["Australian Journal of Agricultural and Resource Economics, EarlyView. ", "\nABSTRACT\nAlongside the 2024–2025 review of the National Electricity Market, Australian energy companies faced the most significant reforms to climate disclosures in corporate history. Specifically, the Australian Sustainability Reporting Standard for Climate‐related Disclosures (AASB S2) was announced in September 2024, after which all entities falling within the purview of the National Greenhouse and Energy Reporting Act—effectively every major electricity generator and retailer—were required to identify and disclose climate‐related risks and opportunities. This includes Scope 1, 2 and 3 emissions and scenario analysis of their exposure to climate disruptions. Whilst some energy companies had already voluntarily disclosed some elements of this information, these new requirements required more consistent, comparable and forward‐looking reporting. We examine the early stages of measures taken by the energy sector to comply with AASB S2. Drawing on a 12‐month collaboration with the Australian Energy Council, our case study highlights the need for greater attention to robust methodologies for calculating Scope 3 emissions and stress testing climate scenarios, including the policy assumptions that underpin them. Importantly, this research highlights the risks inherent to any national standard that is more closely aligned to policy aspirations than to climate science, given that such discrepancies may pose risks to the resilience of the National Electricity Market. This study also contributes to stakeholder theory by illustrating the need for greater attention to how sector‐level collaboration among competitors can support improved corporate disclosures, especially in relation to climate governance.\n"]