Document ID: chunk:federal_register_of_legislation:F2024L01472:body:0:p5
Version: federal_register_of_legislation:F2024L01472
Segment Type: other
Provision Reference: 
Character Range: 12184–15455

descriptions of "general purpose financial reports" and "primary users of general purpose financial reports" in the Framework for the Preparation and Presentation of Financial Statements when applying AASB S2, rather than the definitions of those terms in Appendix A.
 5.                     Consistent with the Legislation Act 2003, AASB S2 specifies the relevant versions of non-legislative Australian documents and foreign documents referenced in the Standard, such as the latest international agreement on climate change and the Global Industry Classification Standard (GICS).

Australian Sustainability Reporting Standard AASB S2
The Australian Accounting Standards Board makes Australian Sustainability Reporting Standard AASB S2 Climate-related Disclosures under section 336A of the Corporations Act 2001.

Keith Kendall
Dated 20 September 2024 Chair – AASB

Australian Sustainability Reporting Standard AASB S2
Climate-related Disclosures

Objective
 1.                         The objective of AASB S2 Climate-related Disclosures is to require an entity to disclose information about its climate-related risks and opportunities that is useful to primary users of general purpose financial reports in making decisions relating to providing resources to the entity.[1]
2 This Standard requires an entity to disclose information about climate-related risks and opportunities that could reasonably be expected to affect the entity's cash flows, its access to finance or cost of capital over the short, medium or long term. For the purposes of this Standard, these risks and opportunities are collectively referred to as 'climate-related risks and opportunities that could reasonably be expected to affect the entity's prospects'.

Scope
3 This Standard applies to:
(a) climate-related risks to which the entity is exposed, which are:
(i) climate-related physical risks; and
(ii) climate-related transition risks; and
(b) climate-related opportunities available to the entity.
4 Climate-related risks and opportunities that could not reasonably be expected to affect an entity's prospects are outside the scope of this Standard.

Core content

Governance
5 The objective of climate-related financial disclosures on governance is to enable users of general purpose financial reports to understand the governance processes, controls and procedures an entity uses to monitor, manage and oversee climate-related risks and opportunities.
6 To achieve this objective, an entity shall disclose information about:
(a) the governance body(s) (which can include a board, committee or equivalent body charged with governance) or individual(s) responsible for oversight of climate-related risks and opportunities. Specifically, the entity shall identify that body(s) or individual(s) and disclose information about:
(i) how responsibilities for climate-related risks and opportunities are reflected in the terms of reference, mandates, role descriptions and other related policies applicable to that body(s) or individual(s);
(ii) how the body(s) or individual(s) determines whether appropriate skills and competencies are available or will be developed to oversee strategies designed to respond to climate-related risks and opportunities;
(iii) how and how often the body(s) or