AASB S2 Group 2 mandatory climate reporting begins for annual reporting periods starting on or after 1 July 2026. If your organisation meets at least two of three thresholds, $200 million in revenue, $500 million in gross assets, or 250 employees, you now have to disclose climate-related risks, opportunities, and greenhouse gas emissions.
Group 2 is a far larger cohort than the Group 1 entities that reported first, and it captures many businesses that have never produced a climate disclosure. The reporting clock has already started, even though your first report will not be lodged until it goes out with your FY2026-27 annual report.
This guide covers who is captured, what Group 2 entities have to disclose, when the first reports are due, how assurance phases in, and what to put in place now so your Scope 1 and Scope 2 data is ready.
What Is AASB S2 and the ASRS Regime?
AASB S2 is Australia's climate-related financial disclosure standard, built on the ISSB's IFRS S2. It sits within the Australian Sustainability Reporting Standards, which bring mandatory reporting in by group, largest entities first.
Group 1 entities, Australia's largest companies and financial institutions, have been reporting since periods starting 1 January 2025. Group 2 is the next wave. For what the first cycle taught the market, read our review of Australia's first ASRS reports.
Are You a Group 2 Entity?
You are a Group 2 entity if, for the financial year, you meet at least two of these three thresholds:
- Revenue: consolidated revenue of $200 million or more.
- Gross assets: end-of-financial-year gross assets of $500 million or more.
- Employees: 250 or more employees at year end.
Two other limbs also pull you in: having National Greenhouse and Energy Reporting (NGER) obligations below the Group 1 publication threshold, or being an asset owner with $1 billion to $5 billion under management. If you already lodge an NGER report, assume you are in scope and confirm the detail.
What Must Group 2 Entities Disclose?
AASB S2 uses the same four-pillar structure as the ISSB standard. You report against each:
- Governance: how the board and management oversee climate-related risks and opportunities.
- Strategy: the climate risks and opportunities that could affect the business, including scenario analysis of your resilience.
- Risk management: how you identify, assess, and manage those risks, and how that connects to your wider risk process.
- Metrics and targets: your Scope 1 and Scope 2 greenhouse gas emissions from the first year, plus any climate targets you have set.
Scope 3 emissions, the indirect emissions across your value chain, get a one-year reprieve. They are not required in your first year and become mandatory from your second reporting period.
When Are the First Reports Due, and What Relief Applies?
The obligation attaches to the first annual reporting period starting on or after 1 July 2026. For a 30 June balance date, that is FY2026-27, and the sustainability report is lodged alongside the annual financial report, so most Group 2 entities file their first report in late 2027.
The standard builds in transitional relief to make the first year workable. Scope 3 is deferred to year two, and there is time-limited protection on forward-looking statements and Scope 3 disclosures while methods mature. None of that is a reason to wait, because the data systems have to be running from the start of the period.
How Does Assurance Phase In?
Climate disclosures are assured, and the requirement steps up over time:
- Year 1: limited assurance over your Scope 1 and Scope 2 emissions.
- Years 2 to 3: limited assurance extends across all AASB S2 disclosures.
- From 1 July 2030: reasonable assurance over all climate-related financial disclosures.
Limited assurance still means an auditor tests your numbers and your methodology. Your Scope 1 and Scope 2 figures need a clear trail from source data to the reported total, from day one.
How Utilified Helps Group 2 Entities Prepare
The hard part of Group 2 reporting is rarely the disclosure template. It's producing Scope 1 and Scope 2 numbers you can stand behind, across every site, with the evidence an assurer will ask for.
Utilified's Utility Management System (UMS) brings every utility into one unified system. It collects and validates electricity, gas, and other utility data from invoices, meters, and retailer portals, then matches each data point to the right facility, period, and emission factor. That gives you one source of truth for the energy data behind your Scope 1 and Scope 2 figures.
Because every number keeps its audit trail from source invoice to reported emission, limited assurance becomes a review of a clean dataset rather than a scramble through spreadsheets. For groups reporting across many sites, and for consultants preparing disclosures for several clients, that turns a once-a-year crisis into continuous, validated data your teams can turn into decisions.
See how UMS handles emissions data →
Book a demo to get your Scope 1 and 2 data ready for AASB S2 →
Frequently Asked Questions
When does AASB S2 Group 2 reporting start?
Group 2 reporting applies to annual reporting periods beginning on or after 1 July 2026. For a 30 June balance date, that means FY2026-27, with the first report lodged in late 2027.
What are the AASB S2 Group 2 thresholds?
You are in Group 2 if you meet at least two of: $200 million in consolidated revenue, $500 million in gross assets, or 250 employees. NGER reporters below the Group 1 threshold and asset owners with $1 to $5 billion under management are also captured.
Do Group 2 entities have to report Scope 3 emissions?
Not in the first year. Scope 3 gets a one-year relief and becomes mandatory from your second reporting period. Scope 1 and Scope 2 are required from year one.
What level of assurance is required in the first year?
Limited assurance over Scope 1 and Scope 2 emissions in year one. It widens to all AASB S2 disclosures across years two and three, and steps up to reasonable assurance from 1 July 2030.
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