Following the issuance of IFRS S2 which requires the disclosure about a companys governance processes, strategies, risks and opportunities and performance in relation to its climate-related information, Australian listed companies are facing mandatory climate-related reporting and assurance requirements starting in July 2024. In this study, we assess the preparedness of all listed companies on Australian Stock Exchange from disclosures in annual reports between 2018 and 2022. We assess preparedness from two aspects: (i) the disclosure of any climate-related information in annual report (disclosure) and (ii) the alignment of climate-related disclosures with the impending mandatory requirements (alignment). For a sample of 7,020 company-year observations, of which 2,179 had climate-related disclosures in their annual reports, we find a low level of preparedness among Australian listed companies. We further explore drivers for preparedness and find that companies operating in carbon-sensitive industries and exposed to a more stringent regulatory environment demonstrate a higher level of preparedness. While the existence of a sustainability committee and better environmental performance is positively associated with disclosure, they are not found to be significant drivers for alignment. In addition to company characteristics, we find that Big 4 auditors is a significant driver for both disclosure and alignment, and auditors expertise in carbon-intensive industries is positively associated with the alignment aspect of preparedness. Our findings provide timely initial evidence to inform the current regulatory agenda on mandatory climate-related reporting and assurance requirements.