What is AASB S2
and why does it matter?
AASB S2 is Australia’s mandatory climate reporting standard, issued by the AASB in September 2024 and modelled on IFRS S2. It requires entities to disclose climate-related risks and opportunities across four pillars: Governance, Strategy, Risk Management, and Metrics and Targets.
Disclosures form part of your annual sustainability report, lodged alongside financial statements. Enforcement sits under the Corporations Act 2001 and the ASIC Act — criminal liability applies from day one.
A three-year modified liability regime (to 31 December 2027) reduces legal exposure for the most uncertain disclosures — but directors must still sign a compliance declaration covering all disclosures.
The four mandatory
disclosure pillars
Every AASB S2 sustainability report must address four pillars.
Governance and Scope 1 & 2 emissions are subject to limited assurance from Year 1.
Governance
How the board and management oversee climate-related risks and opportunities — including responsibilities, skills, reporting lines and oversight processes.
Strategy
How climate risks and opportunities affect your business model, value chain, financial position and forward strategy — including scenario analysis and resilience assessment.
Risk Management
How your organisation identifies, assesses, prioritises and monitors climate risks, and how those processes integrate with your enterprise risk management framework.
Metrics & Targets
Seven mandatory metrics including Scope 1, 2 & 3 emissions, physical and transition risk exposure, capital deployment, internal carbon price and remuneration linkage.
End-to-end AASB S2 services
We support organisations across every stage of their AASB S2 journey — from governance readiness through to a final, auditor-ready disclosure report.
Governance Advisory & Board Training
Map governance against AASB S2. Document board and management climate oversight. Tailored director training — mandatory for audit readiness.
Climate Risk Assessment & Scenario Analysis
Two AASB S2-aligned climate scenarios (1.5°C and >2°C). Facilitated cross-functional risk workshop. CRRO assessment report with financial effects.
Sustainability Report Preparation
Complete AASB S2-compliant disclosure report — all four pillars. Compliance index, directors’ declaration support, notes to climate statements.
Emissions Data & Factors Review
Review completeness and quality of Scope 1, 2 & 3 data and emission factors against NGER, GHG Protocol and NGA Factors. Gap findings and recommendations.
Auditor Liaison & Assurance Readiness
Prepare RFI evidence packages. Map assurance requests to report sections. Attend Big 4 assurance meetings on your behalf.
Gap Assessment & Readiness Review
Structured readiness assessment against AASB S2. Identify gaps in governance, emissions data, risk processes and disclosure content. Prioritised remediation roadmap.
Industries we have supported
with AASB S2 and ASRS
Climate-related risks look different across every sector. Our team brings industry-specific knowledge to every engagement.
Transport & Logistics
Freight carbon pricing, CBAM, fleet transition
Manufacturing
Process emissions, decarbonisation capex, insurance
Agriculture & Food
Water scarcity, grower risk, extreme weather
Wine & Beverages
Supply chain risk, water entitlements, CBAM
Fuel & Energy
Carbon pricing, stranded assets, NGER obligations
Healthcare & Retail
Facilities, supply chain, customer market shifts
Wholesale & Distribution
Cold chain, logistics risk, supplier pass-through
Technology & Professional Services
Grid emissions, data centres, talent risk
A best-in-class AASB S2 climate risk assessment experience.
Impact HQ demonstrated exceptional expertise and commitment in conducting a comprehensive climate-related risk assessment for Quantem. From the very beginning, they took the time to thoroughly understand our business operations, industry challenges, and specific climate vulnerabilities, ensuring their analysis was tailored to our needs.
Their approach was not only methodical and data-driven but also deeply insightful, identifying risks and opportunities that went beyond our initial expectations. The team was highly professional, detail-oriented, and proactive, delivering everything on time and exactly as promised — and the comprehensiveness and quality of their report far exceeded our expectations.
Their findings and recommendations provided clear, actionable insights that will help us strengthen our climate resilience strategy moving forward. We would highly recommend Dr Richa and Impact HQ to any organisation seeking best-in-class expertise in climate risk assessment and sustainability strategy.
GHG Protocol · TCFD · SBTi
Our engagement process
A structured, evidence-led approach designed to produce disclosures that are auditor-ready from day one.
Readiness Assessment
Structured gap assessment against AASB S2. Review existing governance, emissions data, risk frameworks and prior sustainability reporting.
Governance Documentation
Map board and management climate oversight. Produce AASB S2-compliant governance documentation. Deliver director training. All outputs designed to withstand auditor scrutiny.
Climate Risk & Scenario Analysis
Two AASB S2-aligned scenarios. Sector-specific research, stakeholder interviews and cross-functional risk workshop. CRRO assessment report with financial effects.
Disclosure Report Drafting
Complete AASB S2-aligned sustainability report covering all four pillars. Built on executed governance documents and evidenced risk findings — not templates.
Assurance Support & Lodgement
Prepare evidence package for limited assurance. Respond to auditor RFI. Coordinate final report for board approval and ASIC lodgement.
Technical rigour,
practical outcomes
PhD-led advisory
Led by Dr Richa Vijayraj — GRI Certified Sustainability Professional, ISO 14064-certified carbon emissions specialist, with deep experience across Australian climate risk and ASRS reporting.
Standards aligned
Fluent in AASB S2, AASB S1, ASSA 5010, GHG Protocol, NGER methodology, TCFD, SBTi, APCO and ISO 14064/14067. Every disclosure is traceable to the standard it satisfies.
Big 4 assurance alignment
Experienced preparing evidence packages and RFI responses for Deloitte, KPMG, EY and PwC limited assurance engagements. We design deliverables to withstand auditor scrutiny.
Sector-specific expertise
Proven track record across transport, logistics, manufacturing, agriculture, energy and food and beverage — where physical and transition climate risks are most material.
Evidence-first approach
Every disclosure claim is anchored in an executed document — board minutes, governance charters, circulating resolutions or risk assessments. No unverified assertions.
Independent & conflict-free
We are not your assurance provider — meaning our outputs can be reviewed by any Big 4 or mid-tier firm without conflict of interest, and you retain full independence.