Mandatory AASB S2 sustainability reporting, made investor-ready
Lever Impact delivers AASB S2 and IFRS S2 sustainability reporting for Australian companies — helping boards and CFOs meet mandatory climate disclosure obligations with finance-led, assurance-ready frameworks.
Meeting IFRS and AASB climate disclosure requirements by embedding climate-related financial insights into governance, strategy, and risk frameworks — turning reporting obligations into investor-grade information that builds trust, transparency, and enterprise value.
Australian companies must prepare mandatory climate-related financial disclosures under AASB S2 (aligned to IFRS S2) for reporting periods beginning from 1 January 2025 (Group 1), 1 July 2026 (Group 2), and 1 July 2027 (Group 3). Lever Impact, a chartered accounting firm, delivers assurance-ready, investor-grade sustainability reports that satisfy Corporations Act obligations while strengthening capital access and board confidence.
Why climate disclosure matters
The introduction of AASB S2, aligned with IFRS S2, marks a turning point in corporate reporting — requiring entities to disclose how climate risks and opportunities affect their financial position, performance, and strategy. Whether you are a Group 1 entity preparing for mandatory disclosure, or a PE-backed or privately held company seeking to build climate confidence with investors and lenders, credible sustainability reporting is now central to capital access and valuation. At Lever Impact, we translate complex reporting requirements into practical, finance-led processes.
What AASB S2 requires — and when it applies to your organisation
Australia's mandatory climate reporting regime, enacted through the Treasury Laws Amendment Act 2024 and embedded in the Corporations Act 2001, requires in-scope entities to prepare an annual Sustainability Report alongside their financial statements. The standard — AASB S2 — is aligned with the IFRS Sustainability Disclosure Standards (ISSB S2) and covers four disclosure pillars: Governance, Strategy, Risk Management, and Metrics & Targets.
Mandatory reporting timeline
- Group 1 — Reporting periods beginning on or after 1 January 2025. Applies to entities with $500m+ revenue, $1bn+ assets, or 500+ employees (two of three thresholds).
- Group 2 — Reporting periods beginning on or after 1 July 2026. Applies to entities meeting two of: $200m+ revenue, $500m+ assets, or 250+ employees; also captures all other NGER reporters and asset owners with $5bn+ assets.
- Group 3 — Reporting periods beginning on or after 1 July 2027. Applies to entities with $50m+ revenue, $25m+ assets, or 100+ employees.
Director liability
Sustainability disclosures sit within the Corporations Act and carry the same legal weight as financial statements. False or misleading climate statements may attract civil penalties — for a body corporate, the greatest of approximately $15.5 million, three times the benefit obtained, or 10% of annual turnover. A three-year modified liability period (from 1 January 2025) applies to disclosures of Scope 3 emissions, scenario analysis and transition plans: during that window only the entity is liable for those items, while other disclosures carry normal liability from the outset. Directors remain accountable for climate disclosures, as they are for the financial statements.
How Lever Impact approaches sustainability reporting
Lever Impact's reporting advisory is built by chartered accountants who apply a finance lens — not a compliance-only lens — to every engagement. We embed climate-related financial insights directly into your governance, strategy, and risk frameworks, turning disclosure obligations into decision-useful investor intelligence.
- Climate disclosure structures aligned to AASB S2, ISSB S1/S2, TCFD, GHG Protocol, SASB, and GRI
- Scenario analysis and financial impact modelling (physical and transition risk)
- Scope 1, 2, and 3 GHG data integration into finance systems
- Materiality assessments aligned to investor and sector expectations
- Assurance readiness — internal controls, data traceability, and audit preparation
- Board and CFO workshops building governance capability for AASB S2 oversight
- Transition and resilience planning linked to funded capital strategies
Finance-Led Approach
We combine chartered accounting rigour with sustainability expertise — ensuring your disclosures withstand investor, auditor, and regulator examination.
Regulatory Alignment
Our frameworks are built around the IFRS Sustainability Disclosure Standards (ISSB S1 & S2) and local AASB S2 guidance, incorporating principles from TCFD, GHG Protocol, SASB, and GRI.
Commercial Insight
We connect sustainability metrics to your financial strategy and capital allocation, turning climate-related data into actionable business intelligence.
Assurance Ready
Lever Impact's approach builds the internal control and data traceability needed for assurance-level reporting under Australian and international standards.
- Listed and Group 1 Entities — preparing for AASB S2 climate disclosure
- Private and PE-backed Companies — seeking investor-grade sustainability reporting
- Family Offices and Institutional Investors — developing credible transition frameworks for portfolio companies
- Corporate Finance Teams and CFOs — integrating ESG metrics into budgeting, forecasting, and performance dashboards
Lever Impact Pty Ltd
Lever Impact Pty Ltd provides professional services including chartered accounting, corporate advisory, ESG transformation and sustainability advisory. Lever Impact Pty Ltd does not provide financial product advice or financial services.