Document ID: chunk:federal_register_of_legislation:F2024L01472:body:0:p59
Version: federal_register_of_legislation:F2024L01472
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in whole or in part.
B67 In identifying and disclosing the metric used to set a climate-related target and measure progress, an entity shall consider the cross-industry metrics and industry-based metrics. If the metric has been developed by the entity to measure progress towards a target, the entity shall disclose information about that metric in accordance with paragraph 50 of IFRS S1.
C1 An entity shall apply this Standard for annual reporting periods beginning on or after 1 January 2024.  Earlier application is permitted.  If an entity applies this Standard earlier, it shall disclose that fact and apply IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information at the same time.

Basis for Conclusions and dissenting view
This Basis for Conclusions accompanies, but is not part of, AASB S2.

Introduction
 1.                This Basis for Conclusions summarises the Australian Accounting Standards Board's (AASB's) considerations in developing AASB S2. In making decisions, individual Board members gave greater weight to some factors than to others.

Reasons for issuing this Standard
 1.                The AASB issued AASB S2 to support the Australian Government's decision to require large businesses and financial institutions to prepare climate-related financial disclosures.
 2.                Following multiple consultations and responding to calls from investors for more consistent, complete, comparable and verifiable information about an entity's climate-related risks and opportunities, in 2023 the Australian Government confirmed its intention to make climate-related financial disclosures mandatory for large businesses and financial institutions. In June 2023, the Commonwealth Treasury released the proposed design for a mandatory reporting framework, with an approach for Australia to be aligned as far as practicable with the standards developed by the International Sustainability Standards Board (the ISSB) to the extent relevant to climate-related financial disclosure. The Australian Government's policy intention is to improve the quality and comparability of climate-related financial disclosures across different companies and sectors, which, in turn, should help investors make more informed decisions.
 3.                In September 2024, the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Act 2024 was passed, introducing mandatory climate-related financial disclosures for certain corporations and other entities through amendments to the Corporations Act 2001.

Approach to developing AASB S2
 1.                In March 2022, the ISSB published an Exposure Draft on [Draft] IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and an Exposure Draft on [Draft] IFRS S2 Climate-related Disclosures, which integrated and built on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), created by the Financial Stability Board (FSB).
 2.                In April 2022, the AASB published Exposure Draft ED 321 Request for Comment on ISSB [Draft] IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and [Draft] IFRS S2 Climate-related Disclosures. Comments received on ED 321 indicated