Document ID: chunk:federal_register_of_legislation:F2024L01472:body:0:p71
Version: federal_register_of_legislation:F2024L01472
Segment Type: other
Provision Reference: 
Character Range: 202733–205824

certain conditions are met. Therefore, the AASB decided to omit from AASB S2 paragraph AusB39.1 in [draft] ASRS 2 as proposed in ED SR1, which proposed to permit an entity to measure and disclose its Scope 3 GHG emissions using data for the immediately preceding reporting period if reasonable and supportable data related to the current reporting period is unavailable. That proposal was consistent with the Treasury's second consultation paper that Australian Sustainability Reporting Standards were expected to provide additional relief to allow entities to disclose estimates of their Scope 3 GHG emissions relating to any one-year period, up to 12 months prior to the relevant reporting period.
 2.             There was general support from stakeholders for the flexibility to allow entities to use Scope 3 GHG emission information obtained from its value chain partners for a period that differs from its reporting period in certain circumstances, which is consistent with the provision in paragraph B19 of the Standard (and IFRS S2).

Financed emissions
 1.             Consistent with IFRS S2, the AASB decided to require entities participating in financial activities of asset management, commercial banking or insurance to provide the additional and specific financed-emission disclosures set out in IFRS S2 paragraphs B61–B63.
 2.             ED SR1 proposed to require such an entity to consider the applicability of those additional disclosures, rather than requiring disclosure of the financed emission information, to solicit feedback from stakeholders on whether all such financed emission information would be relevant and useful to Australian entities that participate in asset management, commercial banking or insurance activities.
 3.             Some stakeholders expressed concerns that:
          1.                     the requirement in IFRS S2 paragraphs B62 and B63 for an entity to disclose disaggregation of an entity's absolute gross financed emission by Scope 1, 2 and 3 emissions for each industry by asset class could be challenging due to potentially limited availability of value chain data and would create an unnecessary administrative burden for reporting entities; and
          1.                    there is currently no industry standard for calculating financed emissions for undrawn commitments.
 4.             The AASB acknowledged the stakeholders' concerns described in paragraph BC56 and that more time may be needed for entities to prepare the additional financed emission information. However, the AASB observed that the transition relief provided by paragraph C4(b) for an entity to not disclose its Scope 3 GHG emissions in the first year of applying the Standard means that an entity that participates in financial activities of asset management, commercial banking or insurance is required to prepare the additional financed emission information set out in paragraphs B61–B63 only from the second year of applying AASB S2. Accordingly, the AASB decided that no modification is needed relating to the requirements set out in those IFRS