How do you set up AASB S2 in Drova for the first time?

To set up AASB S2 you confirm your reporting group and first period, name the people who own governance, strategy, risk management, and metrics and targets, and break the standard into clauses with an owner and an evidence source against each one. In Drova that work list already exists: open RunSure, activate the AASB ASRS S2 framework from its card, and the standard opens as a clause tree with an owner, a status and a result on every clause. Assigning owners is the first job; evidence, controls, tasks and the disclosure report all hang off those clauses.

• Group first. Your group under ASIC Regulatory Guide 280 sets your first reporting period and every date after it.
• Owners before evidence. A clause nobody owns never gets evidenced, so assigning owners is the first thing to do once the framework is active.
• Scope 1 and 2 from year one. Line up emissions data early; relief applies to Scope 3 in the first year and it is required from the second.

1. Confirm your group and first reporting period. Apply the two-of-three test in ASIC Regulatory Guide 280: Group 1 reports from annual periods beginning on or after 1 January 2025, Group 2 from 1 July 2026, Group 3 from 1 July 2027. Every other deadline runs from that start date.
2. Name an owner for each of the four pillars. Governance, strategy, risk management, and metrics and targets each need one accountable person, for example the company secretary, the sustainability lead, the risk manager and the CFO.
3. Break the standard into clauses and assign each one. Every disclosure requirement becomes a line with an owner, a status and a result, so finished has a definition before the assurance provider asks. In Drova this is the owner assignment step once the framework is active.
4. Decide what counts as evidence. Agree which documents will stand behind each pillar: board and committee charters, the risk policy, the materiality assessment, scenario analysis working papers, emissions calculations. Assurance over the sustainability report is phased in for each reporting group under the AUASB's ASSA 5010 timeline, so the evidence trail starts in year one.
5. Start the data work early. Scope 1 and 2 emissions are required from the first reporting year; AASB S2 gives first-year relief on Scope 3, so it is required from the second. Scenario analysis is required to assess climate resilience using an approach that fits your circumstances, and a simpler qualitative approach is allowed where it is appropriate. The Corporations Act requires at least two scenarios, a low-warming case limited to 1.5°C and a high-warming case well above 2°C.
6. Set a review rhythm. Agree how often owners update status and result, who reads the roll-up and when the board sees it. The sustainability report is part of your annual reporting obligations alongside the financial report, so the evidence has to be in place before that report is prepared. Tracking progress has its own guide.

AASB S2 Climate-related Disclosures is the Australian Sustainability Reporting Standard for climate-related financial disclosures, issued by the AASB on 20 September 2024 and based on IFRS S2. It requires disclosure across governance, strategy, risk management, and metrics and targets, covering the climate-related risks and opportunities that could reasonably be expected to affect your prospects and the process used to identify, assess, prioritise and monitor them, including how that process fits into overall risk management.

Reporting is phased under the Corporations Act 2001: Group 1 from annual periods beginning on or after 1 January 2025, Group 2 from 1 July 2026 and Group 3 from 1 July 2027, with the thresholds in ASIC Regulatory Guide 280. Work out your group on the applicability page. A Group 3 entity that determines it has no material financial risks or opportunities relating to climate may lodge a statement to that effect under section 296B of the Corporations Act instead of full disclosures.

Four terms carry this guide. A reporting group is the cohort the Corporations Act places your entity in, which fixes your first reporting period. A clause is one numbered requirement of the standard, held in Drova as a line with an owner, a status and a result. Evidence is the document or record that shows a clause has been met, such as a charter, a policy or an emissions calculation. A framework in Drova is a standard loaded as a clause tree that your organisation activates and tracks progress against.

The clauses your set-up has to cover are listed on the AASB S2 disclosures checklist. The steps below give each one an owner, a status and a place for evidence.

Do I need to activate AASB S2 myself?

Check the card. If the AASB ASRS S2 card on the Compliance page shows Active, someone has already done it and you can open it with Manage compliance. If it shows Inactive, activate it from the card's menu.

Which climate frameworks does Drova ship?

AASB ASRS S2 sits in the Sustainability group alongside ISSB IFRS S2 and EFRAG VSME. If a standard you need is not on the Compliance page, use Request a framework and Drova support will load it in.

Can AASB S2 and IFRS S2 both be active?

Yes. More than one framework can be active at once on the Compliance page, and each active framework keeps its own clause tree, owners and progress.

What happens if I set the framework to Inactive?

Drova asks you to confirm, then stops tracking progress against the framework. Existing progress is retained: attestations, evidence links, control links and tasks are kept and tracking resumes when the framework is reactivated.

Can I add our own clauses to the framework?

Yes. An authorised user can extend an activated framework with custom sections or clauses. Drova marks them as custom so reviewers can tell your additions from the regulator's text.