Free resources
Free AASB S2 Climate Scenario Readiness Checklist
Misha Cajic
May 7, 2025
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4
min read
For strategy and sustainability teams gearing up for climate scenario analysis, one of the toughest challenges is knowing where to begin — and what matters most. With the introduction of AASB S2 and growing alignment to ISSB and TCFD, the pressure is on to deliver robust, defensible disclosures. That’s why we’ve created a free AASB S2 Climate Scenario Readiness Checklist: a structured, Excel-based tool designed to guide Australian organisations through the core criteria needed to prepare for climate scenario modelling.
If you’re in sustainability, ESG reporting, finance, or risk, this resource is built for you.
The AASB S2 Climate Scenario Readiness Checklist walks you through every critical component required for scenario analysis. It’s structured around seven key categories — governance, boundaries, input data, scenario design, modelling, disclosure, and internal capability — each with targeted questions that help assess whether your organisation is ready to move forward with scenario work under AASB S2.
This tool isn’t about doing the modelling for you. Instead, it makes sure you’re asking the right questions first. It’s an effective gap assessment that helps you avoid rework later and gets your organisation strategically aligned from day one.
We built this checklist with real-world reporting and strategy needs in mind. It’s ideal for:
For these users, the checklist is more than a diagnostic — it’s a roadmap. It allows teams to assess current state, identify what data and decisions are still needed, and build a pathway to compliance and meaningful disclosure.
The checklist includes a simple but structured format that’s easy to complete and interpret. Each section contains targeted yes/no questions followed by space to provide documentation or context. You’ll work through the following seven areas:
1. Governance & Strategy Alignment
Do you have internal ownership for climate scenario analysis? Is it discussed at the board level? Are scenarios embedded into strategy?
2. Organisational & Emissions Boundary
Have you defined your organisational and emissions boundaries? Is your modelling aligned with your strategic time horizons?
3. Input Data Prepared
Is your Scope 1 and 2 data up to date? Have you identified relevant Scope 3 categories? Do you have the right financial and risk exposure data in place?
4. Climate Scenarios Selected
Have you chosen both 1.5°C and >2°C scenarios from credible sources like IEA or IPCC? Are your assumptions documented and relevant to your sector?
5. Impact Modelling Approach Ready
Can you estimate how scenarios will affect EBITDA, CAPEX, and key risk exposures? Do you have a modelling approach that integrates both transition and physical risks?
6. Disclosure-Ready Outputs
Are your outputs quantitative and supported by qualitative narratives? Are they integrated into your overall climate disclosure strategy?
7. Internal Capabilities & Continuous Improvement
Have your teams been trained? Do you have a refresh cycle? Are lessons learned from past work being shared internally?
Each category is structured to support internal alignment and decision-making, helping teams move confidently from assessment to action.
Most organisations know they need to act on climate risk, but few feel fully prepared. This checklist bridges that gap. It helps teams identify missing data, governance weaknesses, and capability gaps — before they become problems in audit or disclosure review.
It also complements Avarni’s platform capabilities. If you’re planning to move from manual scenario analysis into automated modelling or dashboard reporting, this tool provides the foundation. It ensures your data, assumptions, and structure are sound before you digitise the process.
The AASB S2 Climate Scenario Readiness Checklist is one of the only free tools specifically designed for the Australian regulatory context. It reflects best practice under ISSB and TCFD, but keeps the focus on local compliance and real-world readiness.
You can download the checklist for free and begin using it immediately with your team. We recommend reviewing it collaboratively — engaging sustainability, finance, and strategy stakeholders — to get a shared view of your readiness and align on next steps.
While it’s not a substitute for formal advice or modelling, the checklist helps ensure you don’t skip the basics. And if you do need help building on what you find, our team is here to support that journey.
