The Challenge

Australia’s mandatory climate reporting regime is live. For many companies, 2025 marked the start of a significant and often daunting first year of AASB S2 compliance. The requirements are detailed, the evidence bar is high, and the stakes are real – these are financial disclosures, subject to assurance, scrutinised by regulators and investors alike.

Grange Resources engaged 2XE at the start of 2025 to support end-to-end preparation of its first AASB S2 climate-related financial disclosures, targeting publication by late February 2026.

This was not simply a matter of filling in a template. AASB S2 requires companies to build a credible, defensible case across four pillars: governance, strategy, risk management, and metrics and targets. Each pillar demands evidence, clear judgements, documented assumptions, and a trail that can withstand external review.

For Grange, the scope was substantial. They needed to establish a robust evidence base from scratch, identify and assess material climate-related risks, strengthen governance documentation, prepare disclosure-ready greenhouse gas information, and develop a clear narrative – all while bringing internal teams along on the journey and keeping the Board informed and confident throughout.

The Solution

2XE led the process through a structured work program across the full calendar year.

A key part of the approach was leveraging and adapting existing internal documents and tools, which helped accelerate the process and ensure the work was grounded in Grange’s existing systems and ways of working.

That meant workshops with corporate and site-based teams, targeted document uplift, evidence development, iterative drafting, and direct support to management and the Board at key decision points.

One of the most complex parts of the engagement was helping Grange identify and substantiate the climate-related risks reasonably expected to be material for Year 1 disclosure. This required drawing on operational insight from site personnel, strategic context from senior decision-makers, and a clear understanding of what AASB S2 actually requires. It also meant working through the treatment of potential opportunities, documenting key judgements, and building the audit trail to support both management sign-off and external assurance.

None of this happens in isolation. Getting it right requires genuine engagement across the business and a project partner willing to get into the detail rather than hand over a report and step back.

The Experience

“2XE helped us turn a complex first-year AASB S2 requirement into a structured, practical and assurance-ready process. Their team worked closely with our people across the business, built confidence with management and the Board, and helped us deliver on time.”

Mark Lucadou-Wells | Commercial Accountant – Energy & Risk – Grange Resources

The Outcomes

• First AASB S2-aligned climate disclosures delivered on time, with external assurance completed successfully ahead of the February 2026 publication date
• A clearer climate governance structure, documented and embedded across the business
• A tested, assurance-ready approach to identifying and substantiating material climate risks
• Stronger internal capability across teams, with genuine understanding of AASB S2 requirements built through workshops and iterative drafting
• A solid foundation for more mature climate-related financial analysis and disclosure in the years ahead

Proof Point

“Grange Resources delivered its first AASB S2-aligned climate disclosures on time and assurance-ready – completing external assurance ahead of its February 2026 publication date after a structured, full-year engagement spanning governance, risk, GHG reporting and Board-level support.”

Building Capability, Not Just Compliance

Year 1 AASB S2 is not a one-off exercise. Companies that treat it as purely a compliance hurdle will find Year 2 just as hard. Grange used Year 1 to genuinely understand the requirements, embed good processes, and upskill their people – and they are in a fundamentally different position because of it.