AASB S2 Reporting Checklist: Free 2026 Guide | NetNada

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If your business is in scope for Australia’s mandatory climate reporting, AASB S2 is the standard you have to satisfy — and the gap between “we know we have to report” and “we know exactly what to disclose” is where most teams get stuck.

This AASB S2 reporting checklist turns the full standard into clear, actionable items across the four disclosure pillars — governance, strategy, risk management, and metrics & targets — plus the Scope 1, 2 and 3 emissions, scenario analysis, transition planning and assurance requirements that sit underneath them. Use it to confirm whether you’re in scope, scope your first Sustainability Report, and run an honest gap analysis before your reporting period starts.

The complete checklist is laid out on this page so you can start now — copy it into your own tracker and share it with your board, finance team and auditor.

In short: AASB S2 requires in-scope Australian entities to disclose climate-related risks and opportunities across four pillars — governance, strategy, risk management, and metrics & targets — inside an audited Sustainability Report. This checklist breaks every pillar into the specific items you need to prepare, in the order most teams tackle them. For the wider context, start with our full AASB S2 guide.

Who this AASB S2 checklist is for

This checklist is built for the people who actually have to produce the report:

CFOs and finance teams owning the Sustainability Report as the “fourth report” alongside the financial statements.
Sustainability and ESG managers translating the standard into a data and disclosure plan.
Company secretaries, directors and risk officers preparing for board sign-off and director declarations.
Auditors and advisers running readiness or gap assessments for clients.

It works whether you’re a Group 1 entity already reporting, or a Group 2 or Group 3 entity that wants a head start. (See the timeline below to find your group.)

First: are you in scope, and when? (AASB S2 phase-in)

AASB S2 applies through the Australian Sustainability Reporting Standards (ASRS) under the Corporations Act 2001, phased in by entity size. An entity is generally captured if it meets at least two of three thresholds (and is required to lodge financial reports under Chapter 2M).

Group	First reporting periods on/after	Revenue	Gross assets	Employees
Group 1	1 January 2025	≥ $500M	≥ $1B	≥ 500
Group 2	1 July 2026	≥ $200M	≥ $500M	≥ 250
Group 3	1 July 2027	≥ $50M	≥ $25M	≥ 100

An entity is captured if it meets at least two of the three thresholds for its group. Source: AASB / ASRS phase-in under the Corporations Act. Confirm your group and entity-specific obligations with your adviser — NGER reporters and asset owners above certain thresholds have additional rules.

Do I have to report under AASB S2? You are likely in scope if you lodge financial reports under Chapter 2M of the Corporations Act and meet at least two of three size thresholds for your group (revenue, gross assets, employee headcount). Group 1 reports first (periods from 1 Jan 2025), then Group 2 (from 1 Jul 2026) and Group 3 (from 1 Jul 2027). For the policy backdrop, see the latest AASB S2 policy changes.

The AASB S2 reporting checklist

The checklist follows the structure of the standard itself. Work top to bottom: confirm scope, then disclose against the four pillars, then layer in emissions, scenario analysis and assurance.

Part 1 — Scope, governance and reporting basics

Confirmed which group you fall into and your first reporting period.
Confirmed the Sustainability Report will be lodged with ASIC as part of the annual report.
Identified who holds board-level oversight of climate-related risks and opportunities.
Documented management’s role — which roles/committees assess and manage climate risk, and how often they report to the board.
Described how climate considerations are integrated into board and committee processes (e.g. strategy, risk appetite, remuneration where relevant).
Identified the skills and competencies the board relies on for climate oversight.

Governance is the pillar AASB S2 most expects you to own internally. If you’re unsure where accountability should sit, our guide to who owns climate governance breaks down the management roles behind these disclosures.

Part 2 — Strategy

Identified climate-related risks (physical and transition) and opportunities relevant to the business.
Assessed the time horizons (short, medium, long term) over which each could reasonably affect the business.
Described the current and anticipated effects of climate risks/opportunities on the business model and value chain.
Described effects on financial position, financial performance and cash flows (current and anticipated).
Documented the climate resilience of your strategy, informed by scenario analysis (see Part 5).
Disclosed any climate-related transition plan, including key assumptions and dependencies.

Translating climate risk into financial-statement language is one of the harder parts of strategy disclosure — our guide to disclosing the financial effects of climate risk walks through it step by step.

Part 3 — Risk management

Described the processes used to identify and assess climate-related risks (inputs, parameters, prioritisation).
Described how you monitor and manage those risks.
Explained how these processes are integrated into your overall enterprise risk management.

If you’re building this from scratch, our 7-step framework for climate risk and opportunity assessment gives you a repeatable process to point to.

Part 4 — Metrics, targets and emissions

Measured and disclosed Scope 1 GHG emissions (required from Year 1).
Measured and disclosed Scope 2 GHG emissions — location-based (required from Year 1).
Built a plan/data pipeline for Scope 3 emissions, including financed emissions where relevant (required from Year 2).
Disclosed the measurement approach, inputs and assumptions used for the GHG inventory (consistent with the NGER scheme / GHG Protocol where applicable).
Disclosed any climate-related targets (and whether they’re absolute or intensity-based), the base year, and progress against them.
Disclosed how targets relate to any statutory or sectoral commitments and the use of carbon credits/offsets, if any.
Disclosed industry-based metrics relevant to your sector where applicable.

Part 5 — Scenario analysis

Conducted climate scenario analysis using at least the number of scenarios required by the standard, including a high-warming and a well-below-2°C/1.5°C-aligned scenario.
Documented scenario assumptions, methodology and analytical choices.
Linked scenario findings back to your strategy and resilience disclosures (Part 2).

Scenario analysis is where methodology choices get scrutinised — see simplifying scenario analysis under AASB S2 for an approach your auditor can follow.

Part 6 — Assurance, sign-off and presentation

Mapped the assurance phase-in that applies to your reporting periods (assurance scope expands over time from limited toward reasonable assurance).
Prepared for a directors’ declaration on the Sustainability Report.
Ensured disclosures use the required location (Sustainability Report within the annual report) and cross-reference financial statements where information is connected.
Applied available transitional reliefs correctly (e.g. modified liability settings and Scope 3 / scenario-analysis timing relief in early years).
Created an audit-ready evidence trail — data sources, calculations, methodology notes and internal controls.

What does an AASB S2 report need to cover? Four pillars: (1) Governance of climate risks and opportunities; (2) Strategy, including effects on the business and a transition plan; (3) Risk management processes; and (4) Metrics & targets, including Scope 1 and 2 emissions in Year 1 and Scope 3 from Year 2, plus scenario analysis and any climate targets. (For general, non-climate sustainability disclosures, the partner standard is AASB S1.)

How to use this checklist (3 steps)

Confirm scope and timing. Use the phase-in table to lock your group and first reporting period — this sets every other deadline.
Run a gap analysis. Mark each item Have / Partial / Don’t have. The “Partial” and “Don’t have” rows become your work plan.
Sequence the data work. Scope 3 emissions and scenario analysis take the longest — start them first, even if they’re only required in Year 2.

If this is your first cycle, our walkthrough on how to prepare your first ASRS climate report sequences these steps into a full project plan.

Why this is harder than it looks (and where teams underestimate effort)

The disclosures most teams underestimate are Scope 3 emissions and scenario analysis. Scope 3 often makes up the large majority of an organisation’s footprint and depends on supplier and spend data you may not collect today. Scenario analysis requires methodology choices your auditor will scrutinise. Both need lead time measured in months, not weeks — which is why the checklist front-loads them. The same pattern shows up in the cost of ASRS reporting: data, Scope 3 and scenario analysis account for more than half the bill.

It also helps to see how Australian companies are preparing before you design your own process from scratch — published approaches are some of the cheapest capability-building available.

This is the work NetNada’s platform and team are built for: building an audit-ready Scope 1–3 inventory, running scenario analysis, and producing an AASB S2-aligned Sustainability Report your auditor and board can sign off — on audit-ready reporting software you keep.

Ready to turn this checklist into a plan? Book a 20-minute AASB S2 readiness call and we'll walk your team through scope, gaps and the fastest path to an audit-ready report.

Sources & further reading

AASB S2 Climate-related Disclosures, Australian Accounting Standards Board
AASB, Overview of Australian Sustainability Reporting Standards — aasb.gov.au
Auditing and Assurance Standards Board (AUASB), sustainability assurance roadmap — auasb.gov.au
NetNada, AASB S2 compliance guide (confirm your group, timeline and obligations)

A note on scope: this checklist is a readiness and gap-analysis aid, not a substitute for the AASB S2 standard or professional advice. Your final report must comply with AASB S2 as issued by the AASB and meet the assurance requirements set by the AUASB. Always confirm your specific obligations with a qualified adviser.

About the author. Afonso Firmo is a carbon accountant and ASRS consultant at NetNada, where he advises Australian companies on AASB S2 climate reporting, assurance readiness and carbon accounting.

Frequently Asked Questions

What is the AASB S2 reporting checklist?

It's a practical breakdown of AASB S2 Climate-related Disclosures into discrete, checkable reporting items across governance, strategy, risk management, and metrics & targets — plus Scope 1–3 emissions, scenario analysis and assurance. It's a readiness and gap-analysis tool, not a substitute for the standard or professional advice.

Is the checklist specific to Australia?

Yes. It's built for the Australian Sustainability Reporting Standards (ASRS) regime under the Corporations Act 2001. AASB S2 is Australia's adaptation of the global IFRS S2 standard, with local thresholds, timing and assurance rules.

Who has to comply with AASB S2?

Entities required to lodge financial reports under Chapter 2M of the Corporations Act that meet the size thresholds for their group (see the phase-in table). Group 1 entities report first, followed by Group 2 and Group 3.

When do Scope 3 emissions become mandatory?

Scope 1 and Scope 2 emissions are required from Year 1 of reporting. Scope 3 emissions are required from Year 2, with transitional protections in the early period to help preparers build the data capability.

Does this checklist replace the AASB S2 standard or an audit?

No. It's a preparation aid. Your final report must comply with the AASB S2 standard as issued by the AASB and meet the assurance requirements set by the AUASB. Always confirm your specific obligations with a qualified adviser.

Is this suitable for listed and large private entities?

Yes — the checklist covers the requirements that apply to both listed and large unlisted entities captured by the regime. The depth of scenario analysis and assurance expected scales with your group and reporting maturity.