AASB S2 Group 3 compliance

Mandatory sustainability reporting,
guided step by step.

Declaro guides Australian organisations through their AASB S2 materiality self-assessment — producing compliant sustainability reporting output in 3–6 hours.

Start your assessment →Learn more
Jul 2027
Group 3 mandatory deadline
3–6 hrs
To complete full assessment
4
Compliance documents generated
What is AASB S2?

Australia's mandatory climate reporting regime

AASB S2 — the Australian Sustainability Reporting Standard — requires large Australian entities to disclose their climate-related risks, opportunities, and governance arrangements as part of their annual financial reporting to ASIC.

Modelled on the ISSB's global climate disclosure framework, AASB S2 applies a financial materiality test — the question is whether a climate risk or opportunity could reasonably influence the decisions of investors, lenders, or creditors. Environmental significance alone is not sufficient.

⚖️
Corporations Act obligation
Mandatory under the Corporations Act 2001 (Cth). Failure to lodge a compliant sustainability report is a breach of your statutory obligations.
📋
ASIC oversight
Reports are lodged with ASIC alongside annual financial statements. ASIC has signalled active enforcement of the new regime.
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Director personal liability
Directors must sign a declaration confirming compliance. This creates personal legal liability — not just an organisational obligation.
Who is in scope?

Three groups, three deadlines

AASB S2 is being rolled out in three tranches. Each group has different thresholds and a different first mandatory reporting period.

Group 1Now reporting
First mandatory period
1 July 2025
In scope if you meet 2 of 3
Revenue ≥ $500M AUD, or
Assets ≥ $1B AUD, or
Employees ≥ 500
+ all NGER scheme reporters
~300 entities
Australia's largest listed companies, major super funds, and high-emitting entities subject to the NGER scheme.
Group 2Deadline imminent
First mandatory period
1 July 2026
In scope if you meet 2 of 3
Revenue ≥ $200M AUD, or
Assets ≥ $500M AUD, or
Employees ≥ 250
(meet 2 of 3)
~700–1,000 entities
Mid-to-large companies, major super funds with ≥$5B AUM, and other large unlisted entities.
Group 3This product
First mandatory period
1 July 2027
In scope if you meet 2 of 3
Revenue ≥ $50M AUD, or
Assets ≥ $25M AUD, or
Employees ≥ 100
(meet 2 of 3)
~4,000–6,000 entities
The largest tranche. Includes mid-market companies, professional firms, and smaller super funds not captured in Groups 1 or 2.
Start your Group 3 assessment →
Group 3 exemption path — what Declaro is built for

Group 3 entities that assess their business is not exposed to material climate-related risks may lodge a brief Statement of No Material Risk rather than a full report — along with documented reasons why. This is a simpler but still rigorous process. Declaro guides you through the materiality assessment and produces all required documents, including the statutory statement, reasoning narrative, and director's declaration.

How it works

Six phases, 3–6 hours, four outputs

1
~15 min
Eligibility & scoping
Confirm your Group 3 obligations and first mandatory reporting period. AI explains your specific situation.
2
~1–2 hrs
Climate risk identification
AI pre-populates relevant physical and transition risks based on your ANZSIC industry code. You review, adjust, and add.
3
~1–3 hrs
Financial materiality assessment
Score each risk through the investor-lens materiality test. AI analyses your scores. Key decision gate: material or not?
4
~30–60 min
Exemption statement
AI drafts the statutory statement, reasoning narrative, and director's declaration. Review and edit each document.
5
~1–2 wks
Review & sign-off
Shareable review workflow for CFO, legal, and board. AI runs an adequacy check before director approval.
6
~30 min
Lodgement package
Download your documents, follow the ASIC lodgement guide, and archive your evidence pack.
Get started

Ready to start your Group 3 assessment?

Declaro guides your finance team through the full AASB S2 Group 3 materiality self-assessment. No sustainability consultant required.

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Declaro is a workflow tool — not legal or professional advice.
Professional review is recommended before lodgement.