5 ways to prepare for Australia’s mandatory climate reporting

Australia’s corporate climate reporting landscape has shifted irreversibly. With Australia’s mandatory climate reporting beginning on 1 January 2025 under AASB S2, many entities are now required to disclose climate-related risks and opportunities within their financial statements. As regulatory focus intensifies and investor scrutiny grows, the time to act is now. eco‑shaper offers an intelligent, user-friendly solution, complete with automatic Scope 3 carbon calculations and a comprehensive Australian regional emissions database to help your organisation stay compliant and ahead of the curve.

Why Australia’s mandatory climate reporting is coming and when

Australia’s mandatory climate disclosures started on 1 January 2025, following the passage of the new sustainability reporting regime under the Corporations Act. The first entities required to report are the largest companies, those preparing Chapter 2M financial reports (typically listed or large proprietary companies) or participating in the National Greenhouse and Energy Reporting (NGER) scheme. These businesses are now required to publish sustainability reports aligned with the AASB S2 standard.

The rollout is phased based on company size and complexity:

• Group 1 (from 1 January 2025): Large listed companies, financial institutions, and other high-emission entities.
• Group 2 (from 1 July 2026): Mid-sized companies that meet specific financial or emissions thresholds.
• Group 3 (from 1 July 2027): Smaller companies brought into scope as reporting expands.

This framework is detailed in the official AASB S2 standard documentation and supported by guidance from ASIC, who will oversee compliance.

Understanding AASB S2 and scope 3 emissions

AASB S2 introduces mandatory disclosures for climate governance, risk, and opportunity, bringing transparency to business exposure and strategy. Most notably, it includes Scope 3 emissions, which account for upstream and downstream activities in a company’s value chain. These are often the largest share of emissions, particularly in services, manufacturing, and logistics.

The AASB’s official knowledge hub provides clarity for organisations just beginning this journey, while the Australian Climate Council underscores the importance of transparency in indirect emissions reporting.

ASIC climate reporting guidance you need to know

ASIC issued Regulatory Guide 280 (RG 280) to clarify expectations for climate-related disclosures. Their approach encourages a proportional, industry-sensitive application of AASB S2 while maintaining the obligation for reliable and consistent reporting.

You can access the full RG 280 guidance on ASIC’s sustainability reporting page. Organisations failing to meet these expectations may be subject to regulatory enforcement, especially where climate disclosures are materially misleading.

Five ways to get climate reporting ready

1. Conduct a gap analysis: Evaluate your reporting practices against AASB S2. Understand where Scope 3 data, governance, or scenario analysis may be lacking.
2. Secure accurate baseline data: eco‑shaper offers the most comprehensive Australian regional emissions database, ensuring your inputs reflect actual, location-specific impacts.
3. Implement data tracking tools: Our platform connects to your existing systems, allowing for automated updates and reducing the risk of manual errors.
4. Build internal capability: Educate teams about carbon accounting standards, emissions boundaries, and assurance readiness. Use insights from AICD’s guide to climate reporting to align boardroom strategy.
5. Align strategy and reporting: Ensure climate risk and opportunity disclosures are integrated into your broader risk and financial governance frameworks.

How eco‑shaper helps you comply and simplify

eco‑shaper makes climate reporting in Australia straightforward and defensible. Our tools offer:

• Fully automated Scope 3 calculations, aligned with AASB S2
• Australia-specific emissions factors down to regional levels
• Scalable workflows for SMEs, listed entities, and enterprise groups
• Dashboards and audit trails for sustainability, and assurance teams

Organisations looking to simplify compliance will find eco‑shaper particularly useful as they navigate the evolving requirements from ASIC and the Australian Treasury.

Conclusion

Preparing for mandatory climate disclosures isn’t just about compliance, it’s about building resilient, transparent organisations that can lead in a low-carbon economy. As the first deadline approaches, those who act now will be best positioned to meet both regulatory and stakeholder expectations.

Ready to streamline your climate reporting with trusted Australian data and dynamic Scope 3 insights? Book a demo call with eco‑shaper to see how we make compliance simple and accurate.