Under the GHG Protocol - the global standard for carbon accounting - greenhouse gas emissions are classified into three scopes. Scope 1, 2 and 3 emissions together represent your organisation's total carbon emissions profile. AASB S2 requires Australian entities to measure and disclose scope 1 2 3 emissions as part of mandatory ESG reporting, phased over the first two years.
Greenhouse gas emissions from sources your organisation owns or directly controls. These are the emissions your operations physically produce.
Examples: Burning natural gas for heating, diesel in company vehicles, refrigerant leaks from HVAC systems, process emissions from manufacturing, on-site fuel combustion.
Indirect GHG emissions from the generation of purchased electricity, steam, heating, or cooling that your organisation consumes. You don’t produce these emissions directly, but your energy demand causes them.
Examples: Electricity purchased from the grid to power offices, warehouses, or data centres. Steam purchased for industrial processes. Cooling supplied by a district system.
All other indirect emissions across your upstream and downstream value chain. Scope 3 typically represents 70–90% of a company’s total carbon footprint and is the most challenging to measure.
Examples: Purchased goods and services, business travel, employee commuting, transportation and distribution, use of sold products, waste disposal, leased assets, investments (financed emissions).
Scope 1 is straightforward - count your fuel and refrigerants. Scope 3 is deferred to Year 2. But Scope 2 emissions data - the electricity consumed across every site your organisation operates - is where the real operational pain lives, especially for multi-site businesses.
A franchise network with 150 locations across NSW, VIC, and QLD will have electricity contracts with multiple retailers, bills arriving in different formats, on different cycles, to different email addresses. A national hospitality chain or multi-site retail business faces the same complexity. For AASB S2, every kilowatt-hour needs to be captured, mapped to the correct NMI, and converted to CO₂-e using state-specific emission factors.
Common gaps: Bills buried in retailer portals, sites on different contract end dates, no NMI-level data export, inconsistent formats across AGL, Origin, and EnergyAustralia, manual spreadsheets that break at audit.
Your auditor needs a clear trail from raw electricity consumption (kWh per NMI) through to CO₂-e per site, using the location-based method with the correct NGA emission factors for each state grid. For multi-site businesses, that means centralising data from every retailer, validating it against actual bills, and producing a dataset that can withstand limited assurance in Year 1 and reasonable assurance from 2030.
Required outputs: Site-level kWh consumption, state grid emission factors applied, CO₂-e disaggregated by location, reconciliation to retailer invoices, documented methodology, auditor-ready data trail.
Calculating GHG emissions for AASB S2 follows the GHG Protocol methodology. For most businesses, Scope 2 - your electricity and purchased energy - is the starting point and the area where data quality matters most. Here is the carbon accounting process, with particular attention to getting your energy data right.
Operational control, financial control, or equity share. Must be consistent with your NGER approach where applicable.
For Scope 2: electricity consumption (kWh) per NMI from every site and retailer. For Scope 1: fuel (litres, GJ), refrigerants. For Scope 3: procurement spend, travel, logistics.
For Scope 2: use state-specific NGA grid emission factors (different for NSW, VIC, QLD, SA, WA). For Scope 1: NGA fuel factors. For Scope 3: IPCC or supplier-specific factors.
Aggregate all greenhouse gases into CO₂ equivalent using global warming potential values consistent with AASB S2 requirements.
AASB S2 Climate-related Disclosures is Australia’s mandatory standard for climate-related financial disclosures, embedded in the Corporations Act 2001. It is part of the Australian Sustainability Reporting Standards (ASRS) and closely aligned with the global baseline set by IFRS S2, issued by the International Sustainability Standards Board. Built on the TCFD framework, it requires in-scope entities to prepare an annual sustainability report disclosing climate-related risks and opportunities - including greenhouse gas emissions, scenario analysis, climate governance, and transition plans. Non-compliance carries civil penalties and director liability under the Corporations Act. Entities must meet at least two of three size thresholds (revenue, assets, employees) or qualify via NGER reporting or asset ownership criteria. For multi-site businesses, the Scope 2 data challenge is particularly acute - consolidating electricity data from dozens or hundreds of locations, across multiple retailers and states, into audit-ready emissions figures.
Climate-related disclosures under AASB S2 are structured around four pillars, aligned with the TCFD framework. All four must be addressed in your sustainability report, lodged with ASIC.
Board and management oversight, directors’ duties, controls, and procedures for monitoring climate-related risks and opportunities.
Material climate risks, scenario analysis under 1.5°C and >2°C pathways, financial effects, and transition plans aligned with net zero targets.
How climate risks are identified, assessed, prioritised, and integrated into your enterprise risk management framework.
Scope 1 & 2 GHG emissions (Year 1), material Scope 3 (Year 2), carbon accounting methodology, emission factors, climate targets, and capital deployed. For multi-site businesses, this means centralising energy data across all locations and retailers.
Mandatory climate reporting under AASB S2 is phased across three groups. Each group follows the same assurance pathway once reporting begins.
Getting audit-ready Scope 2 emissions data shouldn't mean months of chasing retailer portals and wrangling spreadsheets. Termina aggregates electricity data across all your sites and retailers into a single platform - giving you NMI-level consumption data, automated emission factor application, and a clean audit trail for AASB S2 disclosure. Whether you're a franchise group, hospitality chain, multi-site retailer, or any business managing energy across multiple locations, Termina turns scattered electricity bills into assured Scope 2 emissions figures.