Group 2 AASB S2 mandatory climate reporting starts 1 July 2026. Three months remain. Priority engagement now available.
AASB S2 & Mandatory Climate Reporting

AASB S2 Mandatory Climate Reporting Support for Queensland Group 2 Entities

Fixed-fee support. On-site when you need it. No big-four billing rates.

Group 2 entities must begin capturing climate-related financial data from 1 July 2026, with the first ASIC-enforceable disclosure report due October 2027. Aethiro delivers structured, end-to-end AASB S2 support alongside your existing legal and financial advisers, not instead of them.

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What Is AASB S2 and Why Does It Matter Now?

AASB S2 is Australia's mandatory climate reporting standard, administered by ASIC. It is not a voluntary ESG report. It sits inside your annual financial report and carries the same weight as any other mandatory financial reporting obligation. The board is directly accountable for the governance framework it describes. Non-compliance is a financial reporting failure, not an administrative oversight.

The standard covers four mandatory pillars: governance, strategy, risk management, and metrics and targets. Each requires documented evidence, verifiable data, and structures that take months to build. Even if your own mandatory date is July 2027, your clients and supply chain partners are already asking for your climate data to meet their own obligations. That pressure is already here.

Is this right for your business?

If your board, auditors, or CFO have raised AASB S2 in the last twelve months, you are not alone. From 1 July 2026, Group 2 entities are legally required to produce climate-related financial disclosures under the Australian Sustainability Reporting Standards, administered by ASIC. Group 3 entities follow from 1 July 2027.

This service is for companies that are directly caught by mandatory reporting, or are preparing ahead of their obligation date. That includes mid-market Queensland businesses in resources services, construction, logistics, food processing, and agribusiness groups operating at scale.

It also catches businesses that may not realise they are in scope. If your corporate group is a registered NGER reporter, you are automatically Group 2 regardless of revenue or headcount. Energy-intensive operations in Central Queensland and the Bowen Basin often trigger this pathway, as do sugar mills across the Mackay, Bundaberg, and Burdekin regions, which are common NGER reporters due to their milling and cogeneration operations.

Group 1 entities already in their first reporting year may need Scope 3 data architecture, supplier engagement programs, or assurance readiness support. We can help with that too.

Group 2 Mandatory from 1 July 2026. Three months is not much time to build a governance framework, risk committee, and data system from scratch. Priority engagement is available for entities starting now.

Group 3 Mandatory from 1 July 2027. That twelve-month window is the only advantage left in this process. Every month you spend building governance structures and data systems now is a month of verified, defensible data you will have when your deadline arrives. Waiting costs more than starting.

Check your reporting group

Under ASIC's mandatory climate reporting framework, you are caught by size thresholds if you meet two of the three criteria below on a consolidated group basis. NGER reporters are automatically Group 2 regardless of size. Answer all four questions for an accurate result. Open the full standalone tool →

NGER registration: Does your corporate group lodge NGER reports with the Clean Energy Regulator?
1. Consolidated annual revenue
2. Consolidated gross assets
3. Number of employees
Indicative only. Thresholds apply on a consolidated group basis. Confirm your obligations with your legal and financial advisers.

How it works

A structured, three-phase engagement covering all mandatory climate reporting requirements under AASB S2 and the Australian Sustainability Reporting Standards (ASRS). Fixed-fee after a free scoping discovery session. No hourly billing. No surprises.

  1. Phase 1: Governance and Materiality Foundation. Reporting eligibility confirmation and entity structure mapping. Board and senior stakeholder engagement. Climate governance framework design, risk committee structure, and accountability framework. Materiality assessment across all four AASB S2 pillars. Supply chain and operational risk identification.
  2. Phase 2: Data Discovery and Climate Risk Assessment. Scope 1 and 2 emissions baseline measurement. Data system architecture built into your existing finance and operational processes. Climate scenario analysis covering physical and transition risks. Scope 3 materiality assessment and supply chain engagement program.
  3. Phase 3: Disclosure Preparation and Reporting. Draft AASB S2 and Australian Sustainability Reporting Standards (ASRS) aligned climate disclosure, structured for your annual financial report and assurance review. Assurance-readiness review. Handover documentation for ongoing annual reporting cycles.

Why Aethiro for AASB S2

Big-four firms have the brand. Aethiro has the technical depth, the regional presence, and the price point that works for mid-market entities.

On-Site When You Need It

Accurate data requires seeing your operations, not just your spreadsheets. We travel to your sites across Regional Australia for verification and stakeholder engagement.

Fixed-Fee After Scoping

Full cost agreed before work begins. No hourly billing. No scope creep. A clear proposal with deliverables and timeline after a free discovery session.

Works Alongside Your Advisors

We handle the carbon and climate technical work. Your lawyer, auditor, and CFO keep doing their jobs. No legal overlap. No financial advisory conflict.

Regional Industry Specialist

AASB S2 looks different in a Bowen Basin mine, a Pilbara operation, or an agribusiness group than in a city office. We understand your sector and operating context.

Fast Mobilisation

Large consulting firms have multi-week onboarding. We can begin the scoping session within days of your enquiry and start substantive work within two weeks of engagement.

Significantly Below Big-Four Rates

Same technical rigour, without the overhead. AASB S2 compliance should not cost as much as the system it describes. Structured for mid-market budgets.

What changes when you engage now

The board is exposed with no governance framework, no risk committee, and no accountability structure in place before the July 2026 mandatory deadline

A documented climate governance structure with board-ready accountability framework and risk committee terms of reference, delivered before your first reporting period.

Banks, insurers, and major clients keep asking for ESG data you don't have

Structured climate and emissions data you can use to respond to any ESG questionnaire, loan covenant, or client request.

July 2026 is three months away with no governance framework, no data systems, and no measurement processes in place before the reporting period begins

A structured engagement that has your reporting infrastructure operational before 1 July 2026, so every month of data captured across the reporting year is documented and auditor-ready for your first disclosure in October 2027.

Frequently Asked Questions

If your consolidated group meets two of three thresholds ($200M+ revenue, $500M+ gross assets, or 250+ employees) you are a Group 2 reporter from 1 July 2026. Group 3 follows at lower thresholds from 1 July 2027. Use the checker above, then confirm with your legal advisers.
If your corporate group already lodges NGER reports, you are automatically Group 2 under AASB S2 from 1 July 2026, regardless of revenue or headcount. This catches energy-intensive Queensland operations that sit below the size thresholds but above the energy or emissions threshold.
ESG is a broad term covering many voluntary and mandatory frameworks. AASB S2 is a specific, mandatory Australian standard for climate-related financial disclosures. It sits inside your annual financial report and is administered by ASIC, not a separate voluntary document. Once you have AASB S2 compliant data, you can respond to any ESG questionnaire, loan covenant, or supply chain request from the same dataset.
AASB S2 requires technical carbon and climate work that sits outside legal and financial audit scope. Your auditor will sign off on the disclosure; Aethiro builds the underlying data systems, governance framework, and climate risk assessment that makes the disclosure accurate and defensible. We work alongside your existing advisers. There is no legal or financial overlap.
Three months is tight but workable. The first reporting period starts 1 July 2026, and your first disclosure report is due approximately October 2027. What must be in place before July 2026 is your governance framework, risk committee structure, and data capture systems so that every month of data from day one is documented and defensible. Data you fail to capture from July 2026 cannot be reconstructed retroactively. The first step is a free scoping call to assess your entity structure, existing data, and governance readiness. Priority scheduling is available for entities starting now.
After a free scoping discovery session, Aethiro provides a fixed-fee proposal covering the full engagement: scope, deliverables, timeline, and total cost agreed before any work begins. No hourly billing surprises. For entities with complex structures, multiple sites, or trust arrangements, the scoping session establishes the full picture before any commitment is made. Structured for Group 2 budgets, not big-four billing rates.

Ready to start your AASB S2 engagement?

Book a free scoping call. We will confirm your reporting group, assess your starting position, and give you a clear picture of what needs to be in place before 1 July 2026 and your path to first disclosure in October 2027. No obligation. Priority scheduling available for entities contacting us now.