AASB S2 MANDATORY CLIMATE REPORTING IN AUSTRALIA
Prepare early. Avoid risk. Build an audit-ready emissions inventory.
Prepare Your Scope 1, 2 & 3 Climate Reporting (For Group 2 & Group 3 Companies)
Australia’s mandatory climate reporting regime is now law. Thousands of medium and large companies must begin measuring, documenting and disclosing greenhouse gas emissions under the new climate disclosure framework.
If your organisation falls into Group 2 or Group 3, the time to prepare is now. Many companies are discovering that the biggest challenge isn’t the disclosure itself, it’s building the underlying emissions inventory and data systems needed to support it.
Evalue8 helps organisations build a practical, audit-ready emissions reporting framework covering:
• Scope 1 emissions
• Scope 2 electricity emissions
• Scope 3 value chain emissions
• Organisational and operational boundary definition
• Assurance-ready documentation
Who Needs to Prepare?
The new reporting requirements apply to companies captured under amendments to the Corporations Act 2001 and reporting under AASB S2 Climate-related Financial Disclosures.
Group 2 companies (commencing FY26)
Organisations with:
• $200M+ revenue
• $500M+ assets
• 250+ employees
Group 3 companies (commencing FY27)
Organisations with:
• $50M+ revenue
• $25M+ assets
• 100+ employees
If your organisation meets two of these thresholds, mandatory climate disclosures will apply. Preparation typically takes 3 to 6 months, particularly if Scope 3 emissions need to be quantified.
What Companies Must Disclose
Mandatory climate reporting requires organisations to disclose a complete greenhouse gas inventory, including:
Scope 1
Direct emissions from fuel combustion and owned assets.
Examples:
• Diesel used by company vehicles
• Natural gas in facilities
• Refrigerant leakage
Scope 2
Indirect emissions from purchased electricity.
Examples:
• Office electricity consumption
• Warehouse electricity use
• Electricity used at project sites
Companies must report:
• Location-based emissions
• Market-based emissions (if renewable contracts exist)
Scope 3
Value chain emissions occurring outside the organisation’s direct operations.
For most companies, Scope 3 represents 80% to 95% of total emissions.
Typical categories include:
• Purchased goods and services
• Upstream transport and logistics
• Waste generated in operations
• Business travel
• Employee commuting
• Investments and joint ventures
Scope 3 reporting is often the most complex part of compliance because it requires gathering data from suppliers and financial systems.
CLIMATE REPORTING READINESS KIT
Get practical templates and frameworks to give you a clear starting point for building a compliant emissions inventory.
• Emissions boundary decision framework
• Scope 1 and 2 data collection checklist
• Scope 3 category materiality guide
• Emissions data request register template
• Emissions data mapping framework
• Emissions calculation workbook structure
• Disclosure-ready emissions tables template
• Assurance evidence index example
Our Approach
Evalue8 helps organisations move from uncertainty to an audit-ready emissions inventory. Our implementation framework focuses on five core steps.
1. Define the Emissions Boundary
We help determine:
• organisational boundary
• operational boundary
• treatment of subsidiaries and joint ventures
Deliverable:
Boundary determination memo
2. Identify Emission Sources
We map all relevant emission sources across:
• fuel use
• electricity consumption
• value chain activities
Deliverable:
Emissions source register
3. Build the Data Framework
We establish a practical data collection system across:
• finance
• procurement
• operations
• facilities management
Deliverable:
Emissions data mapping framework
4. Calculate Scope 1, 2 and 3 Emissions
Using recognised calculation methodologies aligned with international standards.
Deliverables:
• Emissions calculation workbook
• Emissions inventory tables
• Methodology documentation
5. Prepare Disclosure-Ready Outputs
We prepare documentation suitable for:
• financial reporting
• internal governance
• external assurance
Deliverables:
• Disclosure-ready emissions tables
• Assumptions and methodology register
