The Australian Securities & Investments Commission (ASIC) has issued early observations on the first year of mandatory reporting under the country's ISSB-aligned climate standard (AASB S2).
Overall, it found “an increase in the quantity and quality of climate-related financial information in the market” compared with previous years, and praised reports that used diagrams and tables to present information.
ASIC also offered recommendations for further improving disclosures:
- Companies should not use disclaimers that conflict with the statutory framework
- Reports should provide clear and proximate disclosure of judgements, assumptions and areas of measurement uncertainty
- Disclosure of additional climate information must not obscure material climate-related financial information
- Reports must meet disclosure requirements when cross-referencing other information
- The definition of targets extends to those that the company is required to meet by law or regulation
Further observations on the first year of reporting in line with AASB S2 will be published in the second half of 2026.
The Australian Securities & Investments Commission (ASIC) has issued early observations on the first year of mandatory reporting under the ISSB-aligned climate standard (AASB S2).
Overall, it found “an increase in the quantity and quality of climate-related financial information in the market” compared with previous years, and praised reports that used diagrams and tables to present information.
ASIC also offered recommendations for further improving disclosures:
- Companies should not use disclaimers that conflict with the statutory framework
- Reports should provide clear and proximate disclosure of judgements, assumptions and areas of measurement uncertainty
- Disclosure of additional climate information must not obscure material climate-related financial information
- Reports must meet disclosure requirements when cross-referencing other information
- The definition of targets extends to those that the company is required to meet by law or regulation
Further observations on the first year of reporting in line with AASB S2 will be published in the second half of 2026.