares a financial report under Chapter 2M of the Corporations Act and meets at least two of three size criteria for any group.
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Group 1:
≥$500M revenue, ≥$1B assets, or >500 employees.
Group 2:
≥$200M revenue, ≥$500M assets, or ≥100 employees.
Group 3:
≥$50M revenue, ≥$25M assets, or ≥100 employees.

NGER reporters and qualifying asset owners (≥$5B AUM) are also captured.

Group 1: financial years beginning on or after 1 January 2025.
Group 2: from 1 July 2026.
Group 3: from 1 July 2027.

The reporting period aligns with your financial year. For a July–June entity in Group 1, the first period is FY26 (1 July 2025 – 30 June 2026), with the sustainability report due within three months of year-end.

Yes. AASB S2 applies to any entity with Chapter 2M reporting obligations that meets the size thresholds - listed or unlisted, public or proprietary. Many of the first Group 1 reports published in early 2026 are from private unlisted entities.

Scope 1 (direct emissions from sources you own or control) and Scope 2 (indirect emissions from purchased electricity, measured location-based). Market-based Scope 2 is also required but has transitional relief for the first three years. Scope 3 emissions have a one-year grace period and become mandatory from your second reporting period.

Multiply electricity consumed at each site (kWh) by the location-based emission factor for the relevant state grid, published annually in the National Greenhouse Accounts Factors workbook. For multi-site portfolios, the challenge is consolidating data across many NMIs, reconciling billing periods to your financial year-end, and separating grid imports from on-site solar generation. Energy data platforms like Termina can automate this and provide the audit trail that assurance demands.

Solar self-consumption reduces your grid imports and therefore your Scope 2 emissions - you report net grid consumption multiplied by the relevant emission factor. Exported solar is not counted in your Scope 2. For batteries, emissions depend on the charging source: grid-charged electricity carries the grid emission factor; solar-charged carries effectively zero. Accurate interval data that distinguishes between grid, solar, and battery flows is essential. Termina reports this in a few clicks.