Amended relief for specific GHG emission disclosures
The AASB has approved amendments regarding specific greenhouse gas emissions disclosure requirements under AASB S2
For Australian entities, particularly for NGER reporters and financial institutions, these amendments ease implementation challenges by supporting closer alignment with existing regulatory and measurement framework (NGER) and reducing Scope 3 Category 15 complexity
On 15 December 2025, the Australian Accounting Standards Board (AASB) approved amendments to AASB S2 Climate-related Disclosures (AASB S2). These amendments mirror the International Sustainability Standards Board’s (ISSB) recent amendments to IFRS S2 Climate-related Disclosures (IFRS S2).
The amendments are effective for annual reporting periods beginning on or after 1 January 2027, with early application permitted.
The amendments to AASB S2:
- Clarify that the existing relief allowing the use of a Greenhouse Gas (GHG) measurement method other than the Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (2004) also applies where the jurisdictional requirement applies to only part of the reporting entity
- Allow the use of global warming potential (GWP) values other than those from the latest Intergovernmental Panel on Climate Change (IPCC) assessment where an entity or part of an entity has a jurisdictional requirement to use those values
- Allow entities to exclude from Scope 3 Category 15 GHG emissions amounts related to derivatives, facilitated emissions and insurance-associated emissions
- Provide relief from the requirement to use the Global Industry Classification Standard (GICS) when disaggregating financed emissions
- On transition, require adjustments to comparative information where the original requirements of AASB S2 have already been applied to a previous period
For Australian entities these amendments ease implementation challenges by supporting closer alignment with existing regulatory and measurement frameworks (NGER) and reducing Scope 3 Category 15 complexity.
Entities affected by these amendments (particularly Group 1 entities that are NGER reporters or financial institutions) should familiarise themselves with these amendments andconsider opportunities available from early adoption.
Under section 336A(3) of the Corporations Act 2001, entities electing to apply the amendments early would be required to document the early adoption election in writing by the directors. This is usually actioned by a directors’ resolution to adopt the amendments early.
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Alison White
Moana Overton
