---
title: "Decide whether the entity must prepare a climate disclosure"
url: "https://ailawframework.com/practice/climate-esg-and-sustainability-reporting/decide-whether-the-entity-must-prepare-a-climate-disclosure/commonwealth"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A48-R20260922-1-CTH"
practice_area: "Climate, ESG & Sustainability Reporting"
tier: "red"
lawyer_review: "required"
jurisdictions: ["CTH"]
last_reviewed: "2026-09-23"
---

# Decide whether the entity must prepare a climate disclosure

> Extract the entity’s name, the financial year, revenue bands the client has supplied, and group structure into a fact sheet for the threshold question.

Canonical page: https://ailawframework.com/practice/climate-esg-and-sustainability-reporting/decide-whether-the-entity-must-prepare-a-climate-disclosure/commonwealth  
Last reviewed: 2026-09-23

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Climate, ESG & Sustainability Reporting](https://ailawframework.com/practice/climate-esg-and-sustainability-reporting.md) |
| Human involvement | Red: Lawyer writes; AI may check, clarify or collect data |
| How AI is used | Extract the entity’s name, the financial year, revenue bands the client has supplied, and group structure into a fact sheet for the threshold question. |
| What the lawyer must review | Make the threshold call yourself Do not leave a generated “Group 1” or “not required” label in client advice |
| Written for | Commonwealth |
| Applies to | [Decide whether the entity must prepare a climate disclosure](https://ailawframework.com/practice/climate-esg-and-sustainability-reporting/decide-whether-the-entity-must-prepare-a-climate-disclosure.md) |

## Checking plan

**Lawyer-led judgement**

The fact sheet holds the client’s figures. The lawyer decides whether a sustainability report is required for that year.

- What the AI does: Extract the entity’s name, the financial year, revenue bands the client has supplied, and group structure into a fact sheet for the threshold question.
- What the lawyer does: Apply the Corporations Act classes and dates to the facts you have checked. Say what is still unknown.
- Who reviews: Lawyer competent in the matter and the forum
- Basis: Planning guidance checked against the linked public sources on 22 September 2026. Confirm the current instrument before reliance.
- Why: The traffic light follows the consequence of an error and how much of the output the lawyer must check before it is used.
- Restriction: The lawyer leads the substantive decision. Any assistance stays inside the preparation described for this task.

## Checks the lawyer makes

1. Record the source of each figure and whether the client says it is statutory.
2. Open AASB S2 and the Corporations Act provisions the lawyer names. Do not rely on a secondary summary for the class test.
3. Note the three statutory start dates and which year is being asked about.
4. The lawyer writes the answer and the missing facts.

## Notes

- Suggested working checks from the linked public sources. Read the source and confirm it applies to this forum and this date. The checks do not approve software or record that the work is done.

## Practical guide

Jurisdiction: Commonwealth: Corporations Act 2001 and AASB S2

**Deliverable**: A fact sheet of the inputs the Act needs, with the lawyer’s conclusion written separately.

**Inputs**

- Financial statements or management figures the client has labelled
- Group structure
- The reporting year

**Example**: A consolidated revenue figure in a pitch deck is not the statutory figure. The fact sheet marks the source. It does not pick a group.

**Stop and escalate when**

- The revenue or group figures are estimated and not identified as such.
- The draft states that the entity must or need not report.

Checked 2026-09-22.

## Sources

- [AASB S2 Climate-related Disclosures, September 2024](https://standards.aasb.gov.au/aasb-s2-sep-2024) (checked 2026-09-22)

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*