How do you generate an AASB S2 disclosure report in Drova?

The report covers four pillars: governance, strategy, risk management, and metrics and targets, for the climate-related risks and opportunities that could reasonably be expected to affect your cash flows, access to finance or cost of capital. To produce it you need a materiality assessment, a scenario analysis, your Scope 1 and 2 greenhouse gas emissions (Scope 3 from your second reporting year) and evidence behind every statement.

RunSure is the compliance module of Drova's RunGood platform, and Reporting is where generated documents land. In RunSure you activate the AASB S2 framework, work through its clauses with Sheila drafting the requirements, attach evidence and controls, then generate the disclosure as a downloadable document. Sheila drafts; your team decides what is disclosed and lodges the report.

• Governance, strategy, risk, metrics. Every disclosure in the report sits under one of the four pillars AASB S2 carries over from IFRS S2.
• Scope 3 from the second year. Scope 1 and 2 emissions are required from year one; AASB S2 lets you leave out Scope 3 in the first year you apply the standard.
• Assurance-ready from the start. Assurance phases in under the AUASB's ASSA 5010, so each statement needs a document or a record behind it from the first year.

An AASB S2 disclosure report is built from six things: your reporting group and period, a materiality assessment, a scenario analysis, your metrics and targets, the four pillars written with evidence behind each statement, and lodgement with the annual report.

1. Confirm your group and first reporting period. Group 1 reports for financial years beginning on or after 1 January 2025, Group 2 from 1 July 2026 and Group 3 from 1 July 2027, with the size thresholds set out in ASIC Regulatory Guide 280. Your first sustainability report covers the first financial year that begins on or after your group's start date. The applicability page settles which group you are in.
2. Complete the materiality assessment. Identify the climate-related risks and opportunities that could reasonably be expected to affect your prospects, and document the process, because the process is itself a disclosure. In Drova, see How do you assess financial materiality for AASB S2?.
3. Run the scenario analysis. Test your strategy against at least two climate scenarios: one where global warming well exceeds 2 degrees Celsius above pre-industrial levels and one limited to 1.5 degrees, as RG 280 sets out. AASB S2 asks for an approach commensurate with your circumstances, and the scenarios, method and assumptions you used are disclosed.
4. Gather the metrics and targets. Scope 1 and 2 greenhouse gas emissions, Scope 3 from the second year, any internal carbon price, remuneration links and the targets you have set, with the basis for each.
5. Write the four pillars with evidence behind each statement. Board oversight and management roles; how climate affects the business model and financial position; how risks are identified, assessed and managed; the numbers. The AASB S2 disclosures checklist lists what each pillar asks for, and How do you build an evidence trail for AASB S2 assurance? shows where the evidence lives in Drova.
6. Lodge with the annual report. The sustainability report is the fourth report in the annual report, alongside the financial report, directors' report and auditor's report, and it is subject to the assurance that phases in under the AUASB's ASSA 5010 timeline.

AASB S2 Climate-related Disclosures is the Australian standard that sets what a sustainability report must say about climate. It is based on the ISSB's IFRS S2 and requires disclosure across governance, strategy, risk management, and metrics and targets, including scenario analysis and Scope 1, 2 and 3 greenhouse gas emissions. Mandatory reporting is phased under the Corporations Act 2001 across three groups, and ASIC Regulatory Guide 280 explains how ASIC administers it.

• Sustainability report. The report lodged with the annual report under the Corporations Act 2001. It contains the climate statements, the notes to the climate statements and the directors' declaration.
• Financial materiality. Whether a climate-related risk or opportunity could reasonably be expected to affect your cash flows, access to finance or cost of capital over the short, medium or long term.
• Clause. One numbered disclosure requirement of AASB S2, shown in Drova as a node in the framework's clause tree with its own requirements, controls, evidence and tasks.
• Evidence. A document or a linked platform record that shows a requirement is met: a board charter, a policy, a risk record, a scenario test.
• Assurance. An independent review of the sustainability report under the AUASB's ASSA 5000, phased in from limited to reasonable assurance under ASSA 5010.

The ASRS reporting guide sets out the operating process from scope to assurance-ready disclosure. The report is a disclosure of what you have done, not a plan. Drova generates it from the assessments, clauses, evidence and controls already recorded in the platform, which is why the steps below start with the framework rather than the document.

What does an AASB S2 disclosure report contain?

Disclosures across governance, strategy, risk management, and metrics and targets for climate-related risks and opportunities, including scenario analysis and Scope 1, 2 and 3 greenhouse gas emissions, as AASB S2 requires and as the Corporations Act phases in across three groups.

Can Drova generate the whole report?

Drova generates the ASRS S2 Compliance Disclosure from the framework clauses, evidence, controls and the materiality assessment your team has recorded. Your team reviews it, edits where needed and lodges it. Sheila drafts; people sign off.

Why does the report say it needs to be unlocked?

On a framework where no clauses have been worked yet, the report is locked until there is recorded clause data to generate from. Get started takes you to the framework to begin, and Download sample shows what the finished report looks like.

Do I need Scope 3 emissions in the first report?

Scope 1 and 2 emissions are required from the first reporting year. AASB S2 gives relief from Scope 3 in the first year an entity applies the standard, and Scope 3 is required from the second year.

When does assurance apply?

Assurance over sustainability reports phases in under the AUASB's ASSA 5010, moving from limited assurance to reasonable assurance across the three reporting groups. Build the evidence trail from the first year.

Where does the generated report go?

Sheila prepares the report in the background and tells you when it is ready. The document lands in Reporting, where earlier reports are listed too, and generating again from the framework produces an updated version.