Glossary term
Cluster C · C3
Tier 2
IFRS S2
Definition
IFRS S2 Climate-related Disclosures is the international climate disclosure standard issued by the International Sustainability Standards Board. AASB S2 is based on it with Australian modifications. An entity complying with AASB S2 is not automatically compliant with IFRS S2 and should not claim compliance with both without checking the differences.
ISSB
· IFRS S2 ·
International
On this page
In practice
This matters where an Australian entity has an overseas parent, overseas investors, or a listing in a jurisdiction that has adopted IFRS S2 directly. The two texts are close but not identical, and a claim of IFRS S2 compliance made in an Australian report is a statement that can be tested.
What the assurer does with it
The assurer reads the compliance statement literally. A statement of compliance with IFRS S2 is a claim about the whole standard, including the industry-based metrics requirements the Australian text deletes, so it brings work into scope that the statutory obligation does not require.
They accept a single, accurate statement of compliance with AASB S2, and a separate clearly labelled statement about group reporting under IFRS S2 where one is genuinely made. They reject a dual-compliance claim with no analysis of the differences behind it, and a basis of preparation naming IFRS S2 as the standard applied to an Australian statutory sustainability report.
Commonly confused with
AASB S2, which is the instrument the Corporations Act requires. Also confused with the assumption that group reporting under IFRS S2 satisfies the Australian obligation, which it does not on its own.
Sources
1
2
3
Review status
Review required
Last reviewed
15 September 2026
Editorial pass, unsigned
Reviewer required
Registered company auditor
Next scheduled review
1 July 2027
Part of
Cluster C, AASB S2 disclosure requirements / AASB S2 mechanics
25 terms on what the climate disclosure standard actually requires, pillar by pillar, plus the reliefs and the effort standard.
Related terms
The Australian instrument that actually creates the obligation
The specific differences that change what you disclose
The seven metrics that survive in the Australian text
Related questions
We are foreign-owned. Does the Australian entity report?
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Yes, if the Australian entity has its own Chapter 2M financial reporting obligation and meets a section 292A test, because it is tested on its own consolidated numbers rather than the global group’s. Foreign ownership is not a factor in section 292A. A parent’s climate report prepared overseas does not automatically discharge the Australian obligation.
Do we have to do mandatory climate reporting?
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You must prepare a sustainability report if you already lodge a financial report under Chapter 2M of the Corporations Act and you also meet one of the size, NGER or funds-under-management tests in section 292A. Both gates have to be passed: with no Chapter 2M obligation, section 292A never engages however large you are. Which of the three reporting groups you fall into decides which financial year is your first.
Other terms in this cluster
IFRS S2