AASB S2 in Practice: Early Structural and Governance Insights from Australia’s First Climate Reporters

For the first time, large Australian organizations are subject to mandatory, assured climate reporting – and the first 23 ASX300 companies to comply with Australian Accounting Standards Board (AASB) S2 have now published their first statements. Their disclosures offer a practical guide on where market norms are heading.  

"Regardless of emissions intensity, companies will increasingly be expected to demonstrate structured, Board‑level oversight of climate‑related risks and opportunities, with clear accountability and integration into strategic and financial decision‑making."

Key findings from the first cohort 

Reports are growing longer and more technically demanding, with an average increase of 14.5 pages relative to equivalent climate disclosures in 2024. But behind the page counts lies a more revealing story about where governance is maturing, and where significant gaps remain: 

• Every first reporter has positioned climate as a Board-level issue – yet more than one in three are yet to formalise this in their Board charters. 

• Nearly 40% have not invested in structured climate training, raising questions about how complex climate judgements are being made in practice. 

• Almost half (48%) have no climate metrics included in executive remuneration, and where they do, the focus skews toward short-term delivery rather than long-term value creation. 

Materials and Energy companies are setting an early benchmark 

Comprising 43% of the first cohort, these companies are setting a standard that we believe others will be expected to follow: 

• All have a dedicated Sustainability-related Committee with climate oversight, compared with just 23% in other sectors. 

• 90% link executive remuneration to at least one climate KPI, against 23% in other sectors. 

• 60% disclose structured Board or committee-level climate education, with training more commonly externally facilitated (50% vs. 15%) and embedded into ongoing agendas (40% vs. 8%) rather than delivered as a one-off. 

Expectations are rising 

The market is moving beyond whether organisations comply, towards how credibly climate governance is embedded and connected to financial decision-making. For Group 2 and 3 reporters, early movers are already setting the benchmark. Our 16-page analysis of the first AASB S2 reports unpacks how compliance is being interpreted in practice and what separates credible disclosure from a tick-box exercise. Download AASB in Practice: Early Structural & Governance Insights from Australia’s First Climate Reporters to ensure your first AASB S2-aligned report meets the expectations the market is already forming.