Australia’s new mandatory climate disclosure requirements are landing.
Here’s how Losee Consulting helps take the pressure off.
Climate disclosure is new territory for most organisations and the standard is comprehensive.
Early lessons from Australia’s first mandatory climate reporters under Australiam Accounting Standards Board – Climate-related Disclosures (AASB S2) have shown that climate reporting is far more than a compliance exercise. Even organisations with mature sustainability programs and long-standing National Greenhouse and Energy Reporting scheme (NGERs) experience encountered challenges around Scope 3 emissions, supply chain data, governance, and financial-grade reporting systems.
The entities that handle it well will be those that treat the process as a genuine opportunity to understand and manage their climate exposure.
At Losee Consulting, we help organisations navigate these complexities by translating evolving climate disclosure requirements into practical, business-ready solutions that support both compliance and long-term resilience.
Depending on the size of the organisation, compliance deadlines may be closer than expected. We’re here to take the pressure off and simplify the process.
Supported by sustainability reporting consultants
Rather than treating climate reporting as a box-ticking exercise, we help businesses build the systems, strategies and governance frameworks needed to remain compliant, competitive and climate ready – both now and into the future.
Climate risk and materiality assessments
We help organisations understand how climate-related risks and opportunities may impact their operations, supply chains, financial performance and long-term strategy. Through climate risk assessments and materiality analysis, we identify the issues most relevant to your business and stakeholders (financial and non-financial), supporting clear, prioritised disclosures aligned with AASB S2 requirements.
This process not only supports compliance, but also helps businesses strengthen resilience, improve decision-making and identify opportunities for innovation and long-term value creation.
Carbon accounting
Accurate emissions data is a critical foundation of mandatory climate reporting. We support businesses in developing comprehensive greenhouse gas emissions inventories, including Scope 1, Scope 2 and Scope 3 emissions, in line with recognised reporting frameworks and AASB S2 expectations.
Early Group 1 reporting insights highlighted Scope 3 emissions and supply chain engagement are emerging as some of the most significant capability gaps for Australian organisations.
We help businesses establish practical, defensible methodologies and improve supplier engagement processes to support reliable reporting outcomes. Our team works with you to establish practical carbon accounting processes that integrate into your existing systems and operations, making ongoing reporting more efficient, reliable and scalable as requirements mature over time.
Climate scenario planning
AASB S2 places strong emphasis on understanding how different climate futures may impact business performance and strategy. We work with organisations to develop and apply climate scenario analysis that explores potential risks, disruptions and opportunities under a range of future climate conditions and transitions.
AASB S2 also requires climate disclosures to withstand increasing levels of scrutiny, governance and assurance – similar to financial reporting. We support organisations in building robust internal processes, documentation and reporting frameworks that improve confidence in climate-related disclosures.
By stress-testing your business model against different scenarios, we help you better understand vulnerabilities, support strategic planning and demonstrate to stakeholders that climate risks are being actively considered and managed.
Our approach to climate-related disclosures
The climate-related disclosures are built around four core pillars; Governance, Strategy, Risk Management, and Metrics and targets
Governance
The governance pillar tends to catch organisations off guard, because it is not a technical exercise, it is an organisational one. AASB S2 requires evidence that climate risk is genuinely embedded in how an organisation is led: board-level oversight, clear management accountability, and climate considerations reflected in decision-making and incentive structures. Building that kind of structure takes time.
Losee Consulting has supported infrastructure projects and organisations in developing and implementing sustainability management plans and has solid practical experience identifying the control measures needed to demonstrate meaningful oversight of climate objectives and ensure they are embedded across the team.
Strategy and Risk Management
The strategy pillar is one of the most demanding sections of AASB S2. It requires organisations to identify and describe the climate-related risks and opportunities that could reasonably affect their business, distinguishing between physical risks such as flooding, drought and extreme heat, and transition risks arising from policy shifts, market changes and evolving expectations.
Losee Consulting has long-standing experience assessing the vulnerability of business assets to climate risks and identifying opportunities to build resilience across the value chain.
Identifying the risks is only part of the work. Organisations also need to demonstrate how those risks and opportunities are shaping strategy and decision-making. It is more than acknowledging the climate risks, but how risk management effectively influences how resources are allocated, how investments are evaluated and how transition plans are developed. This is where many organisations find the gap between their commitments and their actions.
The strategy pillar also requires organisations to show how their strategy and business model hold up across different climate futures, using scenario analysis tested against at least a 1.5°C pathway and a high-warming scenario. This is not a one-off modelling exercise. It requires genuine engagement with uncertainty and a clear articulation of how the organisation would adapt.
Losee Consulting’s experience with resilience planning and scenario modelling produces analysis that is rigorous enough to withstand scrutiny and inform real decisions.
Metrics and Targets
Running through all four pillars is the requirement to measure and disclose greenhouse gas emissions across Scopes 1, 2 and 3 using the GHG Protocol standard. For most organisations, Scope 1 and 2 emissions are relatively manageable. Scope 3 is where complexity grows, reaching into supply chains, subcontractors and the downstream use of products and services.
Losee Consulting has extensive experience in greenhouse gas assessment, having supported clients to develop their emissions inventories from the ground up by establishing reporting boundaries, listing assets, and then setting carbon reduction plans involving fleet transition, renewable energy adoption and Science Based Targets.
Climate reporting support: Building capability beyond compliance
At Losee Consulting, we are sustainability practitioners already working with clients on AASB S2 readiness. We have spent years working alongside organisations helping them understand and manage their environmental footprint. Many capabilities that AASB S2 now require are core to what we do every day, now structured within a new reporting framework.
Group 1 reporting has demonstrated that successful climate disclosure requires more than technical emissions calculations. It depends on strong collaboration between sustainability, finance, procurement, risk and leadership teams, supported by clear governance and reliable systems.
Our approach helps organisations build these capabilities early, positioning climate reporting as a strategic business function rather than a last-minute compliance exercise.
Beyond reporting itself, we help businesses embed sustainability into governance, operations and long-term planning. From supporting leaders and improving internal reporting processes and stakeholder communication, our approach is designed to create practical, lasting capability – not just a once-off compliance outcome.
With mandatory climate reporting becoming an increasingly important expectation from regulators, investors, customers and supply chains, proactive preparation can position your organisation ahead of the curve while strengthening business resilience for the future.
If you’d like to understand what your obligations are, where your current sustainability work already meets the mark, and what gaps you need to close let’s have a conversation.
Get in touch with the Losee Consulting team today.
Have further questions?
Contact the team at Losee Consulting for more information or guidance on how to comply with the new mandatory climate reporting requirements.
More tools and resources
- Losee Consulting B-Corp Profile
- A guide to mandatory climate reporting in Australia
- What mandatory climate reporting means for your business
- Materiality Matrix: A systematic approach to navigating sustainability in Australia
- Navigating the new legislation: Are you prepared for Mandatory Climate Reporting?
Ana Laura Rosa
BBiolSc
Ana Laura is a Sustainability Consultant completing a Master of Environment (Sustainability) with a Bachelor of Biological Science in Conservation. At Losee Consulting, she supports carbon management, infrastructure sustainability, and business case assessments, specialising in data analysis, emissions calculations, and ensuring accurate sustainability metrics.