Document ID: chunk:federal_register_of_legislation:F2024L01472:body:0:p9
Version: federal_register_of_legislation:F2024L01472
Segment Type: other
Provision Reference: 
Character Range: 24161–27277

planning (anticipated financial effects).
16 Specifically, an entity shall disclose quantitative and qualitative information about:
(a) how climate-related risks and opportunities have affected its financial position, financial performance and cash flows for the reporting period;
(b) the climate-related risks and opportunities identified in paragraph 16(a) for which there is a significant risk of a material adjustment within the next annual reporting period to the carrying amounts of assets and liabilities reported in the related financial statements;
(c) how the entity expects its financial position to change over the short, medium and long term, given its strategy to manage climate-related risks and opportunities, taking into consideration:
(i) its investment and disposal plans (for example, plans for capital expenditure, major acquisitions and divestments, joint ventures, business transformation, innovation, new business areas, and asset retirements), including plans the entity is not contractually committed to; and
(ii) its planned sources of funding to implement its strategy; and
(d) how the entity expects its financial performance and cash flows to change over the short, medium and long term, given its strategy to manage climate-related risks and opportunities (for example, increased revenue from products and services aligned with a lower-carbon economy; costs arising from physical damage to assets from climate events; and expenses associated with climate adaptation or mitigation).
17 In providing quantitative information, an entity may disclose a single amount or a range.
18 In preparing disclosures about the anticipated financial effects of a climate-related risk or opportunity, an entity shall:
(a) use all reasonable and supportable information that is available to the entity at the reporting date without undue cost or effort; and
(b) use an approach that is commensurate with the skills, capabilities and resources that are available to the entity for preparing those disclosures.
19 An entity need not provide quantitative information about the current or anticipated financial effects of a climate-related risk or opportunity if the entity determines that:
(a) those effects are not separately identifiable; or
(b) the level of measurement uncertainty involved in estimating those effects is so high that the resulting quantitative information would not be useful.
20 In addition, an entity need not provide quantitative information about the anticipated financial effects of a climate-related risk or opportunity if the entity does not have the skills, capabilities or resources to provide that quantitative information.
21 If an entity determines that it need not provide quantitative information about the current or anticipated financial effects of a climate-related risk or opportunity applying the criteria set out in paragraphs 19–20, the entity shall:
(a) explain why it has not provided quantitative information;
(b) provide qualitative information about those financial effects, including identifying line items, totals and subtotals within the related financial