AASB S2 Industry Report: Year 1 Learnings and Insights

What was once largely voluntary is now a mandatory reporting obligation. Organisations can no longer selectively apply frameworks or focus solely on positive outcomes. Under AASB S2, climate-related disclosures are subject to increasing scrutiny, directors' responsibilities are clearly defined, and reporting is being held to standards comparable with financial reporting.

Over the past year, our team has worked closely with Group 1 entities to identify climate-related risks and opportunities (CRROs), prepare disclosures, navigate assurance processes, and support audit firms as subject matter experts. These experiences have provided valuable insights into the practical realities of implementing Australia's new climate reporting requirements.

In this report, Senior Consultant Mark Hunyor and Principal Consultant Phil Senn share the key lessons emerging from this first reporting cycle, including:

• What auditors are looking for in climate disclosures
• Common reporting and assurance challenges organisations are facing
• Why evidence, governance and documentation are critical
• Practical considerations for future reporting periods
• How assurance expectations are evolving

Whether you're preparing for an upcoming reporting cycle or refining your current approach, this report provides a practical perspective on what works, what doesn't, and how organisations can better prepare for the future of climate reporting.