ESG Impact: Helping Australian Businesses Lead with Confidence in ESG Reporting and AASB S1 & S2 Disclosures

Sustainability and corporate transparency are no longer optional for Australian businesses. With the release of the new Australian sustainability reporting standards, AASB S1 and AASB S2, the rules of the game have changed. These standards bring ESG reporting into the same realm of accountability and rigour as financial reporting. For boards, CFOs and sustainability leaders, it is time to get serious.

From 1 January 2025, Australia’s new Climate-related Financial Disclosure regime begins. This regime will require in-scope entities to publish sustainability reports that align with the AASB S2 standard, setting out clear expectations for climate governance, strategy, risk management and performance. The companion AASB S1 standard provides the broader framework for sustainability-related financial information, helping organisations connect environmental and social impact with business results.

The changes are significant, but they also create opportunity. Businesses that move early will not only meet compliance obligations, they will build trust with investors, customers and employees. That is where ESG Impact comes in.

Who we are and what we do

ESG Impact is an Australian ESG advisory that specialises in helping businesses navigate the new reporting landscape with confidence. We have worked with more than 100 Australian organisations, ranging from large global enterprises to family-owned companies. We are sector agnostic, supporting clients across industries such as energy, manufacturing, construction, technology, finance, healthcare, retail, agriculture and professional services.

Our mission is simple. We help organisations understand what is required, build the systems to comply and use ESG reporting as a driver of business improvement rather than an administrative burden. Every client engagement is built around practicality, credibility and value creation.

Understanding AASB S1 and S2

AASB S2: Climate-related Disclosures

AASB S2 sets out what organisations must disclose about climate risks and opportunities. It covers four pillars:

• Governance – how the board and management oversee climate-related issues

• Strategy – how climate risks and opportunities impact your business model and financial performance

• Risk Management – how climate risks are identified, assessed and managed

• Metrics and Targets – greenhouse gas emissions, performance indicators and progress against climate targets

These disclosures are not about marketing language or sustainability slogans. They are about verifiable, decision-useful data that regulators, investors and auditors can rely on.

AASB S1: General Requirements for Sustainability-related Financial Information

AASB S1 provides the structure for broader ESG reporting. It guides how sustainability information is presented, ensures connectivity between financial and non-financial data and defines how materiality should be assessed. While not yet mandatory, it establishes a foundation for consistent, credible sustainability disclosure across all ESG topics, not just climate.

By adopting AASB S1 early, businesses position themselves for the inevitable expansion of ESG reporting requirements. It also shows investors and customers that the organisation takes transparency and accountability seriously.

Who needs to report and when

The mandatory regime begins with the largest entities for reporting periods starting 1 January 2025. Smaller large entities will follow in the coming years. Many Australian companies with a 30 June financial year will need to publish their first sustainability reports by June 2026.

If your organisation prepares Chapter 2M financial reports and meets certain thresholds for size, assets, or emissions, you are likely captured by the new requirements. Determining your phase and obligations is the essential first step. ESG Impact helps clients map out exactly when their first report is due and what must be included.

How ESG Impact helps your business succeed

ESG Impact provides end-to-end support, from scoping obligations to delivering your first compliant report and preparing for assurance. Our experience across more than 100 projects means we understand both the technical details and the practical realities of implementation.

Scoping and Roadmap

We begin by assessing whether and when your organisation is in scope, then design a clear roadmap to compliance. This roadmap sets out the sequence of activities across governance, data collection, scenario analysis, emissions measurement, target setting and reporting.

Building Audit-Ready Processes

Under the new regime, ESG data will be subject to assurance just like financial data. ESG Impact builds systems that are ready for audit from day one, including documentation of data sources, evidence registers, review controls and sign-off processes aligned with the new ASSA 5000 and ASSA 5010 standards.

Climate Scenario Analysis that Drives Strategy

Scenario analysis should not be a theoretical exercise. We help clients design realistic, relevant scenarios that reflect sector-specific risks and opportunities. These insights inform strategic decisions on capital investment, supply chain resilience and risk appetite.

Emissions Measurement that Stands Up to Scrutiny

Accurate emissions reporting is one of the most challenging parts of AASB S2. ESG Impact guides your business through data collection, boundary setting and methodology development for Scopes 1, 2 and 3. We create systems that can be verified and improved each year.

Targets and Transition Plans that Build Credibility

Investors and regulators are focused on credible targets, not aspirational statements. ESG Impact works with you to define measurable goals and develop transition plans that align with your financial strategy and risk profile. This reduces the risk of greenwashing and builds stakeholder trust.

Technology and Continuous Improvement

We partner with leading ESG data and reporting software providers to streamline data management and automate workflows. Our technology partnerships reduce manual effort and improve accuracy while our consulting team ensures the technology is implemented effectively and aligned with your reporting needs.

Australian Sustainability Reporting Standards (ASRS) | S&P Global

A practical timeline for getting ready for ESG Reporting Australia

For a company with a June 30 year-end, preparation should start now.

• Now to December 2025: Confirm reporting obligations, brief your Board, establish a cross-functional ESG reporting team and start gathering emissions data.

• Early 2026: Complete scenario analysis, refine data collection processes and test internal controls. Draft initial disclosures and align them with your financial reporting cycle.

• Mid-2026: Finalise your governance and strategy sections, verify metrics and targets, and perform a readiness review before submitting your first sustainability report.

ESG Impact helps clients stay on schedule with structured project management and experienced guidance throughout the process.

Common challenges and how we address them

• Treating ESG reporting like a marketing exercise. Sustainability reports now sit alongside financial statements and must meet the same standards of accuracy and evidence. We help clients embed governance and review processes to ensure credibility.

• Delaying Scope 3 measurement. You don’t need perfect data in year one, but you do need a robust plan. ESG Impact helps prioritise high-impact areas and build a pathway for continuous improvement.

• Scenario analysis with no strategic value. We ensure your analysis provides meaningful insights that can inform decision making at board and management level.

• Retroactive controls. Building controls after assurance begins is costly and inefficient. We help design controls early so your processes are compliant and efficient from the start.

• Inconsistent disclosures. Sustainability information must align with your financials. We work closely with finance teams to ensure one clear, consistent narrative across all reporting.

• Turning compliance into competitive advantage

While compliance is the initial driver, the real opportunity lies in what ESG reporting can unlock. Businesses that integrate sustainability into their strategy gain access to new funding opportunities, improve investor confidence and strengthen customer and employee loyalty. The systems you build for AASB S2 can also deliver operational savings, improved supply chain management and reduced exposure to future risks.

ESG reporting done well becomes a business asset. It builds resilience, sharpens strategy and demonstrates leadership.

The ESG Impact difference

ESG Impact combines financial and sustainability expertise to make ESG reporting practical, not painful. Our team includes finance professionals, sustainability analysts, data specialists and governance experts who understand how to bridge regulatory requirements with real-world business needs.

We have helped more than 100 Australian organisations achieve ESG readiness, from multinational corporations to family-owned enterprises. We adapt our approach to the scale, complexity and resources of each client, ensuring every project delivers lasting value.

We don’t just tell you what to do. We work alongside your team to build the capability, systems and confidence to manage ESG reporting internally year after year.

What comes next

Mandatory ESG reporting under AASB S2 is no longer on the horizon; it is here. AASB S1 will soon follow as the logical next step for broader sustainability disclosures. Organisations that start preparing now will be ready to comply, confident under assurance and well positioned for the future.

ESG Impact is here to guide you through every stage of that journey. From your first readiness assessment to your first verified report, we make ESG reporting clear, credible and achievable.

If you would like to understand what these changes mean for your business, contact the ESG Impact team for a tailored assessment.