Australia AASB S2
Corporations Act 2001 Ch 2M (Treasury Laws Amendment (FMI and Other Measures) Act 2024, No. 87) — AASB S2
Topic : Climate · Level : National
Today
Group 1 from 1 Jan 2025, Group 2 from 1 Jul 2026, Group 3 from 1 Jul 2027. G3 threshold rise and assurance changes not legislated.
Summary
Australia's mandatory climate reporting applies AASB S2 through the Corporations Act. Group 1 started with FY from 1 Jan 2025, Group 2 from 1 Jul 2026 and Group 3 from 1 Jul 2027. Scope 3 is due from year two under modified liability. A threshold rise for Group 3 is proposed.
Who is concerned
- Turnover
- G1 ≥A$500m; G2 ≥A$200m; G3 ≥A$50m (2 of 3 tests)
- Employees
- G1 ≥500; G2 ≥250; G3 ≥100
- Listed company
- cotées et non cotées
- Sectors
- All sectors
- NGER reporters
- Asset owners ≥A$5bn
- Triggering activities
- Lodging financial reports under Ch 2M
- Meeting 2 of 3 tests (revenue/assets/FTE)
- NGER registration
- Extraterritorial reach
- No
Scope 3 required from second reporting year; value-chain data requested from overseas suppliers.
- Examples
- ASX miner buying Chinese equipment
- Australian retailer sourcing from China
- Large private importer above size tests
What the law requires
- Prepare an annual sustainability report with climate statements under AASB S2
- Disclose Scope 1-2, then Scope 3 from second year, with scenario analysis
- Obtain assurance, limited first, reasonable by 1 Jul 2030 (options to delay to 2035)
- Lodge within 3 or 4 months of year end with directors' declaration
Penalties
Corporations Act civil penalties apply. Modified liability until FY starting 2027 for Scope 3, scenarios, transition plans: only ASIC can act.
What this changes for a supplier in China
Australian buyers must report Scope 3 from their second year. Chinese exporters of goods and equipment receive emission data requests, with proxy data accepted early on.
Expected evidence
- Scope 1-2 GHG inventory
- Product carbon footprint for exported goods
- Electricity mix and fuel data
Tiers : Tier 1