The introduction of mandatory climate disclosures under AASB S2 represents a significant regulatory shift for Australia’s corporate landscape. While the new regulations will challenge even the most sophisticated of organizations, they also present a rare opportunity. With the right approach, companies can transform this compliance task into a strategic advantage.
At RESET Carbon we work with forward-looking companies to move quickly and purposefully towards climate action. With our extensive experience implementing supply chain decarbonization programs for many of the world’s leading brands, our clients are not just asking us how to comply. They’re asking how to align strategy, finance and operations to future proof their business and communicate a credible, action-led response to investors, regulators, and customers.
Why this matters now
Under the Treasury Laws Amendment Act, companies that fall under Group 1, 2 or 3 thresholds must prepare sustainability reports in line with the new AASB standard, beginning with climate-related disclosures. AASB S2 draws directly from the ISSB framework and requires companies to disclose their governance, strategy, risk management and performance in relation to climate risks and opportunities. This includes material physical and transition risks as well as metrics and targets like those relating to scope 1, 2 and 3 emissions.
Companies also must prepare directors’ declarations and will be expected to submit reports to a phased assurance regime. These aren’t optional add-ons and will become a central part of how company performance is assessed and compared.
How is the market responding?
Right across the market, momentum is building. Large organizations that already report in line with global frameworks such as TCFD/ISSB are now reviewing their internal processes to align with the specific requirements of AASB S2. Many are conducting structured gap analyses, building cross-functional working groups, and expanding the scope of their climate disclosures to meet new regulatory expectations.
At the same time, a significant number of companies are still finding their footing. Some are in the early stages of understanding how AASB S2 applies to them, while others are wrestling with practical challenges such as scope 3 data collection, scenario development and internal resource constraints. For these organisations, the process can feel complex and resource intensive.
The broader advisory and audit landscape has responded quickly. New guidance materials, training programmes and assurance frameworks are emerging. However, much of the advice remains general, and many companies are seeking support that is more tailored, more actionable and better suited to their internal capacity.
Where many are getting stuck
Despite good intentions, some companies are at risk of over-reporting while failing to meaningfully reduce risk. Others are bogged down by data challenges or internal silos. A focus on compliance alone can lead to generic disclosures that add little value and stretch internal resources.
AASB S2 is not meant to be a box-ticking exercise. Done well, it is a catalyst to align internal priorities, understand business vulnerabilities and seize opportunities.
RESET Carbon’s approach
At RESET Carbon, our philosophy is simple. Climate disclosure should support real action. It should help companies focus on what matters, reduce risk, and identify opportunities for growth and resilience. It should not become a reporting exercise that drains internal resources or delays progress.
We take a focused and practical approach designed to work with your existing systems and capabilities. Our work is targeted, action-oriented and efficient, ensuring that the steps you take not only meet the requirements of AASB S2 but also serve your wider business objectives.
This begins with a clear understanding of your current position, followed by identifying the most material risks and opportunities. From there, we help you design a plan that is both credible and achievable, supporting your team to move with clarity and confidence, avoiding unnecessary complexity. The result is a disclosure that meets regulatory requirements whilst driving strategic value.
Whether you’re preparing your first climate statement or refining an existing one, we ensure your efforts are focused, your resources are used effectively, and your business is equipped to lead.
To explore how our team can support you turn AASB S2 compliance into a strategic advantage connect with us today.